River Gets Green Light on Buy of Pelco

River Associates has acquired Pelco Products, a manufacturer and supplier of traffic signal and utility hardware.

Pelco’s product line consists of more than 5,000 SKUs of brackets and equipment mounts, arm and pole products, camera mounts, pedestrian push buttons and signs, cabinetry, and decorative signage. The company’s products are often specified into project designs by local and regional government agencies.

Pelco is one of the largest suppliers of traffic signal hardware in the United States with more than 350 employees and 315,000 square feet of manufacturing space in Edmond, Oklahoma. Pelco was co-founded in 1985 by the father and son team of Phil and Steve Parduhn.

“As a founder-owned business, we were looking for the right partner for our next chapter,” said Steve Parduhn, CEO of Pelco. “River’s 30-year tenure in the industry, experience with other niche product manufacturing companies, and successful track-record with other founder-owned businesses checked all the boxes. The team at River really dug in and did their homework on Pelco and our industry. We are confident in their ability to guide us through Pelco’s exciting next phase and look forward to working with the firm.”

“River is excited to have Pelco join our portfolio of platform companies,” said Mike Brookshire, a co-managing partner at River Associates. “Since 1985, they have built a reputation for their innovation, quality and service in the traffic signaling and utility hardware categories. Their tenured and diligent team is dedicated to the company and it is a privilege to partner with them.”

Chattanooga, Tennessee-based River Associates invests in US and Canadian-based companies with revenues of $20 million to $100 million and EBITDA of $3 million to $15 million. Sectors of interest include niche manufacturing, high margin distribution, industrial services, and business services.

River Associates is investing out of its seventh fund, River VII LP, which closed in June 2017 with commitments of $285 million. The buy of Pelco is the firm’s 101st transaction since its founding in 1989.

Financing for this transaction was provided by Madison Capital Funding and Northstar Mezzanine Partners. Fidus Partners was the financial advisor to Pelco.

© 2021 Private Equity Professional | March 18, 2021

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