Falfurrias Capital Partners has acquired EDGE Industrial Technologies, a producer of industrial machine knives, blades, and punches, from Blue Wolf Capital Partners which is maintaining a minority equity interest in the company.
EDGE was formed by Blue Wolf in 2018 to consolidate its investments in Pearl Technologies and TGW. Pearl Technologies, a New York-based manufacturer of consumable parts for converting and extrusion capital equipment, was acquired in 2011; and TGW, a United Kingdom-based manufacturer of industrial knives, was acquired in 2018. In 2021, EDGE added-on with the acquisition of Leverwood Knife Works, a Pennsylvania-based maker of custom and standard industrial knife blades.
Today, EDGE’s products include industrial machine knives and blades, industrial punches, and other related equipment which are used in packaging, processing, converting, print, and general industrial applications. The company’s products are made from carbon steel, stainless steel, powdered metal, tungsten carbide, and ceramics. EDGE is headquartered eight miles south of Cincinnati in Wilder, Kentucky, with additional manufacturing facilities in Pennsylvania, New York, the United Kingdom and India.
At the closing of this transaction, Falfurrias named Josh Slagle as the new CEO of EDGE. Mr. Slagle is a former senior manager of SPX Flow, a North Carolina-based maker of machinery and equipment used in the food, beverage, and industrial sectors for mixing and blending, fluid handling, separation, and thermal heat transfer. SPX Flow is a current portfolio company of Lone Star Funds.
“I am honored to join the highly talented EDGE team,” said Mr. Slagle. “As a driving force in the industry, EDGE has a long history of excellence in quality, technical expertise, and customer service. I am confident that we will build upon that legacy together and significantly expand EDGE’s presence with customers across food processing, packaging, and other served markets. With the combination of EDGE’s strong foundational capabilities and Falfurrias’ added support, the road ahead for the organization is extremely promising.”
“EDGE’s commitment to world-class quality, precision, and innovation makes it an optimal platform for growth,” said Ken Walker, a partner at Falfurrias. “We look forward to reinforcing these capabilities and continuing their mission to provide industry-leading cutting solutions to a meaningful and growing customer base.”
Charlotte-headquartered Falfurrias was founded in 2006 by Hugh McColl Jr., former chairman and CEO of Bank of America, Marc Oken, former CFO of Bank of America, and Managing Partner Ed McMahan. In September 2021, Falfurrias closed its oversubscribed fifth fund, Falfurrias Capital Partners V LP, with $850 million of capital, and in December 2023 the firm closed its first dedicated growth buyout fund, Falfurrias Growth Partners I LP with $400 million of capital commitments. Falfurrias’ growth strategy invests in companies that have a track record of success but require capital and operational expertise to accelerate revenue and EBITDA growth; and its buyout strategy invests in middle-market companies that have EBITDA from $5 million to $40 million.
“Blue Wolf has been invested in EDGE’s success and has helped the company grow, expand, and deepen its capabilities over the last several years,” said Aakash Patel, an EDGE board member and a partner at Blue Wolf. “Falfurrias has a wealth of experience that will be invaluable to the EDGE team, specifically in the food space, where the market continues to surge. With Falfurrias’ partnership and a continued focus on growth and new resources, EDGE is well-positioned for success.”
New York City-headquartered Blue Wolf invests from $25 million to $250 million of equity in companies that have at least $50 million of revenue and an enterprise value of $50 million to $500 million. Sectors of interest include healthcare, building products, energy services, manufacturing, distribution, and general industrial.
© 2024 Private Equity Professional | June 11, 2024
