M&A Deal Summary

AO Smith Acquires Sun Water Systems

On August 8, 2016, AO Smith acquired manufacturer Sun Water Systems from First Capital Partners, Enhanced Capital Partners, Praesidian Capital and L Catterton Partners for 87M USD

Acquisition Highlights
  • This is AO Smith’s 1st transaction in the Manufacturing sector.
  • This is AO Smith’s 7th largest (disclosed) transaction.
  • This is AO Smith’s 6th transaction in the United States.
  • This is AO Smith’s 1st transaction in Texas.

M&A Deal Summary

Date 2016-08-08
Target Sun Water Systems
Sector Manufacturing
Buyer(s) AO Smith
Sellers(s) First Capital Partners
Enhanced Capital Partners
Praesidian Capital
L Catterton Partners
Deal Type Add-on Acquisition
Deal Value 87M USD

Target

Sun Water Systems

Haltom City, Texas, United States
website
Sun Water Systems, Inc. (dba Aquasana) is a designer, assembler and marketer of premium performance water treatment products, including whole-house treatment systems, drinking water solutions for at home and on-the-go, and shower filters.

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Buyer(S) 1

Buyer

AO Smith

Milwaukee, Wisconsin, United States

website


Category Company
Founded 1874
SectorManufacturing
Employees13,700
Revenue 3.5B USD (2021)
DESCRIPTION
Entrance to AO Smith's corporate headquarters in Milwaukee, Wisconsin.
Entrance to AO Smith's corporate headquarters in Milwaukee, Wisconsin.

AO Smith is a manufacturer of water heaters and boilers, serving a diverse mix of residential and commercial end markets. The Company's water heater segment offers electric, natural gas and liquid propane models as well as solar tanks and gas tankless units for today’s energy efficient homes. AO Smith's commercial boilers are used primarily in space heating applications including hospitals, schools, hotels and other large commercial buildings. AO Smith was incorporated in 1874 and is based in Milwaukee, Wisconsin.


DEAL STATS #
Overall 8 of 12
Sector (Manufacturing) 1 of 4
Type (Add-on Acquisition) 6 of 10
State (Texas) 1 of 1
Country (United States) 6 of 9
Year (2016) 1 of 1
Size (of disclosed) 7 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-26 Lochinvar

Lebanon, Tennessee, United States

Lochinvar LLC is a manufacturer of high-efficiency boilers used in commercial and residential hydronic heating and hot water applications.

Buy $418M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-08 Water-Right

Appleton, Wisconsin, United States

Water-Right, Inc. is a water quality solutions provider with a complete line of residential and commercial products and systems for a wide variety of applications, including solutions for problem well water. Water-Right products are sold under the Evolve®, WaterCare®, Sanitizer Series®, Impression Series® and CustomCare® product brands. In addition to its advanced and innovative product solutions, Water-Right also has a retail facility, Water-Right Services, and a state-certified lab, Clean Water Testing LLC™, specializing in water analytical services.

Buy $107M

Seller(S) 4

SELLER

First Capital Partners

Omaha, Nebraska, United States

Investor Investor Investor Investor Investor

website


Category Mezzanine Finance Firm
Founded 2006
PE ASSETS 241M USD
SizeSmall
Type Sector Agnostic
DESCRIPTION

First Capital Partners is an Omaha, Nebraska-based private investment firm that provides equity and subordinated debt financing to lower middle-market companies. First targets businesses with revenues of $10 to $100 million and EBITDA up to $10 million. Investments are generally used to fund management buyouts, growth capital financings, recapitalizations, divestitures, and generational transfers of ownership. Broad areas of interest include manufacturing, business services, and value-added distribution. First Capital will not invest in startups, early stage companies, high technology, real estate, or retail. First Capital Partners is based in US.


DEAL STATS #
Overall 5 of 14
Sector (Manufacturing) 1 of 3
Type (Add-on Acquisition) 3 of 7
State (Texas) 1 of 2
Country (United States) 5 of 14
Year (2016) 2 of 2
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-28 UPF Services

Spokane Valley, Washington, United States

UPF Services LLC is a provider of residential and commercial real estate mortgage and loan services to its financial institution customers. Mortgage lenders and loan servicers use these services to quantify and qualify risk and manage loss mitigation throughout the mortgage and loan spectrum.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-01 Color Craft Graphic Arts

Manitowoc, Wisconsin, United States

Color Craft Graphic Arts is a folding carton company focused on providing paperboard and printing services. Color Craft Graphic Arts designs, makes dies, prints, die-cut, glue, and ship warehouse projects, all in-house at their Manitowoc plant. Providing print runs from 500 to 5 million, they can help from pre-press all the way to delivery. Color Craft Graphic Arts was founded in 1929 and is based in Manitowoc, Wisconsin.

Buy -
SELLER

Enhanced Capital Partners

New York, New York, United States

website


Category Private Equity Firm
Founded 1999
PE ASSETS 500M USD
SizeMiddle-Market
Type Sector Focused
DESCRIPTION

Enhanced Capital Partners is a private investment firm focused on investing in small and mid-sized growth companies generating sales up to $100 million. The Firm can invest across the capital structure, including equity and mezzanine debt financing. Enhanced also will provide funds for working capital needs. The Firm looks to invest $2 to $20 million of equity and mezzanine in the range of $500,000 to $3 million in mid to later-stage profitable companies that are seeking capital to fund growth, make an acquisition, or for an outright sale. Target sectors include aerospace, business services, communications, distribution, manufacturing, healthcare, IT, software, and retail. Enhanced Equity Partners was formed in 1999 and is based in New York City with an additional office in Austin, Birmingham, Denver, Jackson Hole, Nashville, New Orleans, Stamford, Tampa and Washington, D.C.


DEAL STATS #
Overall 23 of 26
Sector (Manufacturing) 1 of 1
Type (Add-on Acquisition) 11 of 14
State (Texas) 2 of 3
Country (United States) 23 of 26
Year (2016) 2 of 2
Size (of disclosed) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-05 American GreenFuels

New Haven, Connecticut, United States

American GreenFuels is a producer of high-quality biodiesel in the Northeast US to meet the growing regional demand for biodiesel in home heating and transportation fuels, to provide energy, and promote environmental responsibility. American GreenFuels was founded in 2004 and is based in New Haven, Connecticut.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-25 iDevices

Avon, Connecticut, United States

iDevices LLC is a developer of an App-enabled products that incorporate wireless connectivity to the Apple and Android platforms. iDevices Consulting LLC partners with companies, inventors, and developers to App-enable their products and bring new ideas to market in the Apple and Android space. iDevices is based in Avon, Connecticut.

Sell -
SELLER

Praesidian Capital

Larchmont, New York, United States

Investor Investor Investor

website


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 1.0B USD
SizeLarge
Type Sector Agnostic
DESCRIPTION

Praesidian Capital is a mezzanine debt provider for middle-market companies throughout the US and Europe. Praesidian looks to provide junior capital to businesses with revenues between $3 and $100 million and EBITDA between $250k and $20 million. Capital is typically used to support acquisitions, management/leveraged buyouts, recapitalizations, and restructurings. Praesidian will not invest in oil & gas exploration, financial services, real estate, or start-ups. Praesidian Capital was formed in 2002 and is based in New York City.


DEAL STATS #
Overall 14 of 27
Sector (Manufacturing) 1 of 1
Type (Add-on Acquisition) 6 of 9
State (Texas) 3 of 4
Country (United States) 14 of 25
Year (2016) 3 of 5
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-26 National Truck Protection

Winston-Salem, North Carolina, United States

National Truck Protection is a provider of extended service contracts for critical coverage on high-value fundamental drivetrain components for used class 3 through 8 trucks. National Truck Protection was founded in 1983 and is based in Winston-Salem, North Carolina.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-09-30 Mission Critical Electronics

Dallas, Texas, United States

Mission Critical Electronics, Inc. is a niche-oriented manufacturer of power conversion, battery charging and battery products operating under the leading brands Kussmaul Electronics, Newmar Power, ASEA Power Systems, Power Products, and American Battery Charging. The Company focuses on critical system applications in specialty vehicle, public safety, and industrial/marine applications where durability, reliability, and performance are essential to deliver immediately accessible power. MCE’s solutions address application specific requirements for 4,000 customers across 2,000+ branded SKUs.

Sell -
SELLER

L Catterton Partners

Greenwich, Connecticut, United States

Investor Investor Investor Investor Investor

website


Category Growth Capital Firm
Founded 1989
PE ASSETS 30.0B USD
SizeMega
Type Sector Agnostic
DESCRIPTION

L Catterton is a private equity firm that targets investments in consumer-related companies located throughout North America. L Catterton looks for businesses with identifiable brands and operating in 'defensible and extensible' positions within growth industry segments. Specific sectors of interest include branded consumables, food/beverages, consumer services, restaurants, media and marketing, household durables, specialty retail, mass merchant retail, and luxury/apparel. Prospective transactions include management buyouts, recapitalizations, turnarounds, and growth financings. L Catterton was formed in 1990 and is based in Greenwich, Connecticut.


DEAL STATS #
Overall 38 of 89
Sector (Manufacturing) 1 of 2
Type (Add-on Acquisition) 16 of 39
State (Texas) 3 of 6
Country (United States) 35 of 67
Year (2016) 3 of 6
Size (of disclosed) 11 of 12
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-08-02 Hanna Andersson

Portland, Oregon, United States

Hanna Andersson is a multi-channel children’s apparel and accessories brand. Hanna Andersson has offered high-quality, Swedish-inspired children's clothing. From its iconic striped sleepwear to everyday playwear and more, Hanna Andersson's broad product line is balanced across boys, girls and infants from newborn to 12 years old. The Company's clothing is clearly differentiated by unmatched quality, durability and style. Over the last decade, Hanna Andersson has grown from a highly successful catalog brand to become the most prominent and fastest growing premium brand in the children's specialty apparel category. With a successful omni-channel platform, Hanna Andersson has been generating double-digit annual revenue growth since 2010 through a combination of its heritage catalog business and attractive e-commerce platform, as well as 55 retail stores and 11 outlet locations. Hanna Andersson was founded in 1983 and is based in Portland, Oregon.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-09-02 Velvet Taco

Plano, Texas, United States

Velvet Taco is a restaurant concept set out to elevate through globally-inspired recipes and the freshest ingredients. The acclaimed restaurant provides a broad sampling of international tastes and inventive combinations, delivering flavors that are as memorable as they are delicious. Formed in 2011, Velvet Taco has almost 30 locations in Texas, North Carolina, Georgia, Illinois, Tennessee, and Oklahoma.

Buy -