Incline Equity Partners has sold Dorner Manufacturing, a maker and supplier of unit handling conveyors and components, to EQT Mid Market US.
Dorner’s conveyors and components are used to address the automation needs of companies operating in the industrial, packaging, food, medical and pharmaceutical end markets. The company also provides aftermarket parts and service support to its large installed base. Dorner has over 300 employees and is headquartered west of Milwaukee in Hartland, WI, with additional offices in the US, Canada, Mexico, Germany and Malaysia (www.dornerconveyors.com).
“Incline helped us achieve significant growth through enhancing the scope and profile of our business,” said Terry Schadeberg, Chief Executive Officer of Dorner. “They also guided us through strengthening our management team and internal processes to ensure that our growth was scalable. We are very appreciative of their tremendous support and efforts.”
Incline acquired Dorner Manufacturing in June 2012 and Dorner’s operations footprint expanded significantly during its ownership period. The company opened new facilities in Canada and Mexico to expand its North American footprint and Dorner also entered the European and Asian markets and expanded its product offerings through acquisitions in Germany and Malaysia.
“We couldn’t be more satisfied with the company’s transformation,” said Wali Bacdayan, a Partner at Incline. “In just over four years, the company has grown from a regional, family-owned conveyor business to become a global platform serving the broader industrial automation market. With that transformation came more jobs, an investment in the development of new products, expanded manufacturing capabilities and two international acquisitions.”
Incline invests from $15 million to $30 million in support of recapitalizations, buyouts and corporate divestitures of lower middle market companies that have EBITDAs greater than $5 million and enterprise values between $30 million and $150 million. Sectors of interest include value-added distribution, specialized light manufacturing, and business and industrial services. Incline was formed in 2011 and is based in Pittsburgh (www.inclineequity.com).
This transaction is the second realization for Incline’s third fund, Incline Equity Partners III, LP, which closed in August 2013 with just over $300 million of capital. In January 2017, Incline held a final close of Incline Equity Partners IV, LP with $601 million of total capital commitments. The new fund closed at its hard cap and above its $450 million target after only three months of marketing.
EQT Partners, the buyer of Dorner Manufacturing, invests in medium sized companies operating in a range of industries in Northern Europe, Eastern Europe, China and the US. EQT’s first US-dedicated fund, EQT Mid Market US, held a final closing in October 2016 with commitments of $726 million. The new fund makes both control and co-control investments of $35 million to $140 million. Sectors of interest include industrials; consumer goods & retail; services; technology, media and telecom; energy; environment; and healthcare. The Mid Market US investment advisory team – based in New York – is made up of 10 professionals, and is led by partners Matthew Levine and Brendan Scollans.
“We are impressed with Dorner’s talented management team, well-respected brand, superior value proposition and track record of growth,” said Mr. Levine. “Terry and the Dorner team have built an impressive global platform that is well positioned to capitalize on the favorable trends in industrial automation. EQT Mid Market US is fully committed to supporting Dorner’s management and employees in taking the company to the next level through leveraging EQT’s deep experience in this specific industry and by putting in place a highly relevant board with industrial, international and technological competence.”
EQT Partners is based in Stockholm with other offices in Copenhagen, Helsinki, Oslo, Frankfurt, Munich, New York, Shanghai, Hong Kong and Warsaw (www.eqtpartners.com).
© 2017 Private Equity Professional | March 24, 2017