electronic controls

Argosy Partners Exits Etratech

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Etratech Enterprises, a portfolio company of Argosy Partners, has been acquired by publicly-traded Gentherm for $64 million.

Etratech designs, develops and manufactures electronic controls and control systems for the automotive, RV and marine, security, and medical industries. The company’s capabilities include hardware and software design, prototyping and testing, manufacturing, assembly and final test, and packaging and delivery. Etratech employs more than 400 people worldwide and has manufacturing facilities in Burlington, ON (headquarters) and Shenzhen, China (www.etratech.com).

Etratech had revenues of approximately C$77 million (US$61 million) during the 12-month period prior to the acquisition and the purchase price of US$64 million represents approximately 8.5x trailing 12-months EBITDA.

“I believe that with Gentherm, we’ve found a perfect fit for our global electronics engineering and manufacturing business,” said Michael Desnoyers, the President and CEO of Etratech.

Gentherm (NASDAQ: THRM) is developer and marketer of thermal management technologies that are used in a range of heating and cooling and temperature control applications. The company’s automotive products include variable temperature climate control seats, TrueTherm cupholder and storage bins, and heated automotive interior systems (including heated seats, steering wheels, armrests and other components). Non-automotive products include remote power generation systems, heated and cooled furniture, patient temperature management systems, and industrial environmental test chambers. Gentherm is led by its CEO Daniel Coker and has over 13,000 employees in facilities in the United States, Germany, Canada, China, Hungary, Japan, Korea, Macedonia, Malta, Mexico, United Kingdom, Ukraine, and Vietnam. The company is headquartered near Detroit in Northville, MI (www.gentherm.com).

Argosy Partners invests in manufacturing, distribution or service companies that have enterprise values between C$3 million and C$20 million, sales between C$10 million and C$100 million, and cash flow before interest of at least C$1 million. The firm is headquartered in Toronto (www.argosysinvestments.com). Partner Larry Klar led the transaction for Argosy.

Birmingham, MI-based Angle Advisors (www.angleadvisors.com) was the investment banking advisor to Etratech on this transaction.

© 2017 Private Equity Professional | November 9, 2017

AEA Investors Acquires Galco Industrial Electronics

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Galco Industrial Electronics has been acquired by AEA Investors.  Galco is a distributor of industrial and commercial electrical and electronic control, automation and motion products.

Galco Industrial Electronics is a distributor of industrial electronics for automation, control and motion applications.  Galco’s product portfolio includes components such as drives, relays, contactors, circuit breakers, switches and numerous others, serving applications for controlled power, speed, velocity, torque, position, sequence, interpolation, test, measurement and data acquisition. The company also provides engineering and repair services.  Galco is headquartered in Madison Heights, MI (www.galco.com).

AEA manages approximately $6 billion of invested and committed capital in funds dedicated to three purposes: buyouts of middle market companies operating in the industrial, specialty chemical, consumer products and consumer services sectors; buyouts of smaller middle market companies in these same sectors; and mezzanine and senior debt investments. AEA was founded in 1968 and is based in New York.

Quarton Partners acted as the exclusive financial advisor to Galco in this transaction. Headquartered in the Detroit suburb of Birmingham, Quarton is a middle market investment banking firm, serving privately held and publicly traded companies, as well as private equity firms. Quarton Partners assists its clients with mergers and acquisitions, private capital raising, restructurings, valuations and other financial advisory services. Its principals have successfully completed hundreds of engagements in a variety of industries across the US and throughout the world (www.quartonpartners.com).

2014 PEPD • Private Equity’s Leading News Magazine • 6-6-14