Generational Equity Announces Acquisition of Kussmaul Electronics by Mission Critical Electronics and Evolve Capital

DALLAS, March 17, 2011 /PRNewswire/ -- Generational Equity, a leading advisor to privately-held and family-owned businesses for mergers and acquisitions, is pleased to announce the sale of its client, Kussmaul Electronics Co., Inc. to Mission Critical Electronics, Inc., a holding of Evolve Capital. The transaction closed on January 31, 2011, led by Managing Director, Tom Staszak from the firm's Dallas, Texas headquarters.  Kussmaul's legal team included Joe Hoffman, a corporate and securities partner at Andrews Kurth LLP and Mike Belford, Esq.  Financial guidance for Kussmaul was from Robert King CPA of King and Associates, CPA, PC.

Founded in 1967, Kussmaul designs and manufactures electronic equipment for emergency response vehicles and other electronic applications for customers throughout the world.  The Company, based in West Sayville, NY, has a core customer base in the emergency response vehicle niche, particularly with fire fighting vehicles. Terms of the transaction were not disclosed.  

"Kussmaul Electronics is a specialized manufacturer that has been perfecting their products for more than 40 years.  They have set the standard for the design and manufacture of critical components for emergency response vehicles," said Tom Staszak. "Throughout 2010, strong M&A interest existed for manufacturers of products for the emergency response vehicle industry. M&A in this area is expected to remain strong into 2011."

"The entire team at Evolve Capital was a pleasure to work with," said Ernest Kussmaul, founder and CEO of Kussmaul. "We were most impressed with their diligent efforts to work through the issues that arose throughout the transaction process. They were extremely professional and we were successful in achieving our ultimate goal, which was to be acquired by a group that would lead Kussmaul solidly into the future with growth and stability."  

Mr. Kussmaul continued, "The marketing efforts of Generational Equity resulted in numerous offers for the Company and the auction process enabled us to have a high level of confidence with the valuation and terms that were achieved."  

"Identifying and negotiating with multiple buyers that have a strategic reason to acquire our clients is where the Generational Equity team can really add value to a transaction," said Generational Equity President Ryan Binkley. "This transaction is another example of a successful marketing and negotiation process by our professionals resulting in a lucrative transaction for both buyer and seller."

Jeff Baker of Evolve Capital commented, "We are extremely pleased to have acquired Kussmaul Electronics.  The company is an ideal complement to our existing holdings in this segment.  Our Mission Critical Electronics platform will manufacture an array of specialized electronic products for the marine, telecommunications and emergency/specialty vehicle industries and provide our customers with coast-to-coast service."

Tom Nugent, a 20-year veteran of Kussmaul Electronics will be immediately promoted to president of Kussmaul.  "I am excited to partner with Evolve Capital and Mission Critical Electronics," stated Mr. Nugent. "The combination of the two companies will complement Kussmaul's established product lines and outstanding employee base that has served our customers so well over the years.  The combined company will continue to serve our customers at a high level and we are very happy to have Evolve Capital and Mission Critical Electronics as our new partners."

About Evolve Capital

Evolve Capital is a private investment firm specializing in leveraged recapitalizations of entrepreneurial businesses with EBITDA between $2.5 million and $4.0 million. The firm's investment focus is primarily on service or asset-light businesses, with investments spanning a diverse range of industries including mission-critical electronic products, healthcare services, specialty food products and others.  Evolve Capital was founded in 2005 and is based in Dallas, Texas.

About Generational Equity

Generational Equity provides mergers, acquisitions, strategic growth advisory services, and information for privately held and family-owned businesses to exit their business successfully. Generational Equity uses a four-phase approach that includes education, financial analysis and reporting, sales documentation and deal-making ability to offer business owners an unparalleled level of commitment and experience, all focused on helping to release the generational equity and wealth in every business.  Generational Equity is headquartered in Dallas, TX, and has more than 200 professionals in North America. For more information visit the website at www.genequityco.com or www.gecpress.com.  

SOURCE Generational Equity