Burgaflex North America, a portfolio company of Blackford Capital, has acquired Burgaflex GmbH, a Germany-based supplier of tube and hose assemblies for the heavy truck, bus, construction and agricultural equipment industries.
“Burgaflex NA and Burgaflex GmbH were both previously part of the Burgaflex Group, which disbanded in 2010. Now, five years later, the companies are reunited and stronger than ever,” said David Kennedy, CEO of Burgaflex NA. “Our team has a strong relationship with Burgaflex GmbH, which will make for a smooth transition and integration of the two businesses.”
Burgaflex North America is a manufacturer of coolant system tube and hose assemblies serving the heavy truck, agricultural and off-road markets. The company was founded in 2004 and is headquartered north of Detroit in Fenton, MI (www.burgaflexna.com).
Burgaflex GmbH, also a maker of tube and hose assemblies, was founded in 2001 and operates out of a 25,000-square-foot facility in Leutenbach, Germany (www.burgaflex.de).
Blackford Capital first invested in Burgaflex North America in July 2014 and this transaction marks the first international acquisition for the company and will provide a European location to better service its global OEM customer base. “In approaching this acquisition, we factored in the strategic importance of international business,” said Jeremy Sheppard, President of Burgaflex North America. “We are confident that we can aggressively grow the business and improve the profitability through an increased focus on both operational efficiency and systems integration.”
“International expansion is a fundamental component of the Burgaflex NA growth strategy, and we expect to see continued synergies as the two companies begin to fully integrate,” said Martin Stein, Managing Director of Blackford Capital and Chairman of Burgaflex North America. “We are eager to move forward with the acquisition, and believe this transaction will help strengthen the business and better serve our customers.”
Blackford Capital invests in middle-market manufacturing, distribution, and service companies in both mature and growing industries. Target companies will have revenues of $20 million to $100 million and EBITDAs of $2 million to $20 million. Blackford has offices in Grand Rapids, MI (headquarters) and Santa Monica, CA (www.blackfordcapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-8-15
