Gen Cap America has sold L.W. Allen to S.J. Electro Systems (SJE), a portfolio company of Audax Group.
L.W. Allen designs, manufactures, distributes, installs and integrates water and wastewater control systems – including industrial and heavy-duty pumps, motors, slide gates, and complete pump stations – to municipal and industrial customers. The company’s Altronex-branded electrical control systems – including hardware and software – are used by operators to control water and wastewater systems. L.W. Allen, led by President Jim Cook, was founded in 1961 and is headquartered in Madison, Wisconsin.
“We are gratified by how far L.W. Allen has come over the last several years, especially given the challenges of the last eighteen months, and we appreciate Gen Cap’s unwavering support and guidance on our growth and improvement initiatives,” said Mr. Cook. “We look forward to joining the SJE family to continue our track record of success.”
“We are pleased to complete the sale of L.W. Allen,” said Matt Lane, a managing director at Gen Cap. “During our ownership, we worked closely with the L.W. Allen team to drive operational improvements, invest in technological upgrades, and facilitate growth initiatives. We have sincerely enjoyed supporting the team and business since our initial investment in 2015, and we are confident that L.W. Allen will continue to prosper as a part of SJE.”
Audax acquired S.J. Electro Systems (SJE), a manufacturer of controls used in the water and wastewater industry, in June 2021.
SJE’s products – sold under the CSI Controls, Primex, and SJE Rhombus brands – include standard and custom control panels, septic tank alarms, float switches and other accessories used in residential, commercial, and municipal water and wastewater applications. SJE produces more than 70,000 control panels per year, from $200 panels to multi-million dollar projects.
SJE was founded in 1975 by Steve Johnston in Detroit Lakes, Minnesota and today, led by CEO Dave Thomas, has 7 locations in Minnesota (3), Ohio, California, Florida, and China.
Gen Cap America invests in companies with revenues between $10 million and $200 million and EBIT of $2 million to $15 million that are active in the manufacturing, distribution, or service sectors. Gen Cap was founded in 1988 and is based in Nashville.
Audax invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.
© 2021 Private Equity Professional | August 10, 2021
