Mission Critical Electronics (MCE), a portfolio company of Windjammer Capital, has acquired ZeroRPM. Windjammer acquired MCE in September 2016 through its fourth fund.
ZeroRPM is a provider of idle mitigation and hybrid systems that are used to provide power to a gas or diesel-powered vehicle when the engine is turned off. The company’s power units operate lighting, cab heating and cooling, and provide auxiliary power for light, medium, and heavy-duty work vehicles in the public safety, fire, ambulance, security, telecom, utility, and recreational vehicle markets.
ZeroRPM’s systems save fuel and routine maintenance costs while reducing emissions and engine wear. According to the company, idling a service vehicle for four hours a day wastes 7,300 gallons of fuel over five years. That’s equivalent to 384 barrels of crude oil. ZeroRPM is led by CEO Lance Self and is headquartered 50 miles north of Birmingham in Cullman, Alabama
Mission Critical Electronics is a provider of power conversion, battery charging, and battery products used in specialty vehicle, marine, public safety, and industrial applications. The company has more than 2,000 SKU’s and sells its products under a variety of brands including Xantrex, Kussmaul Electronics, Newmar Power, ASEA Power Systems, Power Products, and American Battery Charging. MCE is led by CEO Kevin Moschetti, and is headquartered in Huntington Beach, California.
“ZeroRPM’s patented solutions provide continuing power to onboard equipment, and heating and air-conditioning to the passenger compartment, without idling the engine. It creates a hybrid vehicle with lithium-ion battery technology that integrates seamlessly with a vehicle’s engine and existing electrical system, and automatically restarts the engine to recharge the batteries when necessary,” said Mr. Moschetti.
The acquisition of ZeroRPM builds on MCE’s presence in the vehicle electrification sector and adds additional clean energy products. Earlier company add-ons include the November 2019 buy of Purkeys Fleet Electric, an Arkansas-based manufacturer of electric power systems used by truck fleets, liftgate manufacturers, trailer manufacturers, truck dealers, and truck OEMs; and the December 2018 buy of the Xantrex, a Canada-based maker of power electronic products – battery chargers and backup power units – used in the commercial truck, recreational vehicle, marine, automotive, military and consumer markets. Xantrex was acquired by MCE through a carve-out from publicly traded Schneider Electric.
“We are excited to partner with and support the MCE management team in their ongoing organic and acquisition-oriented growth strategies,” said Matt Anderson, a managing director at Windjammer. “The benefits of ZeroRPM’s no-idle alternative in-vehicle applications are manifold – reduced emissions, lower fuel consumption, reduced operating costs, and overall improved operator safety and comfort. This transaction is a significant step that further enhances MCE’s solutions for the vehicle electrification market.”
“We will expand on ZeroRPM’s existing strength in the work truck, government and emergency vehicle markets by bringing their solutions into other specialty vehicle and marine applications. Some of the most exciting applications we are working on are in the recreational vehicle and heavy-duty truck markets where ZeroRPM’s products provide enhanced comfort for users,” concluded Mr. Moschetti.
Windjammer invests equity and subordinated debt as a control investor in middle-market businesses located in the US or Canada that have EBITDA from $8 million to $50 million. Sectors of interest include niche manufacturing, business services and value-added distribution. The firm’s investment size ranges from $50 million to $200 million per transaction. Windjammer was founded in 1990 and is based in Waltham, Massachusetts and Newport Beach, California.
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