Renovo Capital has acquired Rochester Gauges from Gas Equipment Company. Renovo partnered on this transaction with industry executive and operating partner Frank Guidone.
Rochester Gauges is a manufacturer of gauges and sensors that measure liquid levels of various fuels, including propane, gasoline and diesel. The company’s products are most often used in residential and commercial propane tanks, forklifts, RV’s, lawn and garden equipment, tractors and personal aircraft.
Rochester Gauges was founded in 1913 and acquired by Gas Equipment Company in 1958. The company has manufacturing facilities in Dallas (headquarters), Mexico City and Brussels, with a sales office in Shanghai, China (www.rochestergauges.com).
Gas Equipment Company (GEC) is a distributor of in-process, transfer and control equipment for oil and gas producers, transporters, and LP-Gas marketers. The company has been owned and managed by the LaDue family since Milt LaDue founded the company in 1937. GEC, led by President Skeeter LaDue (grandson of the founder), is headquartered in Dallas (www.gasequipment.com).
The buy of Rochester Gauges will be used as a platform investment in the sensor and measurement space and will be led by Mr. Guidone. “We are excited to continue the legacy that the LaDue family has successfully built over many decades of ownership,” said Mr. Guidone. “Our priority will continue to be operating at a high level of quality and customer service as well as grow the business in current and new markets. We believe that Rochester serves as an optimal foundation for growth, both organically and through acquisition, in order to create a broad-based liquid level measurement business.”
Mr. Guidone has over 25 years of operating and leadership experience and most recently was the President and CEO of Measurement Specialties (NASDAQ: MEAS), a designer and manufacturer of embedded sensors and sensor-based systems. While at Measurement Specialties, he orchestrated a successful out-of-court restructuring of the business in 2004 and then led an expansion of the company growing revenue from $40 million to $600 million over 10 years. During this period, Mr. Guidone led the acquisitions of 24 businesses and deployed $450 million of capital within the embedded sensor sector. The result was compounded annual earnings growth of over 20%. Mr. Guidone exited the company in October 2014 following the sale to TE Connectivity (NYSE: TEL). Prior to his time at Measurement Specialties, he was a founding partner and managing director of CRP, a Dallas-based turnaround and restructuring firm.
Renovo Capital makes control equity investments in lower middle market businesses that are undergoing varying degrees of operational, financial or market-driven change. The firm typically invests from $10 million to $40 million of equity capital in businesses with annual revenues between $20 million and $200 million. Sectors of interest include manufacturing, distribution, and services. Renovo was founded in 2009 and is based in Dallas with an additional office in Denver (www.renovocapital.com).
Renovo Capital is currently investing out of Renovo Capital Fund II LP which closed in September 2014 with $132 million committed capital.
© 2018 Private Equity Professional | June 22, 2018
