Boston-based Bunker Hill Capital has acquired ASPEQ Heating Group, a maker of electric-heating and thermal-management products. In addition to capital provided by Bunker Hill Capital and other co-investors, John Eulich – the majority owner of ASPEQ – and other members of the senior management team invested meaningful equity in the transaction.
ASPEQ Heating Group is a manufacturer of both customized and standard design electric-heating and thermal-management products which are sold under the INDEECO, Heatrex and AccuTherm brands. The company’s product portfolio is comprised of thousands of products under approximately 30 product categories that address virtually every electric-heating application across nearly every industrial process and commercial end market. ASPEQ was founded by John Eulich in 2008 and is headquartered in St. Louis (www.aspeqheating.com).
INDEECO, which was founded in 1929, was acquired by ASPEQ in 2008 as a platform for acquisition. The company subsequently integrated two add-ons acquisitions – Heatrex in 2010 and AccuTherm in 2011. From the combination of these three businesses, ASPEQ consolidated four facilities into two flexible and vertically integrated manufacturing facilities.
“ASPEQ represents a very stable, diversified business with ’sticky’ customer relationships,” said Rufus Clark, Managing Partner of Bunker Hill Capital. “We’ve been impressed by the company’s ability to execute an acquisition strategy, pursue operational efficiencies, and drive further margin expansion while growing the overall business. ASPEQ is well positioned for future growth.”
Bunker Hill makes control investments in lower middle market companies with EBITDAs between $5 million and $20 million, and enterprise values up to $120 million. Sectors of interest include industrial products, business services, consumer products, and specialty retail. The firm has offices in Boston and San Diego (www.bunkerhillcapital.com).
“ASPEQ’s management team, work force, and engineering talent are all dedicated to manufacturing the industry’s most technologically advanced heating solutions,” said Mark DeBlois, Managing Partner of Bunker Hill Capital. “The company’s commitment to its customers is evidenced by its ability to produce highly engineered, customized heating technologies. We are very excited to partner with CEO Mike Howard and his team in scaling the business to its next level of growth.”
Mike Howard, CEO of ASPEQ, believes that Bunker Hill is an ideal partner. “Bunker Hill Capital will help us achieve the next phase of higher growth for ASPEQ. We look forward to continuing to build the ASPEQ platform through our network of sales reps and customer relationships as well as by entering new end markets. We believe that together with Bunker Hill Capital’s strategic and operational insight we can grow our leadership position within the heating solutions market.”
This is the fourth investment made by Bunker Hill from its second fund, Bunker Hill Capital II LP, with $200 million in capital commitments. Fund II closed in January 2011. Bunker Hill Capital was joined in the transaction with equity, senior debt, and subordinated debt investments from management, Abacus Finance Group, Madison Capital Funding, BB&T Capital Partners and BMO Mezzanine Fund.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-1-15