Gamut Capital has signed an agreement to acquire JPW Industries, a manufacturer, designer and distributor of shop tools and equipment, from Tenex Capital Management. Tenex has owned JPW since November 2013 when it was acquired from Switzerland-based Walter Meier AG.
JPW’s shop tools and equipment are sold under the JET, Powermatic, Wilton, Edwards and Promac brand names and include metalworking and woodworking machinery, vises and clamps, ironworkers, lifting systems, air and hand tools and related parts and accessories. The company has approximately 4,000 SKUs sourced from over 400 active supply partners and sells through a network of approximately 3,000 national and independent distributors, wholesalers, dealers, and online retailers.
During Tenex’ ownership of JPW, the company completed one add-on acquisition. In July 2016, JPW acquired Edwards Manufacturing, a family-owned manufacturer of industrial ironworkers, hydraulic accessory tools, ironworker tooling, punches and dies, and other specialty tools. The company was founded in 1875 and is headquartered in the southern Minnesota city of Albert Lea (www.edwardsironworkers.com).
JPW, founded in 1958, has more than 270 employees worldwide and is headquartered in the Nashville suburb La Vergne, TN (www.jpwindustries.com).
JPW is led by Robert Romano who will remain with the company as CEO under Gamut ownership. Mr. Romano will also join the company’s Board of Directors. “We have enjoyed our partnership with Tenex and deeply value their strategic input and guidance,” said Mr. Romano. “As we enter our next phase, we are excited to have the support of Gamut and look forward to leveraging their experience and resources as we continue to grow.”
At the close of the transaction, which is expected by the third quarter of this year, Stephen Van Oss, a Gamut Operating Partner, will join JPW’s Board of Directors as Non-Executive Chairman.
“JPW has set the standard for quality, reliability, innovation and service across a broad range of applications and end users,” said Stan Parker, Founding Partner of Gamut. “We are delighted to partner with JPW and its strong management team to accelerate its development.”
Gamut Capital invests from $50 million to $150 million in leveraged buy-outs, corporate carve-outs, strategic partnerships, and distressed-for-control situations. Industries of interest include agriculture, chemicals, telecom, industrials, mining, power, distribution, technology, energy, and transportation. The firm closed on its debut fund, Gamut Investment Fund I, LP, in January 2017 with $1 billion of capital commitments. Gamut Capital was founded in 2015 by Stan Parker and Jordan Zaken – both former senior partners at Apollo Global Management – and is based in New York (www.gamutcapital.com).
Tenex Capital Management, the seller of JPW, invests up to $100 million in middle-market companies in the industrial, manufacturing, and health and business services sectors. The firm has $452 million of committed capital and is based in New York (www.tenexcm.com).
Goldman Sachs Bank USA, BMO Harris Bank and BNP Paribas have providing financing commitments for the transaction. BB&T Capital Markets was the financial advisor to JPW and Goldman Sachs & Co. was the financial advisor to Gamut.
© 2017 Private Equity Professional | July 21, 2017