Archives for January 6, 2025

Vance Street Capital has acquired Fumex Air Filtration Systems, a manufacturer of fume extraction equipment.

Fumex designs and manufactures air filtration equipment for applications requiring precise control of hazardous airborne particulates and chemicals. The company’s product lineup includes portable fume extractors, self-cleaning cartridge systems, and specialized units for laser engraving and 3D printing environments.

These products are used in industries such as healthcare, electronics, and additive manufacturing to capture fumes from processes like soldering, plastic welding, and laser cutting. Founded in 1986, Fumex is led by CEO Kevin East and is headquartered in Kennesaw, Georgia, northwest of Atlanta.

“This partnership will allow us to invest in the business and drive growth both organically and through M&A,” said Mr. East. “On behalf of the entire Fumex team, we couldn’t be more excited to begin this next chapter with Vance Street.”

“Over the last 20-plus years, Kevin and his team have built a highly differentiated company,” said Nic Janneck, a partner at Vance Street. “With Vance Street’s additional support and capital, Fumex will be able to invest in the business, accelerate its new product development, and continue to provide its customers with sought-after solutions.”

Fumex is the fourth platform investment for Vance Street Capital IV LP, which closed in May 2024 with $775 million in capital.

The acquisition of Fumex follows Vance Street’s December 2024 purchase of System Seals, a Cleveland-based designer and manufacturer of high-performance sealing products. System Seals specializes in applications requiring high compliance, performance, or tolerance standards, particularly for systems with high failure costs. Its products include hydraulic, rotary, and elastomeric seals, utilized in manufacturing, energy, and industrial equipment applications.

Other recent acquisitions by Vance Street include Prince Sterilization Services, a New Jersey-based provider of contract medical device sterilization services, and Pro-Vision, a Michigan-based provider of video monitoring products and services.

“We are excited to partner with Kevin and his team to further penetrate existing end markets, broaden the product portfolio, and target strategic M&A opportunities,” said Yousaf Tahir, a principal at Vance Street.

Headquartered in Pacific Palisades, Los Angeles, Vance Street Capital makes control investments in North American companies with enterprise values between $30 million and $350 million and EBITDA of $3 million to $30 million. Key sectors of focus include medical technology, life sciences, industrial technology, and aerospace & defense.

Lincoln International served as the financial advisor to Vance Street on this transaction. Fidus Capital provided debt financing to support the acquisition.

© 2025 Private Equity Professional | January 7, 2025

Highlander Partners has acquired Ergo Baby from publicly traded Compass Diversified.

Ergobaby specializes in ergonomic juvenile products, including baby carriers, strollers, wraps, and nursing pillows. The company’s product offerings include the Omni 360 Baby Carrier, which allows for multiple carrying positions, and the Metro+ Stroller, a compact travel stroller that fits in airplane overhead bins and is designed for city streets.

Ergobaby’s product lines are organized into three key brands: Ergobaby, known for versatile and durable baby carriers like the Adapt and Omni series; Tula, renowned for carriers that showcase artisanal prints and customizable sizing; and Belly Bandit, focused on maternity and postpartum care with recovery belts, leggings, and nursing bras.

Ergobaby, led by CEO Jason Frame, was founded in 2003 and is headquartered in Los Angeles, The company operates in more than 75 countries, reaching customers through 1,800 retail locations.

“We are excited about the new partnership with Highlander and will benefit from their expertise within branded consumer products,” said Mr. Frame. “The management team is energized, and our pipeline is full of new opportunities. Our brands enjoy exceptional consumer awareness, and we are well-positioned to continue our historical success in the foreseeable future.”

“This acquisition further emphasizes Highlander’s focus on investing in category-leading branded consumer product companies,” said Jeff Hull, the president and CEO of Highlander. “As the #1 baby carrier brand globally, Ergobaby has tremendous growth opportunities driven by product innovation, market expansion, and increased consumer awareness. In addition, we have a strong track record of implementing a ‘buy and build’ approach with our investments and see significant M&A opportunities that would complement Ergobaby’s parenting portfolio and business strategy to better serve its customers in the broader juvenile products market.”

Dallas-headquartered Highlander Partners uses a “buy and build” investment strategy that invests in businesses operating in sectors where its principals have expertise, including consumer products, food, and manufacturing.

Compass Diversified (NYSE: CODI) is a private equity firm specializing in acquisitions, buyouts, and middle-market investments. The firm invests between $75 million and $700 million in companies that have EBITDA of at least $10 million. Sectors of interest include niche industrial or branded consumer companies that are headquartered in North America. Compass went public in 2006 and is based in Westport, Connecticut.

Robert W. Baird was the financial advisor to Compass Diversified on this transaction.

© 2025 Private Equity Professional | January 7, 2025

Guardian Capital Partners has acquired Team LINX, a Denver-based provider of technology-related infrastructure services.

LINX delivers a range of technology infrastructure products and services, including structured cabling, wireless networks, audiovisual systems, and security platforms such as access control and surveillance. Its customer base includes data centers, hospitals, financial institutions, and schools.

Since its founding in 2003, LINX has completed over 100,000 projects nationwide, with a total contract value exceeding $1 billion. These projects have included deploying high-capacity fiber optic networks for data centers, integrating telehealth video systems for healthcare facilities, and designing secure networks for financial services clients. Team LINX is led by CEO Erik Isernhagen and COO Jay Dzialo.

The acquisition of Team LINX follows Guardian’s June 2024 exit from Direct Line Global (DLG) through a sale to CBRE Group. DLG provides consultation, design, and installation services for data centers, mixed-use facilities, and server rooms. Its offerings include network infrastructure deployment, fiber optic installations, outside-plant cabling, and post-installation management services, such as maintenance, technology upgrades, retrofits, and operational support.

“We are eager to embark on this next phase of our journey and view Guardian as the ideal partner to support our continued development,” said Mr. Isernhagen. “Not only does Guardian bring deep sector expertise, but our firms share a collaborative culture and strategic vision primed for delivering continued investment and powerful results for our stakeholders.”

The acquisition of Team LINX highlights private equity’s growing focus on digital infrastructure as demand for data capacity surges. With advancements in artificial intelligence, cloud computing, and Internet of Things (IoT) technologies, companies such as LINX and DLG are positioned to thrive by enabling scalable and secure IT environments. Increased reliance on remote work, telemedicine, and e-learning further underscores the need for robust and reliable technology infrastructure. Earlier this week, Microsoft announced plans to spend $80 billion in fiscal 2025 on the construction of data centers capable of handling artificial intelligence workloads. Over half of this spending will occur in the United States.

“Our acquisition of LINX represents another compelling opportunity for Guardian to invest in a business that is well-positioned to capitalize on the attractive digital infrastructure sector,” said Scott Evans, a co-founder and managing partner at Guardian. “We believe the sector continues to benefit from the secular trend of data proliferation and required capacity to fuel core services and advanced computing applications such as artificial intelligence.”

“Guardian’s operational playbook enables us to take our well-developed capabilities to the next level as we support our customers and teams at scale,” concluded Mr. Dzialo.

Guardian Capital Partners makes control investments in lower middle-market private companies primarily located in the United States. The firm targets businesses with annual revenues between $20 million and $120 million and EBITDA between $4 million and $15 million. Sectors of interest include consumer products, niche manufacturing, and specialty business services.

Guardian’s most recent fund, Guardian Capital Partners III, closed at $282 million in February 2022. Founded in 2008, Guardian is headquartered in the Philadelphia suburb of Wayne, Pennsylvania.

© 2025 Private Equity Professional | January 7, 2025