Mill Point Closes Transformers Carve-Out

Mill Point Capital has completed the carve-out of the power transformers division of publicly traded Pioneer Power Solutions for $68 million comprised of $60.5 million in cash and $7.5 million in seller’s notes.

Pioneer Transformers engineers, designs and assembles specialty electrical transformers for utility, industrial, commercial, renewable energy and data center market applications. The company provides both liquid-filled and dry-type transformer products through its US, Canada and Mexico operations.

The acquired business includes the assets of Pioneer Transformers and Pioneer Dry Type Transformer Group, which includes Jefferson Electric, Bemag Transformer, and Harmonics Limited (www.pioneertransformers.com) (www.pioneerdrytypegroup.com) (www.jeffersonelectric.com) (www.bemag.ca) (www.harmonicslimited.com).

“The North American power grid requires significant investment in both new capacity and replacement units to keep pace with ever-increasing electrical demand,” said Dustin Smith, a partner at Mill Point. “Given Pioneer’s strong market position and reputation for providing reliable custom-engineered power transformer solutions, we are confident that the company will capitalize on these favorable industry tailwinds as a standalone entity.”

“Pioneer Transformers is led by an excellent team that has earned a reputation for quality products, superior engineering capabilities and excellent levels of customer service. With strong brand equity, a history of operational excellence and the ability to now focus exclusively on its core transformer operations, the company is well-positioned to seize compelling growth opportunities,” said Antony Besso, an executive partner of Mill Point.

Mill Point makes control-oriented investments of $15 million to $80 million in middle-market companies that have enterprise values of $50 million to $250 million. Sectors of interest include business services and industrial. Mill Point Capital closed its inaugural institutional fund, Mill Point Capital Partners LP, at its hard cap of $450 million in May 2018. The firm was founded by Managing Partner Michael Duran and is based in New York (www.millpoint.com).

Pioneer Power Solutions (NASDAQ: PPSI) manufactures and services a range of specialty electrical transmission, distribution and on-site power generation equipment for applications in the utility, industrial, commercial and backup power markets. The company is headquartered in Fort Lee, NJ (www.pioneerpowersolutions.com).

Lincoln International was the financial advisor to Pioneer Power Solutions.

This transaction was first announced on July 1, 2019 – Mill Point Takes Pioneer Transformers

© 2019 Private Equity Professional | August 19, 2019

Print Friendly, PDF & Email

Related Articles

Wind Point Buys U.S. Nonwovens Wind Point Partners has acquired U.S. Nonwovens (USN), a maker of home and personal care products including disinfectants, cosmetic and personal clean...
E2P Acquires Specialty Meats Maker Entrepreneurial Equity Partners (E2P) has acquired Daniele International, a branded and private label producer of specialty meats. Daniele’s specia...
Crossplane Ties Up Accent Crossplane Capital has acquired the Accent Family of Companies, a value-added industrial distributor, in partnership with the founding Sims family and...
Shore Buys Muffin Maker from Clover Shore Capital Partners has acquired Main Street Gourmet, an Akron-based wholesale bakery. Main Street Gourmet’s (MSG) provides frozen baked goods, ...
Quad Partners Building Swimming Giant Streamline Brands, a portfolio company of Quad Partners, has acquired Saf-T-Swim, a provider of swimming instruction and water safety education. Wi...
High Road Adds Again to U-C Coatings U-C Coatings, a portfolio company of High Road Capital Partners, has acquired the assets of the stains and industrial coatings business of Eco Chemica...