Turnspire Capital Partners has acquired Swanson Industries, a provider of hydraulic equipment used in mining and industrial applications, from AEA Investors.
Swanson’s products include hydraulic cylinders, pumps and motors, valves and manifolds, hoses and fittings, and power units. Swanson also provides remanufacturing and repair services – chrome plating, friction welding, laser cladding, and machining – that restores damaged hydraulic cylinders to prime working condition.
Morgantown, West Virginia-headquartered Swanson, led by CEO Steve Sangalli, has 385,000 square feet of manufacturing space between three production facilities in the United States. The company was founded in 1964 as the Swanson Plating Company and adopted the Swanson Industries name in 1999. AEA Investors and Manulife Investment Management acquired Swanson in October 2012.
“Turnspire’s investment in Swanson is a significant step forward that positions our business for strategic growth,” said Mr. Sangalli. “Our entire team is excited to collaborate with Turnspire, which has a long and consistent track record of operational excellence. Together with Turnspire, we will execute a strategic plan that builds on our market leading positions through growth, innovation, and product development, benefitting our customers, suppliers, and employees.”
The buy of Swanson includes its controlling stake in Tiefenbach North America, a provider of hydraulic controls and hose assemblies used in mining, energy, and industrial applications that was acquired by Swanson in November 2022. In addition to its West Virginia-headquarters, Tiefenbach has additional locations in Illinois, Utah, and Alabama.
“Swanson has been an industry leader for decades, and we are excited to partner with management to further strengthen its market position,” said Abel Osorio, a partner at Turnspire. “The company’s products and services play a pivotal role in driving the production of critical minerals and energy resources, enabling the growth of the global economy. We believe that Turnspire’s experience in new market development and operational transformation, combined with our committed financial resources, will enhance Swanson’s capabilities as it continues to provide its customers with quality products and excellent service.”
Turnspire invests in North America-based companies with revenues between $50 million and $400 million, and positive or negative EBITDA. The firm specializes in corporate carve-outs, family ownership transitions, companies in financial or operational distress, complex and multi-constituent transactions, and out-of-favor or misunderstood industries. In December 2023, Turnspire held a hard cap closing of Turnspire Value Fund II LP with $275 million of capital commitments. New York City-based Turnspire was co-founded by Managing Partner Ilya Koffman in 2013.
AEA invests across three sectors – value-added industrials, consumer, and services – and has 70 investment professionals at its headquarters in New York City with additional offices in Connecticut, London, Munich, and Shanghai. AEA was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co.
Macquarie Capital was the financial advisor to Turnspire on this transaction.
© 2024 Private Equity Professional | June 11, 2024
