Pfingsten has sold ZSi-Foster to Ideal-Tridon, a portfolio company of Snow Phipps Group.
ZSi-Foster is a manufacturer and distributor of support systems, cushioned clamping and quick disconnect coupling devices that are attached to pipe, tube and hose to prevent vibration, shock, surge and corrosion. The company’s products are used in the general industrial, fluid power, HVAC, refrigeration and electrical markets.
ZSi-Foster, led by CEO Rick Stepien, is headquartered near Detroit in Canton, MI with additional facilities in Springfield, MO; and La Mirada, CA (www.zsi-inc.com).
“The ZSi-Foster team did an outstanding job executing their strategy and creating a customer-centric approach to business,” said Thomas Bagley, founder and senior managing director of Pfingsten. “We wish Rick and his team success as they continue to grow this exceptional company and execute on new goals and strategies.”
Since its acquisition by Pfingsten in May 2014, ZSi-Foster completed three add-on acquisitions that expanded the company’s geographic reach and added new product categories in hose assembly and metal framing. The add-on acquisitions included Ocala, FL-based Florida Strut, a manufacturer of metal strut channels and a distributor of fittings, pipe clamps, and utility brackets for electrical and industrial applications (December 2018); and La Mirada, CA-based Wesanco, a manufacturer of metal framing, fittings, pipe clamps, and accessories for mechanical, electrical, industrial and OEM applications (October 2015).
“Our strategy was to seek acquisitions that allowed the company to leverage its broad line of clamping and fitting solutions to provide a comprehensive product suite on a national basis to its customers,” said Denio Bolzan, a managing director at Pfingsten.
Ideal-Tridon, the buyer of ZSi-Foster, is a designer and manufacturer of stainless steel and specialty clamps that are used in a range of fastening and sealing applications across many end markets. The company’s products include stainless steel clamps, worm drive hose clamps, high-torque clamps, constant tension clamps, T-Bolts, V-Inserts, and no-hub couplings. Ideal-Tridon sells its products to original equipment manufacturers, and to distributors and retail businesses in the replacement market. The company, led by CEO Michael Reese, is headquartered in Smyrna, TN with additional US facilities in Brownsville, TX and Fullerton, CA; and international facilities in Mexico, China, Japan, Poland, and India (www.idealtridon.com).
Snow Phipps acquired Ideal-Tridon from Industrial Growth Partners in July 2017. “We partnered with Ideal Tridon to support their growth strategy of expanding what they are able to do for their customers. The acquisition of ZSi-Foster is a transformational step forward in that process and will create many more opportunities for us to continue to grow organically and through M&A,” said John Pless, a partner at Snow Phipps.
Snow Phipps makes control investments in companies primarily located in North America with enterprise values ranging from $100 million to $500 million that require equity investments ranging from $50 million to $150 million. Sectors of interest include industrials, services, and consumer. The firm was co-founded by Ian Snow and Ogden Phipps in April 2005 and is headquartered in New York (www.snowphipps.com).
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 137 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).
BlackArch Partners was the financial advisor to ZSi-Foster and Lincoln International advised Ideal-Tridon.
© 2019 Private Equity Professional | July 11, 2019
