BlackHawk Industrial Distribution, a portfolio company of Brazos Private Equity Partners, has completed the acquisitions of Packaging, Inc. and Pioneer Tool Supply, the 11th and 12th add-on acquisitions completed by BlackHawk since its formation by Brazos.
BlackHawk Industrial Distribution was formed by Brazos in 2010 in partnership with William Scheller, the former CEO and President of ORS Nasco, a wholesale distributor of industrial supplies and a portfolio company of Brazos that was sold to United Stationers in 2007. In September 2010 BlackHawk made is first acquisition with the purchase of Duncan Industrial Solutions (Oklahoma City, OK) and in December 2010 acquired Rogers Industrial Supply (Fort Smith, AR). Both Duncan and Rogers are distributors of name-brand industrial MRO supplies and equipment.
Packaging, Inc. is a distributor of packaging, fastening and strapping tools, machinery and other consumable packaging products to companies operating primarily in the Midwest region of the US. The company was founded in 1957 and is headquartered in Eden Prairie, MN (www.packinc.com).
Pioneer Tool Supply is a distributor of metalworking and cutting tools to companies operating primarily in the New England region. In addition to its distribution services, the company offers grinding for resharpening and reconditioning tooling. Pioneer Tool Supply was founded in 1948 and has facilities in Massachusetts, Connecticut, New Hampshire, and Maine. The company is headquartered north of Hartford, CT in Agawam, MA (www.pioneertool.com).
“We are excited to help BlackHawk complete these two highly complementary acquisitions,” said Randall Fojtasek, Co-Founding Partner and Co-CEO of Brazos and Chairman of BlackHawk. “BlackHawk’s successful growth is a great example of Brazos’ buy-and-build strategy. Since Brazos invested in BlackHawk in 2010, the company has made twelve acquisitions and has grown significantly, gained market share and consolidated its leadership in key product categories in the broader industrial distribution market.”
Today, BlackHawk is a top-30 distributor in the North American industrial supply market. The company focuses primarily on technical, recurring and consumable segments within industrial distribution, with an emphasis on the cutting tools and abrasives product category. BlackHawk serves more than 6,000 customers through a direct salesforce supported by a network of 25 sales locations. The company is headquartered in Tulsa (www.blackhawkid.com).
“Brazos has been a terrific sponsor for BlackHawk, guiding our organic and acquisitive growth and helping us build a great distribution platform,” said Bill Scheller, BlackHawk’s CEO and President. “We look forward to continuing to grow and enhance the company with Brazos’ assistance and with the support of our employees, customers, vendors and financing partners.”
Brazos makes equity investments of $25 million to $100 million in middle-market companies with enterprise values from $50 million to $500 million. Sectors of interest include consumer, healthcare, commercial & industrial, and business services. Brazos has approximately $1.4 billion of equity capital under management and is based in Dallas (www.brazospartners.com).
BlackHawk and Brazos are looking to acquire additional US-based distributors participating in the $400 billion industrial distribution end market.
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-9-15
