Senior management has acquired Certified Power from RSTW Partners

Lincoln International, a leading mid-market investment bank, today announced the management buyout of Certified Power, Inc. (“Certified Power”) by the company’s senior managers. Based in Mundelein, Ill., Certified Power is a leading designer, assembler and distributor of fluid power systems and subassemblies for manufacturers and dealers of industrial machinery and mobile equipment; the company is also a specialized manufacturer of precision machined powertrain assemblies and components for manufacturers of off-highway mobile equipment. Certified Power was formerly a portfolio company of RSTW Partners.

Serving as the exclusive financial advisor to Certified Power’s senior managers, Lincoln International structured, arranged, and negotiated the management buyout. This included structuring the transaction, negotiating a letter of intent with RSTW Partners, and arranging the private placement of $25.0 million in senior credit facilities and $9.25 million of junior capital to complete the acquisition. Lincoln International also assisted with the negotiation of the purchase agreement and related credit documents.

Lincoln International worked closely with Certified Power’s executive management team throughout the transaction.

“Our team has spent the last ten years improving the company’s business model and we believe Certified Power is well-positioned for future success,” said Jerry Bost, chief executive officer, Certified Power. “Lincoln International brought us the idea to pursue a management buyout, which would allow us to capitalize on our past accomplishments and the company’s future growth potential. After speaking with Lincoln, we were convinced of the merits and achievability of this approach.”

“Through Lincoln’s experience and relationships, we were able to take advantage of the favorable conditions in the financing markets and acquire the company, substantially increasing our ownership stake in the business,” added John Brignon, chief financial officer, Certified Power. “Lincoln International provided us with the guidance and advice we needed to structure the transaction and obtain financing that allowed us to complete a management buyout.”

About Certified Power, Inc.

Certified Power is a leading designer, integrator, assembler and distributor of fluid power systems, subassemblies, components, and accessories. The company serves a diverse base of original equipment manufacturers (“OEMs”) and dealers of industrial machinery and mobile equipment used in the mobile, snow and ice, industrial machinery, forestry equipment, and aerial lifts end markets. In addition, the company is a specialized manufacturer and supplier of high quality, driveline assemblies and related precision machined powertrain subassemblies and components for OEMs of off-highway machinery and equipment. These products are typically used in the mobile, material handling, pumping, heavy construction, industrial, and agricultural end markets. Certified Power’s value-added design and engineering capabilities, history of product innovation, high quality manufacturing processes, and superior customer service have resulted in longstanding relationships with global, blue-chip off-highway vehicle OEMs, manufacturers of industrial machinery, manufacturers of construction equipment, and truck equipment dealers servicing local and state governments. Certified Power is headquartered in Mundelein, IL, and has manufacturing facilities in Illinois, Iowa, Minnesota, Ohio and Wisconsin.

Certified Power RSTW Partners LP 2007
  • 2007
    Close Year
  • Business Services
    Industry
  • PE Backed
    Client Type
  • Strategic | Domestic
    Transaction Type
  • USA
    Countries

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