Pfingsten Partners has sold Midwest Products and Engineering (MPE) to Beecken Petty O’Keefe & Company (BPOC).
MPE is a medium volume contract manufacturer of mobile and stationary carts, consoles, tables, and assemblies that are sold primarily to healthcare and technology OEMs. The company, led by CEO Hank Kohl, was founded in 1978 and is headquartered in Milwaukee (www.mpe-inc.com).
Pfingsten acquired MPE in June 2011 through its $525 million fourth fund. “Pfingsten’s conservative capital structure allowed us to make significant investments in manufacturing technologies, new product development and key management personnel to execute on our strategy,” said Mr. Kohl. “We are excited to partner with a healthcare-focused private equity firm like BPOC as we embark on our next phase of growth.”
Beecken Petty O’Keefe & Company (BPOC) invests in middle-market buy-out transactions, recapitalizations, and growth platforms in the health care industry. Typical targets will have EBITDAs from $5 million to $50 million and enterprise values from $50 million to $500 million. The firm is currently investing out of its fourth fund, Beecken Petty O’Keefe & Company Fund IV LP, which closed in 2013 with $500 million of capital. BPOC was founded in 1996 and is headquartered in Chicago (www.bpoc.com).
“MPE is proud to be a premier partner to many of the nation’s largest medical device and technology OEMs,” added Mr. Kohl, who will continue to lead the company under BPOC ownership. “BPOC’s experience in contract manufacturing and the broader healthcare industry is well aligned with our business model and strategy and will allow us to better serve our customers while continuing our rapid growth.”
“The MPE team did a tremendous job accelerating the company’s growth during our ownership period,” said Phillip Bronsteatter, a Pfingsten managing director. “Their experienced team and laser focus on driving customer value were key to this successful investment.”
Pfingsten invests in middle-market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million, revenues from $20 million to $150 million, and EBITDA between $3 million and $12 million. Since completing its first investment in 1991, Pfingsten has acquired 138 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with representative offices in India and China (www.pfingsten.com).
“MPE is a market leader with best-in-class product development, manufacturing operations and technical services. We are excited to partner with MPE’s management team to support the company and its long-term growth initiatives,” added Dave Cooney, a partner at BPOC.
Cowen and Company was the financial advisor to MPE on this transaction and Paul Hastings provided legal services.
© 2019 Private Equity Professional | October 2, 2019