May River Capital has completed the acquisition of BJM Pumps, a maker of submersible pumps used in demanding and harsh conditions.
BJM Pumps provides submersible pumps that are used in industrial and municipal/wastewater environments, along with “dewatering” tasks in mining, construction, fire-damaged sites and power generation pumping. BJM’s products are designed to operate in very demanding and harsh conditions, with pumps ranging from 1/6th to 125 horsepower and are constructed of cast stainless steel, non-metallic Noryl (a family of polyphenyl ethers resins), chrome iron and cast iron. The company was founded in 1983 and is headquartered near New Haven in Old Saybrook, CT (www.bjmpumps.com).
The buy of BJM represents the first acquisition for a new industrial pump platform that has been launched by May River. Brad Sterner, a member of May River’s Executive Resource Group, will serve as the executive chairman of the new platform as well as the interim CEO of BJM. This is the second May River investment platform involving Mr. Sterner. He is the current CEO of Hunt Valve Company which May River acquired in February 2016.
“BJM’s strong brand name, selling channels and pumping technologies portfolio are ideal attributes for our new platform,” said Mr. Sterner. “We have developed a commercial and operational playbook for the industrial pump platform that will deliver above market organic growth and margin expansion that will require ongoing investment in people, process and production capacity to enable and sustain that growth rate.”
“We see tremendous opportunities to expand BJM’s position in the pump market by building on its extensive distributor network, as well as investing in accelerated new product development,” said Dan Barlow, a Partner at May River that leads the industrial pump platform. “The company is well-regarded for its durable, dependable pump technology, proven in a wide variety of industrial applications. The investments we’ll bring to the company will enable BJM to accelerate its growth and position itself to become the premier provider in its chosen categories.”
Chicago-based May River invests from $15 million to $40 million of equity in companies with enterprise values of $15 million to $75 million, revenues of at least $10 million, and EBITDA of at least $3 million. Sectors of interest include high-value manufacturing, engineered products, industrial services, and value-added industrial distribution businesses. May River was founded in February 2012 and closed its inaugural fund, May River Fund I, in March 2017 with total limited partner commitments of $165 million. The new fund was raised in just six months and closed above target (www.mayrivercapital.com).
© 2017 Private Equity Professional | August 30, 2017