Hidden Harbor Capital Partners has acquired Avtron Power Solutions from ASCO Power Technologies, a division of publicly traded Schneider Electric.
Cleveland-headquartered Avtron is a designer and manufacturer of load banks that are used for the testing and measurement of backup power systems. Load banks are used to simulate stresses on emergency power systems to ensure functionality if there is a power grid failure.
Avtron products are sold under the Avtron, Formant, and SIGMA control platform brands.
Schneider Electric acquired Avtron Power Solutions as part of its $1.25 billion acquisition of ASCO Power Technologies in 2017.
“It was essential for us to find a partner with deep carve-out experience and one who shares our core values and vision for growth,” said Avtron’s CEO Bhavesh Patel. “I could not be more excited to partner with Hidden Harbor to usher in a new era in our rich history. We are especially excited to work with Hidden Harbor’s portfolio operations group, which has a proven track record of executing corporate carveouts and helping companies execute at all levels of the organization.”
“As a firm, we are very optimistic about the tailwinds supporting demand for reliable backup power systems, and about the opportunity to execute on several growth opportunities for Avtron as a standalone business,” said Christopher Paldino, a managing partner at Hidden Harbor. “We look forward to supporting the company’s continued growth and strong customer relationships.”
Boca Raton-based Hidden Harbor makes investments in North American-based companies across a range of sectors with revenues between $50 million and $500 million and EBITDA up to $25 million. Hidden Harbor was formed in May 2016 by John Caple, a former partner of Comvest Partners; David Block, the former CEO of Swiss Watch International and a former operating partner at H.I.G. Capital; and Christopher Paldino, a former managing director at H.I.G. Capital.
“We look forward to partnering with management to execute a comprehensive carve-out and growth strategy,” said Russell Kreutter, a principal at Hidden Harbor. “We believe that with Avtron’s expertise and Hidden Harbor’s resources, there is a clear path to achieve significant growth in key end markets and to expand the footprint globally.”
Hidden Harbor is investing out of its $450 million second fund which closed above its hard cap in January 2022. The buy of Avtron is Hidden Harbor’s fourth Fund II platform and its thirteenth platform investment overall.
Publicly traded Schneider Electric (SU: FP) is a multinational company that specializes in digital automation and energy management equipment. The company had revenues of $29.8 billion in 2021. Schneider Electric is headquartered near Paris in Rueil-Malmaison, France.
Raymond James was Hidden Harbor’s financial advisor and Alix Partners was the financial advisor to Schneider Electric. Czech Asset Management provided financing to support Hidden Harbor’s buy of Avtron with Configure Partners acting as Hidden Harbor’s financing advisor.
© 2022 Private Equity Professional | December 1, 2022
