Huron Capital Partners and Bandit Industries have entered into an agreement to recapitalize Bandit and to provide resources and capital to support the company’s growth. The investment is expected to close in early fall 2014.
Bandit Industries is a designer, manufacturer, distributor and servicer of hand-fed and whole tree wood chippers, stump grinders, forestry mowers, Beast recycling machines and other specialty wood and waste processing equipment. Bandit serves professionals in the logging, forestry, tree care, land clearing, recycling, and renewable energy markets through a global dealer network of over 160 locations. The company was founded in 1983 and is based just outside Mount Pleasant in Remus, MI (www.banditchippers.com).
“Bandit’s history as an independent, family-run business is an important criteria for us,” said Mike Beauregard, senior partner at Huron Capital. “Our investment in the business will preserve the legacy and culture of this business while continuing to expand globally under the Bandit brand. The business will remain a private, Michigan-based company funded with Michigan-based capital and employing Michigan-based people.”
Huron Capital Partners invests up to $70 million per transaction in middle market companies that have revenues up to $200 million and EBITDAs of $5 million or more. Sectors of interest include education & training, healthcare, specialty chemicals, specialty packaging, consumer products, home decor, business services, industrial manufacturing, food & beverage, and marketing services. The firm was founded in 1999 and currently manages over $1.1 billion in committed equity through four private equity funds. Huron Capital Partners has offices in Detroit and Toronto (www.huroncapital.com).
Jerry Morey will continue to run Bandit Industries as President & CEO. Upon closing, a CEO succession plan will be initiated to recruit and train a new executive to lead the business into its next phase of growth. Mike Morey Sr. and Dianne Morey will remain with the company in consulting roles. Bandit will be co-owned by Jerry Morey, Mike Morey, Diane Morey and Huron Capital.
“When we announced last year that we were looking at companies for a potential sale or merger of Bandit, we were adamant that it had to be the right fit for our company, our community, our dealer network, and most importantly, our employees,” said Bandit Industries President Jerry Morey. “We were only interested in partnering with an organization that would respect and be committed to our company culture, from our employees in Michigan to our dealers operating all around the world. Huron Capital has a long history of growing companies while maintaining their independent operations and unique company culture, and that was a significant factor in our decision to partner with the firm. It also feels good to be working with another Michigan-based company that understands our challenges and shares our hometown pride. We are very much looking forward to the future for both Bandit and our mid-Michigan community.”
2014 PEPD • Private Equity’s Leading News Magazine • 7-23-14
