High Road Capital Partners has acquired Radix Wire, a maker of high-temperature and fire-resistant wire and cable.
Radix’s products are designed and engineered to perform in temperatures ranging from 150°C to 1000°C and are used in a wide range of industrial OEM, maintenance, repair and operations, and fire protection applications.
The company’s branded products are manufactured in two facilities located in Euclid, OH (headquarters) and Aurora, OH. Radix was founded in 1944 (www.radix-wire.com).
“Radix is a recognized leader in the niche high-temperature and fire-resistant market, and its deep expertise across multiple engineering disciplines, proprietary material blends, and product innovation and customization capabilities differentiate the company and contribute to strong, long-term customer relationships,” said Ben Schnakenberg, Partner, High Road Capital Partners. “Radix is well positioned for continued growth, and we look forward to supporting the company’s strong management team to execute on those growth strategies.”
“We’re excited to partner with High Road and appreciate their emphasis on growth and commitment to operational excellence and product innovation,” said Steve Demko, the President of Radix Wire. “With High Road’s support, we will expand our product offering, add manufacturing capacity, and invest in our sales force to take Radix to the next level.” Mr. Demko will continue to lead the company post-closing. He and other members of Radix Wire’s senior management team invested in the transaction alongside High Road.
High Road invests in manufacturing, service, or value-added distribution businesses with revenues of $10 million to $100 million and EBITDAs of $3 million to $10 million. The firm has completed 51 transactions – 19 platform investments, 25 add-on acquisitions and 7 exits – since its founding in 2007. High Road is based in New York (www.highroadcap.com).
The buy of Radix is the ninth platform acquisition for High Road Capital Partners Fund II LP which closed in December 2013 with $320 million in capital commitments. “This investment highlights High Road’s focus on acquiring and building niche-leading companies,” added Mr. Schnakenberg. “Radix has tremendous opportunities to leverage its leadership position to expand into underpenetrated end markets and applications, and we expect to accelerate that growth with acquisitions in adjacent product categories.”
Mr. Schnakenberg led the transaction for High Road and was assisted by Jerry Anderson, Operating Partner; Scott Rubino, Principal; and Tom Cassidy, Associate.
Twin Brook Capital Partners (www.twincp.com) provided financing for the transaction.
BB&T Capital Markets (www.bbtcapitalmarkets.com) was the financial adviser to Radix.
© 2018 Private Equity Professional | November 2, 2018