MFG Partners and Merit Capital Partners have acquired Elgen Manufacturing Company, a maker of ductwork accessory products, in partnership with the company’s management team.
Elgen is a manufacturer of HVAC hardware, accessories and sheet metal parts used by HVAC contractors, fabricators, and resellers.
The company’s products – largely made from galvanized and stainless steel, and aluminum – include damper hardware, flanges, corners, cleats, access doors, vanes, pipes and fittings. The company is headquartered north of New York City in Closter, NJ.
“This transaction represents an exciting opportunity for our firm to assist Elgen as they pursue numerous product line and geographical growth initiatives in the HVAC industry,” said Evan Gallinson, a managing director at Merit. We are pleased to team up with MFG and management as we look forward to a highly successful partnership.”
Merit Capital invests subordinated debt and equity capital of $15 million to $60 million in companies with at least $4 million of EBITDA that are active in the manufacturing, distribution and services industries. The firm makes both control and non-control investments primarily in partnership with family-owned companies, existing owner-managers, and with independent sponsors – a strategy that continues to be highly attractive to Merit. Merit is led by its founding partners Terrance Ship and Marc Walfish and is based in Chicago.
Merit’s investment in Elgen was a combination of subordinated debt and equity and was made through the firm’s sixth fund which closed in April 2018 with $536 million of capital. Elgen is the fund’s 13th platform investment.
MFG Partners is an independent sponsor that makes control investments in North American-based industrial, manufacturing, distribution and business-to-business services companies that have enterprise values from $25 million to $100 million. The firm was founded in May 2016 by Jeff Mizrahi and Jonathan Schilowitz and is headquartered in New York.
© 2019 Private Equity Professional | October 30, 2019