Graham Gives Good Tidings This New Year
January 11th, 2016
Graham Partners, a private investment firm focused on investing in businesses with advanced industrial technologies, innovative product offerings, and strong growth potential, is pleased to announce three recent liquidity events. The firm exited one platform, B+B SmartWorx (“B+B”), and completed dividend recapitalizations for two additional platform companies, Tidel Engineering, L.P. (“Tidel”) and Chelsea Building Products, Inc. (“Chelsea”). These events follow Graham’s December 2015 sale of SP Industries, Inc. (“SP”), a leading designer and manufacturer of state-of-the-art scientific equipment and precision labware. Under Graham’s ownership, SP’s EBITDA increased by 55%, driven by innovative product launches, proprietary add-on acquisitions, and cost savings initiatives.
Headquartered in Ottawa, IL, B+B is a designer and manufacturer of industrial connectivity and communications solutions. Under Graham’s ownership, B+B established a company culture focused on innovation and product development, driving 30% EBITDA growth for the company since acquisition. Additionally, Graham worked closely with B+B’s management team to complete three add-on acquisitions, capitalizing on the conversion from isolated manufacturing equipment to a fully integrated and networked manufacturing environment.
Tidel, a global provider of smart safe solutions, is a technology leader driving the conversion to advanced cash management technologies. Since Graham’s acquisition of the company in February 2015, Tidel has experienced strong growth driven by product demand, newly added accounts and cost savings initiatives. As a result of this performance, Graham completed a dividend recapitalization returning approximately 80% of fund invested capital in the company within 10 months of ownership.
Chelsea, a designer and manufacturer of rigid vinyl window and door systems and other specialty building products, has experienced strong performance primarily driven by new product introductions, significant cost savings and strategic customer acquisitions. Since Graham’s acquisition, the company has added 23 new customer accounts. As a result, Graham completed a dividend recapitalization returning approximately 120% of fund invested capital in the company. As the company continues to win new business and develop innovative products, it is well positioned to capitalize on the continued housing market recovery as well as the industry conversion to energy efficient windows driven by stricter energy codes.
Graham Partners expects 2016 to be an eventful year, with several portfolio companies slated to be sold and a full pipeline of platform businesses and add-on acquisitions being evaluated. Steve Graham, CEO and Senior Managing Principal of Graham Partners, states, “Many of our portfolio companies have exhibited significant growth in the past year, and are positioned for near-term success due to their high levels of engineering know-how and constant innovation. We’re pleased to be able to return significant capital back to our investors as a result of this strong portfolio-wide performance.”
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