Wynnchurch Capital has acquired Principal Industries, a provider of LED components and engineered assemblies, from Valesco Industries which acquired the company in January 2018.
Principal Industries designs and manufactures LED products for signage and architectural branding illumination. The company’s product lineup includes LED modules, linear and edge lighting, power modules, drivers and controls, and custom-engineered assemblies for complex branding and lighting applications.
Founded in 2010 by Bryan and Blake Vincent, Principal is headquartered in San Angelo, Texas, located northwest of San Antonio. The company is led by CEO Todd Fiske, and its senior management team—including the founders—are partnering with Wynnchurch on this transaction.
“Our long-standing relationships with our customers, suppliers, and go-to-market partners have allowed us to execute transformative product developments and acquisitions,” said Mr. Fiske. “Wynnchurch understands our value proposition, and we are excited to partner with them to continue executing on our core mission: Simplifying the lives of our customers.”
According to Grand View Research, the LED lighting market is projected to grow at a compound annual growth rate (CAGR) of 12.4% through 2030. Key drivers for this growth include increased demand for smart lighting, the widespread adoption of LED technologies across commercial and industrial sectors, and heightened demand for architectural branding applications.
“Principal’s market leadership position is underscored by its unique value proposition, comprehensive product offering, intense focus on distributor and end-user success, and worldwide scale, allowing Principal to satisfy increasingly complex physical branding requirements,” said Brian Crumbaugh, a partner at Wynnchurch.
Wynnchurch Capital specializes in investing in middle-market companies with revenues ranging from $50 million to $1 billion. Its expertise includes recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. The firm focuses on sectors such as aerospace, defense, and government; building products and materials; consumer and food; manufacturing, industrial, and transportation; and business services and distribution.
“Principal’s track record of innovation and dedication to being a solutions provider to its customers align with the core tenets of a Wynnchurch partnership,” said Carl Howe, a managing director at Wynnchurch. “We are excited to have the opportunity to support the Company as it enters its next phase of growth.”
In January 2024, Wynnchurch closed its sixth private equity fund, Wynnchurch Capital Partners VI LP, with $3.5 billion in committed capital. Founded in 1999, the firm is headquartered near Chicago in Rosemont, Illinois.
Dallas-headquartered Valesco was founded in 1993 and is led by Bud Moore, Heather Hubbard and Jack Sadden. The firm makes control and non-control investments of equity and subordinated debt in United States-based companies that have from $15 million to $100 million in revenue, a history of profitability, and at least $3 million of cash flow. Sectors of interest include manufacturing, value-added distribution and business services.
“We thank Valesco for their partnership as we transformed the company into a recognized leader in the illuminated branding market,” said Bryan Vincent. “Their support was invaluable as we positioned the company for our next phase of growth.”
Citizens M&A Advisory was the financial advisor to Principal Industries on this transaction.
© 2024 Private Equity Professional | November 19, 2024
