Pfingsten Sells Bailey to EBSCO Capital

Pfingsten Partners has sold Bailey International, a manufacturer and distributor of fluid power components, to EBSCO Capital.

Bailey’s products, sold under the brand names Bailey, Chief, Maxim and SureGrip, include hydraulic cylinders, power units, pumps, valves, motors, hoses and fittings, bearings and bushings that are used primarily in mobile equipment applications.

Customers of the company include repair shops, dealers, distributors and original equipment manufacturers including Volvo-USA and Caterpillar. Bailey, with more than 200 employees, was founded in 1976 and is headquartered in Knoxville, TN.

“Pfingsten’s operating and financial resources enabled our business to grow dramatically,” said Bailey CEO Ken Baker. “Together, we built a better business with excellent systems, a broadened product offering and a diversified customer base.”

Pfingsten acquired Bailey in April 2012 and completed one add-on acquisition in February 2015 with the buy of Sure Grip Controls, a British Columbia-based manufacturer of joysticks, control grips and controllers used with mobile hydraulic equipment in forestry and construction applications. “Our strategy was to build a solutions-oriented supplier with broad product reach and flexible sourcing, manufacturing and distribution capabilities,” said Scott Finegan, a managing director at Pfingsten. “Through organic growth and the acquisition of Sure Grip, Bailey established its market-leading position.”

“The Bailey team did an outstanding job managing a complex global supply chain and delivering value to its customer base,” said Denio Bolzan, a managing director at Pfingsten. “We are excited for Ken and his team as they lead the Bailey platform forward with EBSCO.”

EBSCO Capital makes control investments in North American-based companies that have EBITDA from $5 million to $20 million. Sectors of interest include business services, manufacturing, distribution, consumer products, data and software. The group is led by Managing Director Nathan Bouknight and is based in Birmingham, AL. EBSCO Capital is a division of EBSCO Industries, a privately held conglomerate with more than 20 businesses and over $2.5 billion in annual revenues. The company was founded in 1944 by Elton Stephens and today is led by Chairman Bryson Stephens (grandson of the founder) and CEO David Walker.

Pfingsten invests in middle-market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million, revenues from $20 million to $150 million, and EBITDA between $3 million and $12 million. Since completing its first investment in 1991, Pfingsten has acquired 138 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with representative offices in India and China.

Hennepin Partners was the financial advisor to Bailey and Pfingsten on this transaction.

© 2019 Private Equity Professional | September 5, 2019

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