Key Takeaways
- • Audax Private Equity has exited its portfolio company EIS, a value-added distributor of process materials and production supplies for electrical and electronic applications, with deal terms undisclosed.
- • Audax acquired EIS in 2019 as a carveout from Genuine Parts Company's Electrical Specialties division and executed a successful Buy & Build strategy, completing six add-on acquisitions during its hold period.
- • EIS expanded its aftermarket presence and enhanced go-to-market capabilities under Audax ownership, positioning the company to benefit from electrification and energy grid evolution trends.
- • Glenn Pennycook, EIS CEO, credited Audax as a collaborative partner that provided resources to strengthen the company's value proposition to OEM and aftermarket customers ahead of the exit.
Summary
Audax Private Equity announced the sale of EIS, its portfolio company and a value-added distributor serving the electrical and electronic applications sector. The transaction closed without disclosed financial terms. Audax originally acquired EIS in 2019 through a carveout of Genuine Parts Company's Electrical Specialties division, executing an operational strategy to separate the acquired assets into distinct operating businesses.
During its approximately seven-year hold period, Audax deployed its Buy & Build strategy to drive material growth at EIS. The firm recruited a new management team, built corporate infrastructure to support stand-alone operations, and refined go-to-market positioning. This operational framework enabled six add-on acquisitions that expanded EIS's capabilities and strengthened its presence in the aftermarket segment—a key growth avenue complementing its existing OEM business.
Audax Partner Don Bramley highlighted EIS as emblematic of the firm's Buy & Build thesis, noting that enhancements to corporate infrastructure, management talent, and customer strategy positioned EIS as a differentiated value-add partner with technical expertise spanning the OEM and aftermarket value chain. Glenn Pennycook, EIS CEO, echoed this sentiment, underscoring that Audax's collaborative approach and resource support enabled EIS to enhance its value proposition and execute a disciplined acquisition strategy. Pennycook indicated that EIS has built foundational capabilities to capitalize on secular trends, particularly electrification and energy grid modernization, suggesting favorable tailwinds for the buyer as the company continues its growth trajectory post-acquisition.
During its approximately seven-year hold period, Audax deployed its Buy & Build strategy to drive material growth at EIS. The firm recruited a new management team, built corporate infrastructure to support stand-alone operations, and refined go-to-market positioning. This operational framework enabled six add-on acquisitions that expanded EIS's capabilities and strengthened its presence in the aftermarket segment—a key growth avenue complementing its existing OEM business.
Audax Partner Don Bramley highlighted EIS as emblematic of the firm's Buy & Build thesis, noting that enhancements to corporate infrastructure, management talent, and customer strategy positioned EIS as a differentiated value-add partner with technical expertise spanning the OEM and aftermarket value chain. Glenn Pennycook, EIS CEO, echoed this sentiment, underscoring that Audax's collaborative approach and resource support enabled EIS to enhance its value proposition and execute a disciplined acquisition strategy. Pennycook indicated that EIS has built foundational capabilities to capitalize on secular trends, particularly electrification and energy grid modernization, suggesting favorable tailwinds for the buyer as the company continues its growth trajectory post-acquisition.
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