Platinum Equity has acquired Pro-Mark, the parent company of Orbit Irrigation and Hydro-Rain.
Orbit Irrigation is a provider of irrigation systems and related products for the residential home improvement markets while Hydro-Rain serves the professional market with a line of contractor-grade irrigation and lighting products. Pro-Mark is headquartered in Salt Lake City (www.orbitonline.com) (www.hydrorain.com).
Orbit’s product line includes hose-end devices, controllers, timers, underground irrigation systems and other accessories sold primarily through retail and e-commerce channels. Orbit is a leader in “smart watering” technology and the company’s popular B-Hyve suite of products help customers reduce water usage and save money.
Pro-Mark was founded by Max Ericksen in 1971 and over more than 40 years his family built Orbit into a global distribution network with products available in 40 countries and all 50 US states.
“Orbit has created a successful business through a combination of product innovation, quality and entrepreneurial spirit,” said Jacob Kotzubei, a partner at Platinum Equity. “With the addition of our financial, operational and M&A resources to support the company’s growth, Orbit is poised to take yet another significant step forward. There are opportunities to deploy operational best practices throughout the organization and leverage the company’s brand to drive additional growth in both core and adjacent markets.”
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion buyout fund which closed in March 2017 and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund which closed in July 2018 to focus on investment opportunities in the lower middle market. Platinum Equity has completed more than 250 acquisitions since its founding in 1995 and is headquartered in Beverly Hills (www.platinumequity.com).
Mr. Kotzubei added that the Orbit acquisition also reflects Platinum Equity’s commitment to investing in the lower middle market as the firm continues to grow. “We are very active in the lower middle market and Orbit represents another exciting opportunity for Platinum to create value in that space,” said Mr. Kotzubei.
Orbit CEO Stuart Eyring will remain in his current position following the transition to new ownership. “This is exciting news for our company and our customers,” said Mr. Eyring. “With Platinum Equity’s support, we’ll be able to make additional investments in growth and new technology. We are very excited about the opportunities ahead of us.”
PNC Bank was the administrative agent for this transaction and Steel City Capital Funding, a division of PNC Bank, also provided a portion of the financing.
Lincoln International (www.lincolninternational.com) was the investment banking representative to Pro-Mark on the transaction.
© 2019 Private Equity Professional | February 11, 2019
