Blackford Capital's Burgaflex North America Acquires Burgaflex GmbH
Stuttgart, Germany Supplier Reunites with North American Manufacturer
FENTON, Mich., April 8, 2015 /PRNewswire/ -- Burgaflex North America, a leading manufacturer of coolant system tube and hose assemblies serving the heavy truck, agricultural and off-road markets, today announced the acquisition of Burgaflex GmbH, a Germany-based supplier of tube and hose assemblies for the heavy truck, bus, construction and agricultural equipment industries.
Founded in 2001, Burgaflex GmbH currently employs 45 people and anticipates the company growing to more than 60 employees over the next five years as a result of this transaction. The company operates out of its 25,000-square-foot facility and predominantly serves the aftermarket.
"Burgaflex NA and Burgaflex GmbH were both previously part of the Burgaflex Group, which disbanded in 2010. Now, five years later, the companies are reunited and stronger than ever," said David Kennedy, CEO of Burgaflex NA. "Our team has a strong relationship with Burgaflex GmbH, which will make for a smooth transition and integration of the two businesses."
The transaction marks the first international acquisition for Burgaflex NA, and will provide them with a key European location to help better service their global OEM customer base.
"In approaching this acquisition, we factored in the strategic importance of international business," said Jeremy Sheppard, President of Burgaflex NA. "We are confident that we can aggressively grow the business and improve the profitability through an increased focus on both operational efficiency and systems integration."
Blackford Capital, a Grand Rapids, Mich.-based private equity firm who partnered with Burgaflex NA in July of 2014, helped facilitate the acquisition. Both parties are excited about the company's anticipated growth and international exposure.
"International expansion is a fundamental component of the Burgaflex NA growth strategy, and we expect to see continued synergies as the two companies begin to fully integrate," said Martin Stein, Managing Director of Blackford Capital and Chairman of Burgaflex NA. "We are eager to move forward with the acquisition, and believe this transaction will help strengthen the business and better serve our customers."
About Blackford Capital
Blackford Capital is a private equity firm based in Grand Rapids, Mich., that acquires, manages and builds middle-market manufacturing, distribution and service companies, with seven portfolio companies across the country. Blackford reviewed roughly 4,813 transactions in 2014, and has closed 33 transactions in the past seven years. The firm's investment criteria includes mature, profitable businesses with revenues between $20 million and $100 million, with management teams that are either willing to remain with the company or are seeking to retire. For more information, visit www.blackfordcapital.com.
About Burgaflex NA
Burgaflex NA is a leading manufacturer of tube and hose assemblies for the heavy truck and agriculture markets. Since 2004, Burgaflex NA has been meeting the growing needs of a diverse range of customers by focusing on manufacturing quality products at competitive prices. For more information, visit www.burgaflexna.com.
SOURCE Blackford Capital
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