Industrial Opportunity Partners (IOP) has completed the sale of its portfolio company E.B. Bradley to PSP Capital Partners. The sale of E.B. Bradley, acquired by IOP in January 2009, represents the firm’s fifth investment realization from its initial $185 million committed fund.
E.B. Bradley is a distributor of specialty hardware, surfacing products, flooring and woodworking supplies, and a manufacturer of laminated panels. The company serves the commercial construction and residential renovation markets. E.B. Bradley operates from a network of 11 facilities located in California, Washington and Oregon and has more than 14,000 customers. The company was founded in 1929 by Earl Bertrand Bradley and is based in Los Angeles (www.ebbradley.com).
“IOP’s investment in E.B. Bradley was very successful, and IOP would like to thank President Don Lorey and the entire E.B. Bradley management team for their success in creating value in the business,” said Ken Tallering, a Senior Managing Director of IOP. “We believe PSP Capital’s industry experience and long-term investment strategy suits the company well, and IOP expects the company to continue to grow and thrive under PSP Capital’s ownership.”
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. IOP targets businesses with strong product, customer, and market positions and provides management and operational resources to support sales growth and operational improvements. The firm has $460 million of committed capital and was founded in 2005. IOP is headquartered in near Chicago in Evanston, IL (www.iopfund.com).
IOP Operating Principal John Colaianne served as E.B. Bradley’s Chairman of the Board and provided strategic oversight during the course of IOP’s ownership. “Through the leadership and dedication of the company’s outstanding management team led by its President Don Lorey, E.B. Bradley has continuously improved its product quality and availability and shown an unwavering commitment to customer service. Through its continued focus on customer and supplier relationships, E.B. Bradley has exhibited substantial growth in the past few years and is positioned well for the future,” said Mr. Colaianne.
PSP Capital Partners invests from $15 million to $75 million per transaction in businesses with $5 million to $25 million of operating cash flow. Sectors of interest include business services, niche manufacturing, value-added distribution, food and agribusiness, leisure and real estate services. The firm was founded by Penny Pritzker, the current Secretary of Commerce of the United States of America. PSP Capital is headquartered in Chicago (www.pspcapital.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-5-14