Comvest Partners has closed the sale of Systems Control, a manufacturer of substation control systems, to publicly traded Hubbell at an enterprise value of $1.1 billion.
Comvest acquired System Control in March 2018 from David Brule, the majority shareholder of Systems Control.
Systems Control specializes in engineering and manufacturing of equipment enclosures, control and relay panels, and turnkey systems used in electrical transmission and distribution substations across North America. The company also provides a range of support services including design, installation, integration, testing and control.
Systems Control operates from a 400,000 sq. ft. manufacturing facility in the upper peninsula of Michigan in Iron Mountain, Michigan. The company’s revenues for 2024 are estimated at $400 million and the $1.1 billion purchase price represents a 12x valuation multiple based on $91.6 million of projected 2024 EBITDA.
Systems Control was founded in 1962 as a division of Iron Mountain, Michigan-based MJ Electric and was spun out as an independent company in 2000 when MJ Electric was acquired by Exelon Infrastructure Services, a subsidiary of Exelon Corporation. Today, MJ Electric is owned by publicly traded Quanta Services (NYSE: PWR).
During Comvest’s 5.5 year ownership term, Systems Control expanded its manufacturing facility, developed multi-site production capabilities, and invested in information technology systems, human capital development, and sales and marketing.
“This successful outcome highlights Comvest’s expertise in helping companies achieve their growth objectives as well as our investment leadership in the infrastructure services space. We are excited for Systems Control’s future as part of Hubbell,” said Maneesh Chawla, a managing partner at Comvest.
“Comvest supported Systems Control’s vision for growth throughout our partnership, providing both capital and invaluable support key to the achievement of our desired growth milestones,” said Brad Lebouef, the chief executive officer at Systems Control. “We are appreciative of Comvest’s stewardship and look forward to our next chapter with the terrific team at Hubbell.”
“Comvest invested in Systems Control in partnership with management with a shared vision of scaling the company as a best-in-class turnkey provider of end-to-end substation control solutions. We are proud of the great relationship we built with the Systems Control team and the successes we achieved together,” said Kenny Nickens, a vice president at Comvest.
Hubbell (NYSE: HUBB) is a manufacturer and supplier of electrical and utility products. The company’s electrical segment provides wiring devices, lighting fixtures, and controls for residential, commercial, industrial markets; and its utility segment supplies products and services to the power transmission and energy distribution industry. Hubbell, with FY 2022 revenues of $4.9 billion, was founded in 1888 and is headquartered Near New Haven in Shelton, Connecticut.
“This acquisition enhances Hubbell Utility Solutions’ industry-leading franchise across utility components, communications and controls,” said Gerben Bakker, Hubbell’s chairman, president and chief executive officer. “Systems Control has a strong track record of financial performance and is highly complementary to Hubbell’s portfolio, enabling us to deliver additional value to our core utility customers while enhancing our overall growth and margin profile for shareholders.”
Comvest Partners provides both debt and equity to middle-market companies. For equity investments, Comvest invests from $50 million to $150 million of equity per transaction in companies with $50 million to $1 billion of revenue that have positive or negative EBITDA. Sectors of interest include business services, consumer and retail, healthcare services, industrials, and transportation and logistics. Comvest was founded in 2000 and is based in West Palm Beach with additional offices in Chicago and New York City.
Harris Williams and Lincoln International were the financial advisors to Systems Control, and Morgan Stanley was the financial advisor to Hubbell.
© 2023 Private Equity Professional | December 15, 2023
Clayton Dubilier & Rice has agreed to acquire Shearer’s Foods, a contract manufacturer and private label supplier of snacks, from Ontario Teachers’ Pension Plan (Teachers).
“Over the past decade, we have been proud to partner with the Shearer’s management team as it established itself as a market leader in North America for private label and contract manufactured salty snacks, cookies and crackers. Shearer’s has achieved this position by consistently delivering high-quality and innovative products, while expanding its market presence,” said Raymond Shiu, a managing director at Teachers.
New York and London-based 
“We have strong conviction in the differentiated manufacturing capabilities and category management the company provides, and our goal is to support the team in further scaling operations and capturing the many opportunities ahead to better serve Shearer’s customers,” said J.L. Zrebiec, a CD&R partner.
Headquartered in Toronto, 
Harvest Partners has acquired Road Safety Services from Parallel49 Equity.
“We have been pursuing infrastructure services, and within that roadway safety services, as a priority sector for several years and believe RSS is a premier competitor in the industry,” said Stephen Fessler, a partner at Harvest. “Customers value RSS’s professionalism, commitment to service excellence, responsiveness, and scale, and we are excited to be partners with the company through its next phase of growth.”
“We are thrilled to partner with Mike and the entire RSS team,” said Stephen Carlson, the president of Harvest Private Equity. “We think they have built an excellent company, and we look forward to providing additional financial and strategic resources to help them further build their market leadership through both organic and in-organic initiatives.”
New York City-headquartered Harvest was founded in 1981 and is an active investor in companies with $300 million to $5 billion of enterprise value, $100 million to $3 billion of revenue, and $30 million to $300 million of EBITDA, which are active in the business and industrial services, consumer, industrials, healthcare and software sectors. Last month, Harvest closed its ninth fund, Harvest Partners IX LP, with an above target $5.3 billion of capital commitments. The firm’s new fund is 30% larger than the firm’s 2019 and fully invested $4.1 billion eighth fund.
TAS Environmental Services (TAS), a portfolio company of Blue Point Capital Partners, has added on with the buy of Environmental Concepts & Services (ECS). Blue Point acquired TAS, a provider of environmental and industrial services, in May 2019 from TEAM Partners.
“ECS is the perfect complementary fit to the TAS platform, aligning well in culture, vision and a dedication to customer service and satisfaction,” said Sean Ward, a partner at Blue Point. “The partnership will enhance TAS’ operations, adding additional wastewater and waste treatment capabilities to the platform’s already extensive service offerings, and building on our mission of being the provider of choice in the environmental services sector.”
“This partnership is a continuation of the value creation strategy the Blue Point and TAS teams committed to from the outset — to expand the platform’s footprint and capabilities through strategic M&A and organic value creation while preserving its commitment to excellent service,” said Charley Geiger, a partner at Blue Point. “We are honored to work alongside the TAS and ECS teams to assist in fostering their ongoing success.”
