Leading designer, manufacturer, distributor, and servicer of highly engineered, functionally critical specialty heating, ventilation and air conditioning (“HVAC”) products in heavy industrial and commercial markets.
Gryphon Investors Sells Potter Global Technologies to KKR
Gryphon Investors (“Gryphon”), a leading middle-market private equity firm, announced today that it has completed the sale of its portfolio company Potter Global Technologies (“Potter” or “the Company”) to investment funds managed by KKR, a leading global investment firm. Gryphon originally invested in the Company in December 2017. Potter will continue to operate under its current management team, led by Chief Executive Officer Gerry Connolly.
Headquartered in St. Louis, MO, Potter is a trusted global provider of fire safety and emergency communication products that protect people and buildings during emergency situations. Potter’s leading products are used for monitoring fire safety systems, detecting fires and other life-threatening events, and notifying and communicating with building occupants and first responders to ensure safe and efficient evacuations and responses. The Company has designed and manufactured proprietary products since 1898 and serves customers across diverse end markets including education, multi-family, industrial, and healthcare.
Leigh Abramson, Partner and Co-Head of Gryphon’s Industrial Growth Group, said, “Gerry and the Potter management team have done a tremendous job in growing Potter through the introduction of new product innovations, delivering operational enhancements and expanding product sets and capabilities through acquisitions. Potter is a great example of Gryphon’s highly differentiated, integrated deal and operations model where meaningful incremental investments in people and systems have led to sustained success. We are extremely pleased with the Company’s trajectory and believe KKR will be a great partner to take Potter to the next level.”
Potter CEO Gerry Connolly commented, “Gryphon’s support and differentiated expertise gave us the resources to expand our market presence and drive growth significantly above our markets. Working with their outstanding operating partners and advisors, we were able to enlarge our R&D and engineering teams, introduce next-generation connected products, and expand our global reach, all of which have contributed to our bottom line and our evolution as a go-to brand in fire safety and emergency communications.”
Wes Lucas, Industrial Growth Operating Partner and Co-Head of Gryphon’s Operations Resources Group, added, “In our early days with Potter, the Company had one product and one manufacturing plant. Through strategic acquisitions, organic growth and operational initiatives, the Company has grown significantly, expanded its addressable market, and is now recognized as a global leader. We are proud of what our partnership with the Potter team has accomplished, and we believe the Company will have a great future under its new owners.”
Harris Williams and Raymond James served as financial advisors to Gryphon, and Kirkland & Ellis LLP acted as legal advisor.
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About Potter Global Technologies
Potter Global Technologies is the leading independent designer and manufacturer of life safety and emergency communication solutions. Through its various business brands, Potter provides fire suppression, alarm and communications systems, mass notification systems, first responder RF radio communications, and advanced power products. The company motto is “We Save Lives” and their employees appreciate the role they play and value working for a company that is making a difference through protecting people, property and critical infrastructure. Their mission is to make buildings and people safer from fire, natural disasters, and acts of violence. Throughout their longstanding 125-year history of developing industry leading technology, Potter has earned a reputation for best-in-class product quality and customer service. The company is headquartered in St. Louis, Missouri, with sales, engineering, and manufacturing centers in the Americas, Europe, and Asia. Discover more about Potter Global Technologies at www.potterglobaltech.com.
About Gryphon Investors
Gryphon Investors (www.gryphoninvestors.com) is a leading middle-market private equity firm focused on profitably growing and competitively advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, and Software sectors. With approximately $9 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and executives to accelerate the building of leading companies and generate enduring value through its integrated deal and operations business model. Gryphon’s highly differentiated model integrates its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, human capital acquisition and development, treasury, finance, and accounting expertises. Gryphon’s three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $350 million per portfolio company. The Junior Capital strategy targets investments in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon’s targeted investment sectors.
Gryphon Investors to Acquire Leading Specialty HVAC Company AirX Climate Solutions
Gryphon Investors (“Gryphon”), a leading middle-market private equity firm, announced today that it has agreed to acquire AirX Climate Solutions (“ACS” or the “Company”), a leading designer, manufacturer, distributor, and servicer of highly engineered, functionally critical products for the specialty heating, ventilation, and air conditioning (“HVAC”) markets.
Gryphon’s investment will support ACS’ exciting growth initiatives, including broadening its geographic footprint, expanding its aftermarket and service offerings, and executing strategic acquisitions. As part of the transaction, ACS’ CEO Rick Aldridge and other members of management will reinvest alongside Gryphon and will continue to manage the Company. Gryphon is acquiring the Company from private equity firm L Catterton, and the transaction is expected to close in the fourth quarter of 2023. Financial terms were not disclosed.
Founded in 1997 and headquartered in Oklahoma City, OK, ACS is a full-service, specialty HVAC solutions provider. The Company offers design, installation, maintenance, and repair of heating, ventilation, and air conditioning systems for specialized solutions across a diverse set of end markets, including telecommunications, data centers, energy storage, rental, educational, industrial, and commercial markets. With a workforce of over 600 people, ACS prides itself on delivering best-in-class service through its highly trained team and engineering capabilities.
“We are excited to invest in ACS and to partner with Rick and the Company’s talented management team,” said Scott Hearn and Leigh Abramson, Co-Heads of Gryphon’s Industrial Growth Group. “We believe ACS, with its longstanding reputation for high-quality products and outstanding customer service, is an ideal platform upon which to further its leadership position in this large and highly fragmented market. We will leverage Gryphon’s deep experience in the HVAC sector through our investments in Right Time and Southern Home Services, along with our successfully realized investment in Heritage Distribution Holdings, to help ACS continue to evolve.”
Mr. Aldridge said, “We are delighted to partner with Gryphon as our next investor. Their depth of knowledge in HVAC and network of executive advisors will open several avenues for our next phase of growth. Our entire team remains fully committed to serving our customers with the highest levels of quality and service.”
Mark Fuller, Managing Director in Gryphon’s Industrial Growth Group, noted, “ACS has a proven track record driven by its strong brands, including Custom Air Products & Services (“CAPS”) and Marvair, and its dedication to innovative customer solutions. We are thrilled to support Rick and ACS’ experienced managers, with whom we will prioritize working closely to both accelerate organic growth and pursue add-on acquisitions.”
As part of the transaction, Messrs. Hearn, Abramson, and Fuller will join the Company’s Board of Directors alongside Mr. Aldridge. The transaction marks Gryphon’s fourth investment in the HVAC value chain and follows the firm’s successful exit of Heritage Distribution Holdings earlier this year.
Jefferies and William Blair served as financial advisors to Gryphon. Baird and Nomura acted as financial advisors to ACS on the transaction. Kirkland & Ellis LLP acted as legal advisor to Gryphon.
About AirX Climate Solutions
ACS provides highly engineered, cooling and ventilation specialized solutions serving mission-critical applications across a diverse set of end markets, including telecommunications, data centers, energy storage, rental, educational, and industrial, and commercial markets. For decades, the Company has been the preferred choice for organizations requiring high-quality and highly configurable HVAC systems operating in harsh environments. With over 600 employees, ACS operates its manufacturing footprint across Houston, TX, Cordele, GA, and Tulsa, OK with brands that include Custom Air Products & Services (“CAPS”), Marvair, Specific Systems, Eubank, Industrial Climate Engineering (“ICE”) and Dynaline. For more information about AirX Climate Solutions, please visit https://airxcs.com/about.
About Gryphon Investors
Gryphon Investors (www.gryphoninvestors.com) is a leading middle-market private equity firm focused on profitably growing and competitively advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, and Software sectors. With approximately $9 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and executives to accelerate the building of leading companies and generate enduring value through its integrated deal and operations business model. Gryphon’s highly differentiated model integrates its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, human capital acquisition and development, treasury, finance, and accounting expertises. Gryphon’s three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $350 million per portfolio company. The Junior Capital strategy targets investments in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon’s targeted investment sectors.
Miabella Trent
Miabella is responsible for analyzing, executing, and monitoring investments within Gryphon’s Industrial Growth Group, including current portfolio companies Transportation Insight and Vessco Water.
Brian Bonilla
Brian is responsible for analyzing, executing, and monitoring investments within Gryphon’s Industrial Growth Group, including current portfolio companies, Vessco Water and Transportation Insight.
Scott Hearn
Currently serves on Gryphon Company Board:
AirX Climate Solutions
Vessco Water
Scott joined Gryphon in 2022 as an Operating Partner in Gryphon’s Industrial Growth Group. In his role, Scott works closely with senior management teams at Gryphon portfolio companies to maximize short and long-term operating and financial performance through strategic, commercial, and operational improvements.
Scott has over 30 years of experience in global industrial business leadership, with a track record for building organizational capability, accelerating top line growth, and expanding profitability. Scott has led business transformations in manufacturing-based companies in industries ranging from electrical solutions, to various building systems, to disruptive technologies.
Techmer PM, a Leading Producer of Advanced Engineered Materials and Masterbatch Products, Announces an Investment from Gryphon Investors to Accelerate Growth
Techmer PM, LLC (“Techmer PM” or “the Company”) announced today that it has received a majority investment from Gryphon Investors (“Gryphon”), a leading middle-market private equity firm. Techmer PM’s founder John Manuck, the Company’s management team, and SK Capital, a private investment firm with a focus on the specialty materials, chemicals, and pharmaceuticals sectors, will remain investors in the company alongside Gryphon. The terms of the deal were not disclosed.
Founded in 1981, Techmer PM is known for its development of innovative materials which add functionality to materials, including fast-growing technologies, such as composites and additive manufacturing. The Company serves customers across a diverse set of global markets serving many leading consumer products and packaging, healthcare, and building product OEMs. Techmer PM CEO Mike McHenry will continue to lead the Company, supported by the existing management team.
“The Techmer team has significantly improved the overall business performance in a very challenging market environment. We are excited by the additional support, expertise, and resources that will come from Gryphon’s investment,” said Mr. McHenry. “We have a number of commercial strategies to expand our offering and deliver first-class service to a diverse customer base, and we believe that Gryphon, alongside SK Capital, gives us additional operational and capital resources to help Techmer maximize its potential in enabling brand success for our customers.”
Techmer PM represents Gryphon’s fourth investment in the materials and chemicals sector. The firm’s previous acquisitions include Pacur, a market-leading supplier of specialty plastic packaging materials for the medical device industry; Kano, a branded penetrating oils and lubricants producer; and Vivify Specialty Ingredients, a leading provider of specialty organic colorants, functional ingredients, and additives.
“With our investment in Techmer PM, we are excited to partner with another leader in the advanced materials space,” said Craig Nikrant, Gryphon Operating Partner. “Techmer PM is at the forefront of delivering functional performance in some of the most critical and active areas of today’s economy, including weather resistance, light-weighting, and sustainable materials.”
Deal Partner and Head of the Industrial Growth Group at Gryphon Leigh Abramson added, “We see great potential for the company to grow its global reach and continue investing in technologies and capabilities that enable its customers to deliver the most innovative and complex projects. We look forward to partnering with Mike, his management team, and SK Capital as we work together to identify and pursue organic growth opportunities and strategic acquisitions.”
Techmer PM operates six production sites strategically located throughout North America, serving customers globally. It focuses on high-performance applications where quality, technical support, and problem-solving are critical in the design and delivery of engineered materials.
Piper Sandler served as financial advisor to Techmer PM in this transaction. Guggenheim Securities served as financial advisor to Gryphon in this transaction.
About Techmer PM
Founded in 1981 and based in Clinton, TN, Techmer PM is a materials design company specializing in modifying and fine-tuning the properties of technical polymers. The company thrives on collaborating with plastics processors, fabricators, designers, specifiers, and brand owners. Drawing on a broad portfolio of resins –– from polyolefins to PEEK –– Techmer PM helps manufacturers enhance product function and appearance in scores of end-use markets. The firm operates six North American plants and has extensive expertise in virtually every plastic- and fiber-related process, from additive manufacturing and blown film to nonwovens, injection molding, and sheet extrusion. Techmer PM has been recognized six times since 2014 by Plastics News on its list of “Best Places to Work” in North America’s plastics industry. Learn more at www.techmerpm.com.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. As of December 31, 2021, the firm has over $9 billion of assets under management. Gryphon targets making equity investments of $50 million to $300 million in portfolio companies with enterprise values ranging from approximately $100 million to $600 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.
About SK Capital
SK Capital is a private investment firm with a disciplined focus on the specialty materials, specialty chemicals, and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK Capital aims to utilize its industry, operating, and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth, and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $16 billion annually, employs more than 20,000 people globally, and operates 203 plants in 32 countries. The firm currently has approximately $6.6 billion of assets under management. For more information, please visit www.skcapitalpartners.com.
Techmer PM
A leading designer and producer of advanced engineered materials, including custom color and additive masterbatch solutions used in the plastics and fiber industries.
Gryphon-Backed Heritage Distribution Holdings Appoints Brian Sasadu as Chief Human Resources Officer
Heritage Distribution Holdings (“Heritage” or the “Company”), an Atlanta-based market-leading wholesale distributor of HVAC/R equipment, parts, supplies, and customer service backed by leading middle-market private equity firm Gryphon Investors (“Gryphon”), today announced that Brian J. Sasadu has joined the Company as Chief Human Resources Officer, reporting to Chief Executive Officer Alex Averitt.
Mr. Sasadu has over 20 years of human capital and legal experience in distribution, manufacturing, and service organizations, with a track record of building best-in-class HR techniques, processes, and programs. In his role, he will have responsibility for developing and executing high-impact human capital strategies, programs, and services that engage employees, drive business results, and support the strategic growth of the Company.
Craig Nikrant, Operating Partner at Gryphon, said, “We are excited to welcome Brian to Heritage as we put together a best-in-the-industry management team with the background and expertise to profitably scale the business.”
Mr. Sasadu was most recently the Chief Human Resources Officer at BlueLinx Holdings, Inc., a wholesale distributor of building materials and industrial products. Prior to that, he held a variety of leadership roles at Coca-Cola Refreshments (formerly Coca-Cola Enterprises), ultimately serving as the Senior Vice President of Human Resources responsible for human resources for the manufacturing and distribution assets of The Coca-Cola Company in the United States and Canada. Mr. Sasadu started his professional career at King & Spalding LLP, an international law firm, where he focused on representation and counsel to management on a wide range of labor and employment compliance and litigation matters. He holds both a Bachelor of Arts in Political Science and a Juris Doctor from the University of Florida.
“Brian’s strong business acumen, diverse manufacturing and distribution background, and expertise in guiding people strategy in organizations makes him extremely well qualified to lead our human capital efforts in our next phase of growth,” said Mr. Averitt. “I am very excited to have Brian join our leadership team. I know he will help design and foster an environment for all employees that will allow them to maximize their potential and help us realize our strategic goals, all while maintaining the Company’s distinctive culture.”
About Heritage Distribution Holdings
Heritage Distribution Holdings platform is an umbrella company that encompasses several brands of leading HVAC/R distributors across eight states. The platform currently includes three long-standing brands: Wittichen Supply Company, a wholesale distributor of HVAC/R equipment, parts, supplies, and customer service to residential and commercial customers based in the Southeastern United States; Benoist Brothers Supply Company, a Midwest-based regional distributor of HVAC/R equipment, parts, and supplies; and Ed’s Supply Company, a wholesale distributor of HVAC/R equipment, parts, and supplies across Arkansas, Georgia, Kentucky, and Tennessee.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. As of December 31, 2021, the firm has had over $9 billion of assets under management. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.
Gryphon Investors Acquires Ed’s Supply
Gryphon Investors, a leading middle-market private equity firm, today announced it has acquired Ed’s Supply Company, Inc. (“Ed’s Supply” or “the Company”), a wholesale distributor of HVAC/R (heating, ventilation, air conditioning, and refrigeration) equipment, parts and supplies with 19 locations across Arkansas, Georgia, Kentucky, and Tennessee. Financial terms of the transaction were not disclosed.
Gryphon plans to operate the Company as an independent division of its Heritage Distribution Holdings platform, which recently rebranded from Wittichen Supply Holding Company. Ed’s Supply will join two existing companies, Benoist Brothers Supply Company, a Midwest-based regional distributor of HVAC/R equipment, parts and supplies, and Wittichen Supply Company, a wholesale distributor of HVAC/R equipment, parts, supplies, and customer service to residential and commercial customers based in the Southeastern United States.
Craig Nikrant, Gryphon’s dedicated Operating Partner to its Heritage Fund team, said, “We are excited to add Ed’s Supply to our multi-region distribution platform as we continue to expand. The Company’s proud history and focus on top-quality customer service makes it a great fit with our family of brands. With a growing multi-regional reach, we see a bright future for Heritage Distribution Holdings in an industry with a long runway for growth.”
Headquartered in Nashville, Tennessee, Ed’s Supply serves both the commercial and residential markets and features one of the largest inventories of HVAC/R parts, equipment and air distribution products in the Southeast. Steve Byram, former president of Ed’s Supply, will become an advisor to the Heritage Distribution Holdings management team. His son Tucker Byram, most recently Vice President of Operations, Nashville, will become President, and the current management team will remain with the Company.
Alex Averitt, CEO of Heritage Distribution Holdings, said, “We are thrilled to welcome the entire Ed’s Supply team. Their robust product and service offerings are highly complementary to our existing lines and their strategic footprint will help us round out our presence in the attractive Southeast market.”
Steve Byram noted, “We are delighted to become part of Gryphon’s Heritage Distribution Holdings platform with its broad financial and operational resources. As part of a larger organization with a reputation for superior customer service, Ed’s Supply will continue to deliver premium service as we take advantage of additional growth opportunities.”
Heritage Distribution Holdings was advised by legal counsel Kirkland & Ellis. Waller Lansden Dortch & Davis, LLP served as legal counsel to Ed’s Supply, PNFP Capital Markets, Inc. served as exclusive financial advisor to Ed’s Supply, and Lakoff & Co. served as accounting advisor to the Company.
About Ed’s Supply
Founded in 1957 and based in Nashville, Ed’s Supply (www.edssupply.com) has been a leading wholesale distributor and service provider for over 60 years, committed to serving the unique needs of the local contractor community. With 19 locations in three distinct regional markets covering Georgia, Tennessee, Kentucky, and Arkansas, the company boasts one of the largest inventories of HVAC/R parts, equipment and air distribution products in the Southeast. Serving both the residential and commercial markets, Ed’s Supply offers products and services ranging from refrigeration system design and compressor solutions to temperature control, air purification systems, and professional training seminars.
About Heritage Distribution Holdings
Heritage Distribution Holdings platform is an umbrella company that encompasses several brands of leading HVAC/R distributors across eight states. The platform currently includes three brands: Wittichen Supply Company, a wholesale distributor of HVAC/R equipment, parts, supplies, and customer service to residential and commercial customers based in the Southeastern United States; Benoist Brothers Supply Company, a Midwest-based regional distributor of HVAC/R equipment, parts and supplies; and Ed’s Supply Company, a wholesale distributor of HVAC/R equipment, parts and supplies across Arkansas, Georgia, Kentucky, and Tennessee.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. As of December 31, 2021, the firm has over $9 billion of assets under management. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.