Rochester Gauges, a portfolio company of Renovo Capital, has acquired Fozmula Limited from HB4.
Fozmula is a designer and manufacturer of electro-mechanical, mechanical and electronic sensors and gauges used for the control, monitoring and protection of internal combustion engines, generators, and vehicles. The company’s products include sensors, switches and gauges for the control and monitoring of fuel level, coolant level, temperature and pressure.
Fozmula specializes in solid-state level sensors that enable continuous measurement of fuel, oil or coolant levels using in-house developed technology. With no moving parts, solid-state devices provide improved accuracy and reliability compared to mechanical alternatives. The company’s products are used in the power generation, specialty vehicle and construction equipment industries. Fozmula was founded in 1977 and is based near Birmingham in Warwick, UK.
Rochester Gauges is a manufacturer of gauges and sensors that measure liquid levels of various fuels, including propane, gasoline and diesel for many different applications, including residential and commercial propane tanks, forklifts, recreational vehicles, lawn and garden equipment, tractors, and personal aircraft. The company has manufacturing facilities in Dallas (headquarters), Mexico City and Brussels, with a sales office in Shanghai.
Rochester Gauges, led by President Ben Lease, was founded in 1913 and acquired by Dallas-based Gas Equipment Company (GEC), in 1958. Renovo Capital acquired the company from GEC, a distributor of process control equipment, in June 2018.
“This combination is extremely synergistic, allowing us to offer Fozmula’s industry-leading capacitive products to our current customers, and our broad range of reed-based and guided wave radar products to theirs,” said Mr. Lease. “The Warwick facility and team will provide Rochester the scale and resources necessary to service the European market. We are also delighted to be cooperating with the HB4 team on supply chain, design and automation projects.”
The acquisition of Fozmula from HB4 is part of a multi-year strategy to expand Rochester’s technical portfolio and global footprint within the liquid level measurement segment. Fozmula was acquired by HB4 in 2016.
HB4 is a family holding company operating in the industrial, real estate, automotive and interior design sectors in Italy, Germany, Singapore, China and the UK. Through its ten operating subsidiaries, the company manufactures a range of industrial and automotive components. HB4 has approximately 500 employees and is headquartered near Bologna in Carpi, Italy.
Renovo Capital makes control equity investments of $10 million to $40 million in businesses with annual revenues between $20 million and $200 million that are undergoing varying degrees of operational, financial or market-driven change. Sectors of interest include specialty manufacturing and business services. In January 2019, Renovo closed its third fund, Renovo Capital Fund III LP, at the hard-cap of $225 million. The firm was founded in 2009 and is headquartered in Dallas with an additional office in Denver.
© 2019 Private Equity Professional | November 12, 2019
