Key Takeaways
- • Frontenac, a Chicago-based private equity firm, has sold Motion & Control Enterprises (MCE), a value-added distributor of flow control, fluid power, automation, and hydraulic repair products, to Bertram Capital, with terms not disclosed.
- • The sale concludes Frontenac's 2018 investment in MCE, during which the company completed and integrated 27 acquisitions.
- • MCE, founded in 1951, serves more than 33,000 OEM and end-user customers from 62 facilities across 18 states.
- • Solomon Partners served as exclusive financial advisor to MCE, and Winston Taylor served as legal counsel.
- • The exit reflects Frontenac's distribution strategy, under which it has invested in 8 distribution deals in recent years.
Summary
Frontenac, a Chicago-based private equity firm, announced the sale of Motion & Control Enterprises ("MCE"), a value-added distributor of flow control, fluid power, automation, and hydraulic repair products and services, to Bertram Capital. The company said terms of the transaction were not disclosed.
The sale marks the conclusion of Frontenac's 2018 investment in MCE. According to the announcement, MCE completed and integrated 27 acquisitions during the partnership, expanding the depth and breadth of its products, services, and geographic reach. The company also expanded its senior leadership team, strengthened its strategic sales capabilities, and streamlined operations, including capturing acquisition-related synergies.
Ron Kuehl, Managing Partner at Frontenac, said the firm executed a focused value creation plan with CEO1ST Partner Charley Hale that strengthened MCE's foundation and expanded its distribution capabilities. Kuehl said Frontenac believes MCE is well positioned for continued growth. Charley Hale, Chief Executive Officer of MCE, said the partnership began with a thesis in technical industrial distribution assets and that the company broadened its customer and supplier base during the investment.
The transaction builds on Frontenac's distribution franchise. The firm has invested in 8 distribution deals in recent years, seeking to support differentiated distributors through organic growth, strategic M&A, and investments in talent and commercial capabilities. Solomon Partners acted as exclusive financial advisor to MCE, and Winston Taylor served as its legal counsel.
MCE, founded in 1951, supplies technical fluid power, automation, flow control, rotating equipment, filtration, and repair solutions through 62 facilities in 18 states. Bertram Capital, which has raised over $4.0 billion in capital commitments since its 2006 inception, targets lower middle-market companies and pursues an operationally focused value-creation strategy.
The sale marks the conclusion of Frontenac's 2018 investment in MCE. According to the announcement, MCE completed and integrated 27 acquisitions during the partnership, expanding the depth and breadth of its products, services, and geographic reach. The company also expanded its senior leadership team, strengthened its strategic sales capabilities, and streamlined operations, including capturing acquisition-related synergies.
Ron Kuehl, Managing Partner at Frontenac, said the firm executed a focused value creation plan with CEO1ST Partner Charley Hale that strengthened MCE's foundation and expanded its distribution capabilities. Kuehl said Frontenac believes MCE is well positioned for continued growth. Charley Hale, Chief Executive Officer of MCE, said the partnership began with a thesis in technical industrial distribution assets and that the company broadened its customer and supplier base during the investment.
The transaction builds on Frontenac's distribution franchise. The firm has invested in 8 distribution deals in recent years, seeking to support differentiated distributors through organic growth, strategic M&A, and investments in talent and commercial capabilities. Solomon Partners acted as exclusive financial advisor to MCE, and Winston Taylor served as its legal counsel.
MCE, founded in 1951, supplies technical fluid power, automation, flow control, rotating equipment, filtration, and repair solutions through 62 facilities in 18 states. Bertram Capital, which has raised over $4.0 billion in capital commitments since its 2006 inception, targets lower middle-market companies and pursues an operationally focused value-creation strategy.
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