Altus Capital Partners has acquired Nichols Portland, a designer and manufacturer of powdered metal gears, from Parker Hannifin Corporation.
Nichols Portland makes both fixed and variable displacement powdered metal gears – such as gerotor gears and smart pumps – that are used by OEMs in the automotive and on-off highway markets. Gerotor gears (“generated rotor”) are internal gear pumps that are used to move fluids through a system. They are primarily suitable for clean, low pressure applications such as lubrication systems or hot oil filtration systems, but can also be found in low to moderate pressure hydraulic applications. Nichols Portland was founded in 1904 and has its manufacturing operations and headquarters in Portland, ME (www.gerotor.net).
The management team of Nichols Portland – led by its general manager Rick Izor – participated in this acquisition. According to Altus, revenues for Nichols Portland’s products, especially smart pump and advanced variable gears, will grow due to the ever increasing need for fuel and motor efficiency.
“Altus is enthusiastic to partner with Nichols Portland’s management team in acquiring an industry leader in the designing and manufacturing of powdered metal gerotor gears and a growing developer of smart pumps for fuel applications,” said Russell Greenberg, Managing Partner of Altus Capital. “We recognize and value management’s depth of capabilities along with the company’s exceptional technological advancements, which has earned Nichols Portland its industry leadership position.”
Altus Capital Partners invests in corporate divestitures, management-led buyouts, and privately-held or family-owned businesses with manufacturing operations based primarily in the Midwest and Eastern regions of the United States. Target companies will have at least $5 million of EBITDA and an enterprise value from $30 million to $100 million. The firm is headquartered in Wilton, CT with an additional office near Chicago in Lincolnshire, IL (www.altuscapitalpartners.com).
“Nichols Portland has a long tradition of providing innovative solutions for its customers. We look forward to working with and supporting management to expand upon this legacy,” said Heidi Goldstein, a principal at Altus Capital.
Parker Hannifin, the seller of Nichols Portland, is a diversified manufacturer of motion and control technologies and systems. The company has annual revenues of about $13 billion and employs approximately 55,000 people in 50 countries. Parker Hannifin was founded in 1918 and is headquartered in Cleveland (www.parker.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-10-16
