Vance Street Capital has acquired System Seals, a Cleveland-based designer and manufacturer of high-performance sealing products.
System Seals specializes in designing and manufacturing proprietary, high-performance sealing products that require high compliance, material, performance, or tolerance requirements, particularly for systems with high failure costs.
System Seals’ products are used widely in manufacturing, energy, and industrial equipment applications and include hydraulic seals for use in heavy machinery, rotary seals for high-speed applications, and elastomeric seals designed for demanding environments.
These products are crafted from advanced materials such as polytetrafluoroethylene (PTFE) for low-friction performance, perfluoroelastomers (FFKM) for superior chemical resistance, and polyether ether ketone (PEEK) for resilience in high-temperature and high-pressure conditions.
System Seals was founded in 1995 by CEO Arnold von Engelbrechten and is headquartered in Cleveland, Ohio. Mr. von Engelbrechten will retain a significant ownership stake in the company in partnership with Vance Street and he will continue to lead the company alongside the existing management team.
“On behalf of the entire System Seals team, we couldn’t be more excited to begin this next chapter with Vance Street,” said Mr. von Engelbrechten. “This partnership allows us to continue positive momentum in the business, both organically and through M&A. Vance Street brings a complementary, growth-oriented mindset geared toward fine-tuning our product innovation and supporting the management team, which is a perfect fit for our organization.”
“The System Seals team has built a unique, differentiated platform of scale in the sealing market with highly technical engineering capabilities and longstanding customer relationships,” said Nic Janneck, a partner at Vance Street. He added, “Partnering with successful and passionate entrepreneurs is a core focus at Vance Street; we look forward to supporting the company’s continued growth.”
The buy of System Seals is Vance Street’s third platform investment for its fourth fund following the November 2024 acquisition of Prince Sterilization Services, a New Jersey-based provider of contract medical device sterilization services, and the September 2024 acquisition of Pro-Vision, a Michigan-based provider of video monitoring products and services for commercial, K-12 transit, and public safety sectors. Vance Street’s fourth fund closed at its hard cap of $775 million in May 2024.
“With Vance Street’s support and capital, we will work with the System Seals team to enhance the company’s product development pipeline to further penetrate existing end markets and expand into new ones while also targeting strategic M&A opportunities,” said Yousaf Tahir, a principal at Vance Street.
Vance Street, headquartered in Pacific Palisades, Los Angeles, makes control investments in North American companies with enterprise values between $30 million and $350 million and EBITDA of $3 million to $30 million. Key sectors include medical technology, life sciences, industrial technology, and aerospace & defense.
EdgePoint Capital Advisors was the financial advisor to System Seals, and debt financing for the acquisition was provided by BMO.
© 2024 Private Equity Professional | December 17, 2024
