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News Category: Recent Transactions

Chartwell is pleased to announce D.P. Nicoli, Inc. has completed a recapitalization transaction whereby 100% of its equity ownership will be transitioned to a newly formed Employee Stock Ownership Plan (ESOP). In support of future growth, Chartwell raised a senior credit facility provided by CIT, a division of First Citizens Bank, and a mezzanine credit facility provided by Cyprium Partners. The CIT and Cyprium Partners credit facilities offer D.P. Nicoli (the “Company”) strategic partnerships to facilitate long-term growth and the generation of meaningful retirement assets for ESOP participants via significant capacity, flexibility, vision, and cultural alignment with the Company’s founder and employees. Chartwell acted as the exclusive financial advisor to D.P. Nicoli throughout the transaction and the associated capital raises.

“At some point in an entrepreneur’s life, succession planning must take center stage. My number one goal was to preserve the Company’s best assets, its employees and corporate culture,” said Dave Nicoli, Founder and CEO of D.P. Nicoli. “By transitioning ownership of the Company to our employees, not only have I met that goal, but I have created the opportunity for a life changing event for the very people who have worked so hard to make this Company what it is today.”

Following a comprehensive review of strategic alternatives led by Chartwell, including the solicitation of indications of interest from potential acquirers, the Company elected to proceed with the Transaction and 100% ESOP ownership to foster continued employee engagement, bolster employee retention and recruitment efforts, provide increased retirement benefits, proliferate the safety and employee-first culture and legacy created by Dave Nicoli, and embark on a strategic ownership transition.

“I couldn’t be happier with the outstanding outcome realized for our employees and shareholders, which was only possible with the dedicated expertise and guidance Chartwell provided. Chartwell kept the vision and mission of D.P. Nicoli at the forefront in each step of the process, ensuring D.P. Nicoli and its employees were set up for success and continued growth. We can’t thank Chartwell enough for its role in achieving a life changing outcome for all of D.P. Nicoli and ensuring that the culture and legacy of the Company perseveres for generations.”

— Dave Nicoli, Founder & Chief Executive Officer, D.P. Nicoli

“We were continuously impressed by Chartwell’s ESOP and capital markets expertise and support for the management team in all facets of this process. This Transaction transformed not only our ownership structure but also provided us with the capital necessary to execute on our growth plans. Chartwell provided us with expert guidance across a wide range of topics including succession planning, ESOP design, capital structure, soliciting M&A offers, and tax considerations. We are extremely excited about our future as an employee-owned company, our partnership with CIT and Cyprium Partners, and the long-term growth and success to come for D.P. Nicoli.”

— Stephanie Nanna, Chief Operating Officer, D.P. Nicoli

About D.P. Nicoli

Based in Lake Oswego, Oregon, D.P. Nicoli is one of the largest and most respected independent rental providers of steel plate and shoring equipment to public utilities, regional and municipal governments, and underground contractors on the West Coast. Founded in 1982 by Dave Nicoli with a steadfast commitment to ensuring safe jobsites for customers, the Company has grown to ten locations across California, Oregon, Washington, and Idaho. The Company provides a homogenous, one-stop resource for the shoring and safety needs of the heavy construction industry renting steel plates, shoring, slide rail, pipe plugs, and other products.

Chartwell Contact

For additional information on this transaction and learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.

Chartwell is pleased to announce the recapitalization of Pen-Link, Inc. with Spire Capital Partners in partnership with management. With Spire’s deep sector expertise and network of relationships, this partnership positions PenLink (the “Company”) to further enhance its solution offerings, customer support capabilities, and accelerate growth domestically and internationally. Chartwell served as the exclusive financial advisor to the Company and the Special Committee of its Board of Directors, providing comprehensive, unbiased counsel focused on ensuring an optimal outcome for all parties, including its Employee Stock Ownership Plan (ESOP) and management shareholders, as well as other stakeholders such as customers, industry partners, and employees.

“As a leading private equity investor in govtech and technology-enabled companies, with an exceptional track record of partnering with management teams to build category leaders, Spire Capital is an ideal partner for PenLink,” said Kevin Pope, PenLink’s CEO. “Their demonstrated success over 20 years of investing in middle market companies, deep expertise in both software and law enforcement, and the value-added resources they bring uniquely position them to help PenLink deliver even greater value to our customers, accelerate our growth, and execute on acquisitions.”

“PenLink’s breadth and depth of solution offerings and unmatched customer support creates truly differentiated services for law enforcement officers who are protecting our country,” said Sean White, Partner at Spire Capital. “Kevin and the team have done an incredible job growing the Company, expanding beyond traditional telephonic communication analysis to the cutting edge of social media data analysis. Spire Capital looks forward to assisting management in executing on their vision for the Company.”

Based in Lincoln, Nebraska, PenLink is a leading global provider of state-of-the-art, judicially mandated communication collection and analysis solutions for law enforcement. The Company leverages the passionate support for law enforcement across its employee base to develop and market an industry-standard setting suite of capabilities for local, state, federal, and international crime fighting agencies to conduct judicially authorized wiretaps and collect, store, analyze, and create actionable insights from communication datasets that commonly exceed billions of individual records and interactions.

PenLink originally formed an ESOP in 2007 to reward and incentivize its employees for their continued dedication to growing the Company. Over the subsequent 15 years, PenLink, guided by Mr. Pope and his best-in-class management team, has grown into one of the largest communication collection and analysis providers in the fast-growing law enforcement software market.

Following a review of strategic alternatives led by Chartwell and the Special Committee, the Company elected to proceed with a sale transaction.  In executing the transaction, Chartwell leveraged its in-depth expertise in ESOPs and M&A transactions to create differentiated positioning of the business, leading to a vibrant market for PenLink and ultimately a successful transaction that enabled the ESOP, management, and shareholders to recognize an impressive premium over prior expectations.

“We are extremely pleased with the outcome realized by Chartwell for the benefit of our employees through the ESOP. While we considered many firms to advise us in this process, Chartwell’s unique positioning of PenLink, unrivaled M&A and ESOP experience, and guidance through a comprehensive marketing process resulted in the best possible outcome, and Chartwell more than delivered on every commitment they made to us. Chartwell’s team is personally invested in our success and fought for us at every step – no way we could have achieved this tremendous result without them.”

— Kevin Pope, Chief Executive Officer, PenLink

“We have been continually impressed by Chartwell’s M&A expertise, ability to navigate around the complexities of an ESOP in a broad marketing process, and support for the management team in all facets of this process. As the most experienced advisors to ESOP-owned companies exploring a sale, Chartwell provided valuable insights that resulted in a superior outcome to that which would likely have been attained by other advisors.  In doing so, Chartwell navigated a number of complex financial issues while also creating in-depth analyses to help management portray their vision of the Company and its future, which culminated in a premium result for our employees.”

— Pat Severson, Chief Financial Officer, PenLink

Founded in 1986, PenLink is a leading global provider of state-of-the-art communication collection and analysis solutions for law enforcement. The Company offers a deep suite of software solutions which allows law enforcement, ranging from state and local, federal, and international, to analyze massive amounts of data and create actionable insights. PenLink’s solutions are mission-critical to law enforcement, allowing them to conduct communication-based investigations and create the insights which support their ongoing missions. The Company is based in Lincoln, Nebraska.

About Spire Capital Partners

Spire Capital is a private equity firm with an investment focus in small market companies within the technology-enabled business services, media, communications, and education sectors. Spire Capital is a New York-based investment advisor founded on the principle of partnering with management teams and founders to help effectuate the next stage of growth for their companies. Spire professionals have a broad array of past operating, investing, and advisory experiences they leverage to help portfolio companies accelerate growth, guide strategic direction, and execute their business plan.

Chartwell Contact

For additional information on this transaction and to learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.

Chartwell is pleased to announce the sale of Binkley & Barfield, Inc. to DCCM. Chartwell acted as exclusive financial advisor to Binkley & Barfield (“BBI” or the “Company”) throughout the transaction, providing comprehensive, unbiased counsel on the sale of the Company.

BBI’s leadership believes its corporate vision of creating a better future for its clients and communities will be more easily achieved in partnership with DCCM to become a more innovative, diverse, sustainable, customer-focused firm. Further, BBI recognizes the strong alignment between the cultures and values of both firms. The combination will showcase BBI’s local Texas presence while increasing its depth of service, resources, and talents.

BBI engaged Chartwell to lead and execute throughout the transaction process. With expertise in M&A, the architectural and engineering industry, and ESOP structures, Chartwell provided objective counsel and facilitated negotiations on behalf of all the shareholders–each with different goals and objectives–to ensure a successful outcome for all parties.

“Selling a family business is not something that I took lightly. Chartwell’s experienced team of advisors took the time to learn and understand the needs of our leadership team which resulted in a well-executed transaction. The team kept the process focused and organized resulting in a win/win outcome with DCCM. Being an ESOP company adds complexity that requires specialized knowledge, which Chartwell helped us navigate. I highly recommend the Chartwell team.”

— Brett Binkley, CEO, Binkley & Barfield

About Binkley & Barfield

Binkley & Barfield is a multidisciplinary engineering consulting firm with headquarters in Houston, Texas and fully staffed regional offices in College Station, Corpus Christi, Richardson, Round Rock, and San Antonio. Incorporated in 1971, the firm has served their clientele for over 50 years.

Binkley & Barfield provides a comprehensive range of engineering services including utility engineering and coordination, subsurface utility engineering, power, telecommunications, pipeline, construction management, transportation, structural, traffic, infrastructure (including roadway, drainage, water, and wastewater), land development, and GIS.

About DCCM

DCCM is a provider of design, consulting, and program & construction management professional services focusing on infrastructure marketplaces throughout the public and private sectors. Through a family of complementary brand companies, DCCM serves a variety of end markets while offering a national reach.

DCCM is aggressively hiring key industry professionals in all disciplines and is actively seeking further acquisition opportunities throughout North America.

Chartwell Contact

For additional information on this transaction, please contact Joe Skorczewski. To learn more about Chartwell’s corporate finance capabilities, please contact Wil Becker.

Chartwell is pleased to announce a majority equity sale of S. J. Electro Systems (SJE) to Audax Private Equity. The investment from Audax comes as SJE aims for continued growth and expansion within the controls industry. Chartwell served as the exclusive financial advisor to SJE, providing the board of directors and management M&A advice throughout the transaction process.

About SJE

Founded in 1975, SJE is a leading controls technology company throughout the U.S. and Canada, as well as into global markets. SJE is comprised of well-respected brands — CSI Controls, PRIMEX, SJE Rhombus — all known for their innovation and quality. With locations throughout the U.S. and Asia and expertise in the reliable integration of engineering and manufacturing capabilities from control panels utilizing embedded circuit board technology to complete control and monitoring systems designed and built to individual specifications, SJE offers a wide variety of control products for residential, commercial, municipal, and industrial markets.

SJE will look to benefit from the strategic and financial resources Audax brings to its portfolio companies. These resources will help drive investments in the business, support growth strategy, and enable SJE to continue pursuing acquisitions.

About Audax Private Equity

Audax Group is a leading alternative investment manager with offices in Boston, New York, and San Francisco. Since its founding in 1999, the firm has raised over $27 billion in capital across its Private Equity and Private Debt businesses. Audax Private Equity has invested over $6 billion in more than 135 platforms and over 950 add-on companies, and is currently investing out of its $3.5 billion, sixth private equity fund. Through its disciplined Buy & Build approach, Audax seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. With more than 250 employees and over 100 investment professionals, the firm is a leading capital partner for North American middle market companies.

Chartwell Contact

For additional information on this transaction, please contact Dan Kaczmarek. To learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.

Chartwell is pleased to announce the sale of Simeone Deary Design Group to KTGY Architecture + Planning. Chartwell acted as exclusive financial advisor to Simeone Deary (“SDDG” or the “Company”) throughout the transaction, providing comprehensive, unbiased counsel on the sale of the Company.

SDDG’s leadership believes there is a strong alignment between the cultures and values of both firms. The combination of its interior design and branding expertise with KTGY’s architecture platform will provide new opportunities for collaboration and drive innovative ideas for clients. In addition, the Company’s hospitality focus will help to inform designs in the residential environment where KTGY has already established itself as a visionary in the industry.

SDDG engaged Chartwell to lead and execute the full transaction process. With Chartwell’s in-depth expertise in architecture, engineering, and design, Chartwell provided objective counsel and facilitated negotiations on behalf of the Company to ensure a successful outcome.

“Chartwell was key in guiding us though the acquisition process. They performed significant due diligence, provided clear, precise advice, and recommended great partner consultants when needed. The Chartwell team remained calm and patient throughout the process and were able to help us negotiate the deal we wanted. Their design industry expertise was invaluable to us during this journey. Most importantly, Chartwell’s team was always available to us, even in the midst of a global pandemic!”

— Lisa Simeone & Gina Deary, Co-Founders, Simeone Deary Design Group

About Simeone Deary Design Group

Simeone Deary Design Group, established in 2002 by Lisa Simeone and Gina Deary, is an award-winning interior design firm with a passion for creating boundary-pushing designs that evoke emotion, forge connections and are as experiential as they are functional. Chicago-based but globally focused, SDDG combines worldwide perspectives with its Midwestern values to bring to life spaces and experiences brimming with both possibility and purpose. From conceptual design and interior architecture to graphics and branding, Simeone Deary Design Group approaches each project through a lens of possibility and purpose, creating transformative and highly personalized journeys that shape the guest experience.

About KTGY Architecture + Planning

Celebrating 30 years of design excellence, KTGY Architecture + Planning is a leading architecture and design firm focused on residential, retail, and mixed-use developments and neighborhood revitalization. KTGY seamlessly delivers innovation, artistry, and attention to detail across multiple design studios, ensuring that clients and communities get the best the firm has to offer no matter the building type or location. KTGY’s architects and planners combine big picture opportunities, leading-edge sustainable practices, and impeccable design standards to create memorable destinations of enduring value. KTGY serves clients worldwide from offices located in Chicago, Denver, Irvine, Los Angeles, Oakland, and Tysons.

Chartwell Contact

For additional information on this transaction, please contact Chris Staloch. To learn more about Chartwell’s corporate finance capabilities, please contact Wil Becker. 

Chartwell is pleased to announce that Challenge Manufacturing has successfully completed the refinancing of its senior debt. The newly-funded indebtedness provides Challenge (the “Company”) with financial flexibility and liquidity to support continued growth from significant recent new business awards. The financing package includes an expanded revolving credit facility and refinancing of its senior secured term loan. Chartwell acted as the exclusive financial advisor to Challenge throughout the transaction, providing counsel to the board of directors and senior management team.

Incumbent lenders Wells Fargo and Bank of America remain as working capital lenders to the Company, while WhiteHawk Capital Partners has entered the relationship as a term loan lender. Each capital provider expressed their eagerness and excitement to take part in the next chapter of the Company’s story. Challenge is an employee-owned Tier One automotive manufacturer of advanced modular assemblies and engineered metal- formed products, providing comprehensive solutions for OEMs.

“Challenge is extremely pleased with Chartwell facilitating the refinancing of our existing indebtedness and additional lending capacity which will allow more flexibility and capital to support our long-term strategic and financial plan. Throughout each step of the process, Chartwell provided valuable, comprehensive analyses and advice on a myriad of topics and considerations that allowed our management team and Board of Directors to make highly informed decisions. We truly appreciate the work Chartwell put forth and look forward to working with Chartwell on our future capital needs.”

— Doug Bradley, CEO, Challenge Manufacturing

“Chartwell continues to remain a trusted financial advisor to our Company as demonstrated through their commitment to our business and understanding of our financial needs. Chartwell was able to implement an optimal debt structure that will positively impact our employee shareholders’ equity value. Our partnership with Chartwell has been instrumental to Challenge’s success and we look forward to our continued partnership.”

— Mike Rodgers, CFO, Challenge Manufacturing

About Challenge Manufacturing

Founded in 1981, Challenge Manufactruing has remained dedicated to supporting OEMs as a critical manufacturer of advanced modular assemblies and engineered metal-formed products. The Company is the largest employee-owned automotive supplier in the United States and remains dedicated to the wellbeing of its employee-owners.

Chartwell Contact

For additional information on this transaction, please contact Will Bloom. To learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.

Chartwell is pleased to announce that Oxbow Industries and Arcspring Capital have acquired Vectair Systems. Chartwell acted as the exclusive financial advisor to Oxbow and Arcspring throughout the transaction, providing counsel and facilitating negotiations to ensure the acquisition financing was in place. Supporting the transaction and providing bank and non-bank capital were HSBC Bank and Northstar Capital.

Vectair Systems is a world-renowned innovator, manufacturer, and supplier of aircare, washroom, skincare, surface cleaning, feminine hygiene, and infant care products. Vectair has its own in-house engineering and design team, developing both private label and customer OEM products from initial concept to final tooling approval. Vectair Systems was founded in 1988 and services over 130 countries across the globe.

Oxbow Industries is a private equity firm that specializes in investing in high-quality businesses within the middle market. Oxbow assists portfolio companies in numerous ways, including raising capital for corporate growth and providing liquidity for owners. Based in Minneapolis, Minnesota, Oxbow has successfully invested over $2.5 billion in corporate finance transactions.

Arcspring Capital is a private equity firm based in Atlanta, Georgia that utilizes a micro-vertical approach in areas that are undergoing a fundamental shift driven by technology. Arcspring partners with companies in the industrial, services, transportation and logistics, sport, and health and wellness sectors. Arcspring supports management buyouts and provides growth capital in the range of $5.0 million to $50.0 million.

“Chartwell is a trusted advisor to Oxbow and has acted as the primary agent in a number of transactions over the years. We were again pleased with Chartwell for providing critical assistance during the capital raise process. Thanks to Chartwell’s hard work, we have achieved an optimal outcome and can now focus on developing our partnership with Vectair.”

— Andy Coulter, Partner, Oxbow Industries

“Chartwell’s guidance was instrumental in securing a new facility for the transaction. Chartwell ran an efficient process to secure financing for a time-sensitive acquisition that generated value for all parties involved. We are grateful for Chartwell’s advice throughout the process and look forward to working with them again in the future.”

— Jordan Lamb, Partner, Arcspring Capital

Chartwell Contact

For additional information on this transaction, please contact Will Bloom. To learn more about Chartwell’s corporate finance capabilities, please contact Greg Fresh.

Chartwell is pleased to announce the sale of Wenck Enterprises, Inc. to Stantec Consulting Services Inc. Chartwell acted as exclusive financial advisor to Wenck (the “Company”) throughout the transaction, providing comprehensive, unbiased counsel on the sale of the Company.

Wenck and Stantec had a working relationship and were actively collaborating on projects and teaming on future opportunities. Wenck’s leadership believes combining with Stantec will provide both the economic and strategic resources necessary to further expand the Company’s service offerings and accelerate its geographic and market growth plans. In addition, the combination will provide growth opportunities for Wenck’s employees and more comprehensive capabilities to serve clients.

Wenck engaged Chartwell as its exclusive financial advisor to lead and execute a complex transaction involving the sale of a 100% ESOP-owned company. With Chartwell’s in-depth expertise in ESOPs and M&A transactions, Chartwell provided objective counsel and facilitated negotiations on behalf of the Company to ensure a successful outcome.

“Chartwell has been our trusted advisor since 1999, assisting Wenck during multiple stages of growth and with issues related to employee ownership. As we have valued Chartwell’s partnership for so many years, it seemed natural to turn to them to lead us through this transaction. Having Chartwell manage the process and communication with all parties was immensely helpful to keep myself and the management team focused on the business. I was very impressed with Chartwell’s expertise and guidance and the superior outcome for our ESOP participants and Wenck. We are all part of the Wenck family and our new partnership with Stantec will present excellent opportunities for all current and future employees. We are extremely excited about the future of Wenck and Stantec.”

— Rod Ambrosie, CEO, Wenck Enterprises

About Wenck

Founded in 1985, Wenck provides holistic environmental, engineering, construction, and response solutions to both private and public clients throughout the U.S. and Canada. Wenck’s full spectrum services and core expertise in air, water, food, natural resources, and infrastructure has helped business and industries meet their regulatory compliance and quality of life needs while protecting the world’s most essential resources.

Wenck’s seasoned leadership team transformed the company structure to support continued geographic and market expansion while creating a supportive corporate culture. Their multi-disciplinary and united team of engineers, scientists, construction, and business professionals deliver technical expertise and transform concepts into meaningful results for their clients.

About Stantec

Stantec provides professional infrastructure and facilities consulting services for public and private sector clients in Canada, the United States, and internationally. The company offers consulting services in engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management and planning, and project economics. Stantec serves the urban regeneration, infrastructure, education, energy, industrial, building, tourism and leisure, and waste and water sectors, as well as office and commercial, residential, and retail and town centers. Founded in 1954, Stantec is a publicly traded company on the TSX and NYSE and is headquartered in Edmonton, Canada.

Chartwell Contact

For additional information on this transaction, please contact Wil Becker. To learn more about Chartwell’s corporate finance capabilities, contact Greg Fresh.

Chartwell is pleased to announce the sale of Exactec, Inc. to Presence From Innovation (PFI), a portfolio company of Capital For Business (CFB). The combination of these two entities presents an excellent opportunity for PFI to further penetrate the competitive point-of-purchase retail display market, especially within the high-end display sector for national retail accounts. Chartwell served as the exclusive financial advisor to Exactec (the “Company”), providing comprehensive, unbiased counsel to its sole shareholder, Ken Carney.

PFI is a manufacturer and distributor of retail store displays and fixtures, providing custom injection-molded single-serve coolers, specialized retail racks, and other fixtures made of plastic, wood, metal, and wire designed to drive consumer brand preference and purchasing decisions. PFI boasts a highly tenured base of clients ranging from Fortune 50 B2C companies to small independent retailers and craft consumer brands. PFI is located in St. Louis, Missouri and was founded in 1956.

Also headquartered in St. Louis, CFB is a middle-market industrial growth investment firm committed to providing capital to manufacturing and value-added industrial services companies. CFB takes a collaborative approach with investments by partnering with strong management teams to provide the resources and board-level guidance necessary to succeed.

PFI’s ambition lies in horizontal expansion via new customer acquisition and product portfolio expansion and quickly saw value in a combination with Exactec early in the sale process. Exactec’s high-end product and quality capabilities will provide PFI with access into new corners of the point-of-purchase retail display market. Additionally, the tenured blue-chip customer relationships that Exactec has cultivated will allow PFI to cross-sell into numerous national retail client accounts from day one. These advantages, in addition to significant operational synergies, will set the foundation for a bright future for both companies.

“This is an excellent outcome for all parties involved and Chartwell was instrumental in achieving this. Chartwell took the lead in each step of the sale process with detailed analysis and thoughtful guidance at all times. I feel very fortunate to have chosen Chartwell to lead me through this extremely important process for my business and my family and I am extremely confident this combination with PFI will result in expanded opportunities for both companies.”

— Ken Carney, President & Owner, Exactec

About Exactec

Headquartered in Chaska, Minnesota, Exactec is a leading provider of custom designed, high quality point-of-purchase displays and fixtures for retailers, consumer packaged goods manufacturers, and third-party point-of-purchase display firms. The Company provides clients with a one-stop-shop experience through a unique suite of capabilities ranging from initial CAD drawings to comprehensive manufacturing and the nationwide distribution of finished goods.

“We were honored to work with Ken and his team in the sale of Exactec. Their position in the marketplace, strong leadership team, and customer-centric culture created a compelling story for potential buyers. We were happy to find the right fit with PFI in terms of culture and transaction structure and are delighted to have achieved a great outcome for Ken and the management team.”

— Wil Becker, Managing Director, Chartwell

Chartwell Contact

For additional information on this transaction, please contact Wil Becker. For more information about our corporate finance capabilities, please contact Greg Fresh. 

Chartwell is pleased to announce a majority sale of Superior Pump to Pedrollo Group S.p.A. The combination of these two entities presents an excellent opportunity for Pedrollo to penetrate the highly desirable North American water pump market with its newly-owned, well-established platform in Superior Pump. Chartwell served as the exclusive financial advisor to the Michel family and Superior Pump, providing comprehensive, unbiased counsel to the shareholders on the transaction.

Pedrollo is a family-owned, Italian-based pump manufacturer serving industrial and consumer markets in more than 160 countries worldwide. The Pedrollo multi-generational family business has prioritized the creation of sustainable water, energy, and technology solutions for its customers. In recent years, Pedrollo has been particularly acquisitive, with the prioritization of capturing both revenue and operational based synergies from numerous value-add acquisition targets.  This transaction is their first acquisition in North America.

Superior Pump is a producer and distributor of premium pumps designed for commercial and residential use. This multi-generational family business leverages strong and long-tenured manufacturing capabilities to deliver top-tier products for its wide array of North American-based customers. Management consistently maximizes its efforts to prioritize strategic resource allocation on new and existing customers, business development, and new product development. Coming from its long-standing history of family and entrepreneurial values, Superior Pump shares a similar vision and culture with its Italian-based counterpart, making it an optimal acquisition target for Pedrollo.

Pedrollo’s strategic ambition is to capture market share in North America and it sought out partnership with Superior Pump. Throughout an extensive search process, Pedrollo was intrigued by Superior Pump’s strong geographic footprint and excellent supplier relations. Through ensuing conversations with Superior Pump, it was clear that there are many complementary business aspects between these two companies.

Initial negotiations between the two entities began when Pedrollo approached the Michel family on an unsolicited basis to make a minority equity investment in Superior Pump. Through creative, solutions-based restructuring, Chartwell was able to negotiate with Pedrollo to progress from a minority to a majority equity purchase; allowing Charlie Michel (who will remain president of Superior Pump) to retain a minority equity interest. The negotiation and diligence processes were challenging on many fronts, including tariff expense and credits, working capital build-ups and draw-downs, and COVID-19 related anomalies. Pedrollo expects immediate synergies to be recognized in numerous business areas, including collaboration of design know-how, seamless integration of customer networks, and a more comprehensive product portfolio. The combined entity will now have an unparalleled reach into markets across the globe as it aims to leverage its robust manufacturing capabilities and distribution network. Pedrollo’s belief in Superior Pump is evidenced by the dedicated long-term capital commitment and is convinced it has found the right partner in Superior Pump.

“The Michel family is extremely pleased with this partnership as it positions Superior Pump for significant growth and expansion into new markets, fully backed by the support of Pedrollo. We highly value the strategic and tactical M&A advice that Chartwell provided in this transaction process. Chartwell carefully listened to our family objectives which were successfully structured and negotiated in our transaction with the Pedrollo family.”

— Charles (Chip) Michel Jr., Founder & Majority Owner, Superior Pump

“This is a significant milestone for Superior Pump as we aim to combine our world-class pumps with a supreme partner like Pedrollo. We are delighted to be a part of Pedrollo’s strategic expansion plan in North America and look forward to spearheading these strategic efforts. The Pedrollo platform presents excellent synergies and cross-selling opportunities for both companies. Chartwell provided invaluable advice and insights throughout the M&A process, navigating through a number of complex financial issues while also successfully coordinating and providing due diligence requirements and reports during these unprecedented times.”

— Charles (Charlie) Michel III, President, Superior Pump

About Superior Pump

Headquartered in Minneapolis, Minnesota, Superior Pump is a leading designer, manufacturer, and provider of high-quality water pumps sold to an extensive customer base including specialty retailers, wholesalers, distributors, and direct to consumer online. Consisting mainly of pumps, the Company’s wide product portfolio is tailored to incorporate numerous applications, spanning utility, sump, sewage, lawn and irrigation, pools, and more. Since 1932, the Michel family has established an extensive track record and unparalleled reputation in the plumbing industry.

“We are absolutely delighted to have the opportunity to represent the Michel family in this transformational transaction. It was clear from the beginning of discussions that this transaction would be extremely beneficial for both parties. With Superior Pump’s excellent manufacturing capabilities and comprehensive product portfolio, we knew this was the right opportunity for Superior and Pedrollo to maximize their operations into new international markets. Superior Pump’s North American sales and marketing capabilities will provide Pedrollo many strategic benefits in the years to come. We would like to also thank all of the transaction professionals, both on the Michel and Pedrollo side, for their professionalism, creativity, and responsiveness during these unprecedented times.”

— Greg Fresh, Managing Director, Chartwell

Chartwell Contact

For additional information on this transaction, please contact Greg Fresh.

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