Shorehill Sells Belt Power to Platte River Equity
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Shorehill Sells Belt Power to Platte River Equity

Under Shorehill's eight-year ownership, Belt Power grew significantly and expanded from 3 locations to 12 locations through both new branch openings and add-on acquisitions

Belt Power distributes and fabricates numerous products including metal and thermoplastic grabber belts, ribbed belts, top chains, timing belts, roller covers and other conveyor accessories

SOURCE: Getty Images

After an eight-year hold, Shorehill Capital has sold Belt Power to Platte River Equity.

Platte River completed the acquisition in partnership with Belt Power’s existing management team and Shorehill will retain a minority equity interest in the business.

Belt Power distributes and fabricates numerous products including metal and thermoplastic grabber belts, ribbed belts, top chains, timing belts, turn belts, v-belts, roller covers and various conveyor accessories including rubber, hose and gasket products. The company also offers a range of support services including conveyor belt analysis, fabrication, installation, and repair.

[Source: Belt Power]
The customers of Belt Power – totaling more than 3,000 – include end users, OEMs and as well as conveyor system integrators that are active in the food processing, packaging, material handling, paper and corrugated, pharmaceuticals, and other light industrial sectors.

Belt Power, founded in 1989 and led by CEO Don Heitmeier, has 12 locations and, according to the company, is the largest independent lightweight conveyor belting and automation products platform in the United States. The company is headquartered near Atlanta in Marietta, Georgia.

Shorehill acquired Belt Power, a distributor and fabricator of lightweight conveyor system components, in September 2014 from Gen Cap America. Belt Power has grown significantly since Shorehill’s original investment, expanding from 3 locations to 12 locations through both new branch openings and add-on acquisitions.

“The Shorehill team has been a great partner for Belt Power,” said Mr. Heitmeier. “They assisted us in developing a vision, and then gave us the tools and resources to make that vision a reality. They helped us build a solid organizational foundation as well as a roadmap to continued profitable growth. We are grateful for their support, and we look forward to continuing our Shorehill relationship as we embark on our partnership with Platte River.”

“The Belt Power team has been relentless in their pursuit of excellence,” said Dave Hawkins, a managing partner at Shorehill. “In our eight-year partnership with the team, we jointly accomplished a great deal in the areas of strategic growth, human capital enhancements, and performance improvements.”

Chicago-based Shorehill Capital makes control investments in North American-based middle market companies that have from $3 million to $15 million in EBITDA. Sectors of interest include engineered industrial products, industrial services, and value-added distribution. The firm was founded in 2013 by its managing partners Brian Simmons and Dave Hawkins, both former senior executives of CHS Capital.

“Our collaboration with the Belt Power team has been seamless, and they have been outstanding partners in our shared success,” said Rob Hogan, a managing director at Shorehill. “We look forward to supporting the team as they continue to drive long-term value creation in the years ahead.”

Denver-based Platte River makes equity investments of $25 million to $100 million in lower middle-market companies with annual revenues of $20 million to $250 million and EBITDA from $7 million to $30 million. Sectors of interest include aerospace and transportation; energy products and services; industrial products and services; and agriculture and chemicals.

Baird and Prestwick Advisors were the financial advisors to Belt Power and Shorehill on this transaction.

© 2022 Private Equity Professional | August 25, 2022

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