Pfingsten Partners has sold Crane 1, a provider of overhead crane MRO services and equipment, to L Squared Capital Partners.
Crane 1 provides services and equipment for industrial and commercial users of new and refurbished overhead cranes and hoists. The company’s services include inspections, maintenance, repair, design and installation. Crane 1, led by CEO Robert Vevoda, was founded in January 2007 and is headquartered near Dayton in Miamisburg, Ohio.
Pfingsten acquired Crane 1 in October 2015 and during its ownership term, Crane 1 completed six add-on acquisitions including Ohio-based Crane Service & Inspections (January 2017), Texas-based Absolute Crane (July 2018), Michigan-based Mt. Clemens Crane & Service (September 2018), South Carolina-based Materials Handling Solutions (June 2019), the North Carolina-based service division of Piedmont Hoist and Crane (March 2020), and Wisconsin-based Overhead Material Handling (May 2021).
“Our strategy was to create a super-regional, independent platform in the overhead crane service industry through organic growth and acquisitions,” said Scott Finegan, a managing director at Pfingsten. “Crane 1 now has 21 facilities across 15 states covering the Midwest, Mid-Atlantic and Southeastern United States.”
“Pfingsten invested heavily into our business infrastructure early in the ownership period,” said Mr. Vevoda. “Their focus on management, facilities, systems, safety and training allowed us to scale our services platform and quickly integrate strategic add-on acquisitions.”
“The Crane 1 team did an outstanding job executing the strategy,” said Denny Bolzan, a managing director at Pfingsten. “We wish Bob and his team continued success as they expand the platform nationally and consolidate the $3 billion overhead crane industry.”
According to L Squared, Crane 1 is one of the largest overhead crane MRO services and equipment companies in the United States and it will serve as a platform for the firm to consolidate the fragmented $3 billion overhead crane MRO market.
“L Squared is excited to begin our partnership with the Crane 1 team. The company is well-aligned with our investment strategy given that it operates in a highly fragmented market where demand is driven by both regulation and critical need for safety,” said Sean Barrette, a partner at L Squared. “We look forward to continuing Crane 1’s strong momentum in consolidating the industry and serving customers across a broad set of end markets.”
L Squared invests from $20 million to $100 million of equity in companies that have revenues of $10 million to $100 million and EBITDA of $3 million to $25 million. Sectors of interest include tech-enabled services and software, and industrial technology and services. L Squared was founded in 2014 and is headquartered in Newport Beach, California.
In September 2020, L Squared closed its oversubscribed third fund, L Squared Capital Partners III LLC, with $505 million of capital. The buy of Crane 1 is L Squared’s second platform investment for this fund.
Chicago-based 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 147 such companies – including 50 platforms – through five funds with total commitments of $1.3 billion.
Piper Sandler & Co. was the financial advisor to Crane 1 on this transaction.
© 2021 Private Equity Professional | August 20, 2021
