M&A Deal Summary

Wynnchurch Capital Acquires Principal Sloan

On November 4, 2024, private equity firm Wynnchurch Capital acquired electrical equipment company Principal Sloan from Valesco Industries and Brookside Capital Partners

Acquisition Highlights
  • This is Wynnchurch Capital’s 1st transaction in the Electrical Equipment sector.
  • This is Wynnchurch Capital’s 59th transaction in the United States.
  • This is Wynnchurch Capital’s 9th transaction in Texas.

M&A Deal Summary

Date 2024-11-04
Target Principal Sloan
Sector Electrical Equipment
Buyer(s) Wynnchurch Capital
Sellers(s) Valesco Industries
Brookside Capital Partners
Deal Type Secondary Buyout
Advisor(s) Citizens Capital Markets (Financial)

Target

Principal Sloan

San Angelo, Texas, United States
Principal Sloan is an electronics component provider to the electrical sign industry in North America. The company manufactures and sells UL-recognized LED sign modules and cabinet products for new and retrofit sign applications, as well as neon and LED power supplies and other sign accessories. Principal Sloan was founded in 2010 and is based in San Angelo, Texas.

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Buyer(S) 1

Buyer

Wynnchurch Capital

Rosemont, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 9.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Wynnchurch Capital is a private equity firm focused on middle-market company investments in the US and Canada. Wynnchurch looks to commit $50 to $750 million of equity per platform. Sectors of interest include manufacturing, business services, logistics, energy and power services, and value-added distribution. Prospective transaction types include management buyouts, recapitalizations, corporate carve-outs, restructurings, turnarounds and growth capital situations. Wynnchurch Capital was formed in 1999 and is based in Rosemont, Illinois.


DEAL STATS #
Overall 71 of 72
Sector (Electrical Equipment) 1 of 2
Type (Secondary Buyout) 18 of 18
State (Texas) 9 of 10
Country (United States) 59 of 60
Year (2024) 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-08-07 ORS Nasco

Tulsa, Oklahoma, United States

ORS Nasco is a wholesale distributor of industrial supplies in North America. The company offers a comprehensive product portfolio of premium branded and private label products from hundreds of manufacturers for use in the industrial, welding, oilfield, safety, electrical, construction, HVAC, MRO, plumbing, janitorial, and rental markets. ORS Nasco was founded in 1959 and is based in Tulsa, Oklahoma.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-11-12 Principal Industries

San Angelo, Texas, United States

Principal Industries is a provider of electrical components, services, and software to the signage and architectural lighting industry, serving a diverse range of commercial end users, including retail, petroleum, quick-serve restaurants, banking, and automotive. Principal Industries was founded in 2010 and is based in San Angelo, Texas.

Buy -

Seller(S) 2

DESCRIPTION

Valesco Industries is a private equity firm focused on growth-oriented small and lower middle-market businesses across the US. Valesco seeks profitable companies with EBITDA of at least $4 million and revenue between $15 and $100 million in the manufacturing, distribution, and business services sectors. The Firm considers both minority and majority positions as well as provides subordinated debt to support owner successions, management buyouts, recapitalizations, and growth financings. Valesco does not invest in start-ups, real estate, financial services, and turnarounds. Valesco Industries was established in 1993 and is headquartered in Dallas, Texas.


DEAL STATS #
Overall 3 of 3
Sector (Electrical Equipment) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Texas) 1 of 1
Country (United States) 3 of 3
Year (2024) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-07-03 Earthlite

Vista, California, United States

Earthlite manufactures massage equipment including, stationary and electric lift massage tables, massage chairs, massage accessories, and massage therapy supplies. It has a wide selection of products for various massage therapy needs. Earthlite was founded in 1987 and is based in Vista, California.

Buy -
SELLER

Brookside Capital Partners

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2001
PE ASSETS 1.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Brookside Capital Partners is an investment management firm focused on stable lower-middle market companies in the US. The Firm typically commits $5 to $30 million per transaction to support buyouts, leveraged recapitalizations, strategic acquisitions and growth. Potential businesses generally have revenue greater than $15 million, and EBITDA of at least $4 million. Industries of interest include business services, consumer, distribution, healthcare, manufacturing, and transportation and logistics. Brookside Capital Partners was established in 2001 and is based in Stamford, Connecticut.


DEAL STATS #
Overall 23 of 24
Sector (Electrical Equipment) 1 of 1
Type (Secondary Buyout) 12 of 13
State (Texas) 3 of 3
Country (United States) 23 of 24
Year (2024) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-10-23 Hoffman Engineering

Stamford, Connecticut, United States

Hoffman Engineering provides proprietary situational awareness solutions for mission-critical aerospace and defense applications. Hoffman Engineering was founded in 1955 and is based in Stamford, Connecticut.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-11-21 Flow Service Partners

Mount Juliet, Tennessee, United States

Flow Service Partners is a provider of essential services including heating, ventilation, air conditioning, and refrigeration ("HVACR") and plumbing services in Florida and Indiana. Flow Service Partners was founded in 2021 and is based in Mount Juliet, Tennessee.

Sell -