LOFA Industries manufactures engine controls, wire harnesses and other accessories that are sold to high and low-volume manufacturers of off-highway engine driven equipment. The company’s products are known for making complicated electronically governed engines easy to use and maintain, and provide reliable performance, especially in heavy-duty and rugged applications such as irrigation, forestry, construction, and mining. LOFA Industries was founded in 1989 by Hans and Peter Herbrand and is based north of Atlanta in Roswell, GA (www.lofa.net).
“LOFA is a leader in the growing market for industrial controls, and we are pleased and excited to make this investment,” said Peter Cureton, Managing Partner of Hunters Gate. “Control systems are becoming more complex and more important, providing key data to equipment owners and allowing them to operate, monitor and protect their assets more effectively. We look forward to supporting LOFA’s terrific management team as they pursue a strategy of continued growth through industry-leading innovation as well as synergistic acquisitions.”
Hunters Gate Holdings invests in Southeast-based lower middle-market companies that have EBITDAs of $1 million to $10 million. Sectors of interest include industrial, energy & power, and business services. Hunters Gate has offices in Atlanta and Charlotte (www.huntersgateholdings.com).
The senior management team of LOFA – led by CEO Stephen Rary and OEM Sales Manager Frank Norris – co-invested in the transaction and will own approximately 20% of the company’s fully diluted equity. “The entire LOFA team looks forward to working with our new investors at Hunters Gate,” said Mr. Rary. “We plan to focus on our growth initiatives and on strategic acquisitions that will broaden our product lines and end markets.”
Kian Capital Partners and Georgia Commerce Bank provided debt financing for the transaction. Kian Capital manages a $150 million SBIC- licensed fund that invests along-side private equity firms, independent sponsors, management teams, and business owners. Kian invests from $5 million to $15 million in Southeast-based companies that have revenues of $15 million to $150 million and EBITDAs of $2 million to $15 million. Sectors of interest include business services, distribution and logistics, healthcare services, and niche manufacturing. The firm has offices in Charlotte and Atlanta (www.kiancapital.com).
LOFA was advised by Matt Slappey of Murphy Business & Financial Corporation, a business broker based in Clearwater, FL (www.murphybusiness.com).
2015 PEPD • Private Equity’s Leading News Magazine • 4-30-15