Benford’s Buy of BSC Continues Family-Focused Strategy

Benford’s Buy of BSC Continues Family-Focused Strategy

Owners of the 104-year-old company selected Benford for its supportive experience with family-owned companies

BSC specializes in bearings and power transmission products, electrical and automation products, integrated control systems, and value-added engineering, lubrication and sub assembly services.

SOURCE: Getty Images

Benford Capital Partners has acquired BSC Industries, a value-added distributor of industrial automation and motion control products.

BSC’s products include controls, motors, bearings, power transmission, electrical and automation products. The company’s national and international customers include OEMs and MROs operating in the food and beverage processing, packaging, medical equipment, biotechnology, printing, material handling, and transportation sectors.

Source: BSC Industries

BSC was founded in 1919 (the “BSC” stands for Bearings Specialty Company) and is headquartered near Boston in Canton, Massachusetts, with six additional locations across New England in Vermont, Connecticut, Maine, New Hampshire, Rhode Island, and Massachusetts.

Benford partnered on this transaction with brothers Jim and Peter Fitzpatrick, who have owned and led BSC for over 30 years. Peter will continue as CEO, while Jim will step away from his day-to-day management role after a transition period.

“Our family has owned BSC for two generations and my brother and I felt the time was right to bring in a new investment partner for future growth,” said Jim Fitzpatrick. “We chose Benford due to their experience scaling family-owned companies as supportive stewards.”

“BSC has developed long-tenured customer relationships by providing unique solutions through its product expertise and excellent customer service,” said Edward Benford, a managing director of Benford. “We are excited to partner with the BSC team, and to bring additional resources to the company to accelerate growth.”

Post closing, Benford will support BSC’s organic growth through investment in ancillary products and services, sales execution, and operational capabilities. In addition, the company will actively pursue add-on acquisitions of related value-added distributors of industrial components sold to OEM and MRO customers.

“With its more than 100-year history, BSC is a great company with an impressive track record of growth,” said Brendan Green, a principal at Benford. “We look forward to partnering with Peter to execute our value creation plan and build upon BSC’s successful foundation.

The acquisition of BSC is the third platform investment for Benford’s second fund, Benford Capital Partners II LP, which closed at its hard cap in May 2022 with $200 million of limited partner capital.

The two earlier platform acquisitions were Legacy Bakehouse, a Wisconsin-based and family-owned developer and manufacturer of baked snack ingredients, including bagel chips, rye chips, pita chips, and other ingredients, that was acquired in April 2023.

In August 2022, Benford acquired Gum Products International, an Ontario-based and family-owned business-to-business food ingredients company that specializes in hydrocolloid blends (mixtures of substances used in food and drink products to improve texture, stability, and other properties), vinegar-based antimicrobials, and other functional food ingredients and processing agents.

Chicago-based Benford invests in lower middle-market companies that have revenues from $5 million to $100 million and EBITDA from $1 million to $10 million. Sectors of general interest include industrial technology, consumer products and food, B2B e-commerce, and agricultural products and services. Since its founding in 2004, Benford has acquired over 40 companies and currently owns 16 platform companies.

© 2023 Private Equity Professional | August 4, 2023

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