Huron Capital Sells Controlling Interest in Systems Holdings Inc. to The Chamberlain Group Inc.
Sale to Strategic Buyer Marks First Exit for The Huron Fund IV LP
DETROIT, Dec. 4, 2017 /PRNewswire/ -- Huron Capital ("Huron Capital") announced today it has sold its controlling interest in Systems Holdings ("Systems") through a sale to The Chamberlain Group, Inc. ("Chamberlain Group"). Headquartered in Germantown, Wisconsin, Systems is a leading manufacturer of hydraulic, pneumatic, and mechanical loading dock leveling equipment, truck restraints, specialty dock equipment and related accessories sold under the Poweramp, DLM and McGuire brand names. Chamberlain Group designs and engineers residential garage door openers, commercial door operators and gate entry systems. Chamberlain Group is beneficially owned by The Duchossois Group.
In May 2016, Huron Capital and Duchossois Capital Management ("DCM") combined efforts to acquire a controlling interest in Systems in partnership with Systems' CEO, Mike Pilgrim. The two firms originally sourced the opportunity to invest in Systems through their network of trusted private company financial advisors. At that time, Huron Capital and DCM determined that it would be strategically important to align Systems with the resources of Chamberlain Group by investing in Systems together. DCM is the capital investment arm of The Duchossois Group and an affiliate of Chamberlain Group. DCM has been a strategic Huron Capital limited partner for the past 18 years.
During its hold period, Huron Capital and DCM together built a board of directors which included seasoned operating partners Ken Goodson and Paul Reilly. With the help of Messrs. Goodson and Reilly and its private equity investors, Systems developed a strategic plan designed to leverage the company's market penetration in commercial dock equipment and introduce new products and technologies targeting a connected dock environment.
"We found in Systems a fundamentally-sound company that needed corporate development resources to design a path for its long-term future," said Mike Beauregard, a Senior Partner at Huron Capital. "To help support the company's plans, we encouraged significantly more investments in new technologies, sales and market development resources than the prior owners. As a result, the business became far more interesting to strategic buyers in the market, and sooner than we anticipated."
Mike Pilgrim, Systems' CEO stated, "I chose Huron Capital and DCM as destination equity partners for my 2016 buyout transaction because of their strategic relationships with companies like Chamberlain Group. Their operating backgrounds, resources and access to companies like Chamberlain Group made Huron Capital my top choice."
Lincoln International served as financial advisor and Honigman Miller Schwartz and Cohn served as legal advisor to Huron Capital and Systems' other shareholders.
About Huron Capital
Based in Detroit, Huron Capital is an operationally-focused private equity firm with a long history of growing lower middle-market companies through our proprietary ExecFactor® buy-and-build investment model. We prefer complex situations where we can help companies reach their full potential by combining our operational approach, substantial capital base, and transaction experience with seasoned operating executives. Founded in 1999, Huron Capital has raised over $1.8 billion in capital through six committed private equity funds and invested in over 140 companies, and our portfolio companies have employed over 11,000 people throughout North America. The Huron Capital buy-and-build investment model includes equity recapitalizations, family succession transactions, market-entry strategies, corporate carve-outs, and management buyouts of companies having revenues up to $200 million. Huron Capital targets both control and non-control equity stakes in fundamentally-sound companies that can benefit from the firm's operational approach to creating value. Huron Capital's sector focus includes business services, consumer products & services and specialty industrials. For more information, please visit www.huroncapital.com.
About Duchossois Capital Management
Duchossois Capital Management is a privately-help, family-owned investment company that creates long-term value by applying its extensive industry knowledge, operational expertise and permanent capital based to a variety of investment opportunities. DCM invests in a wide array of asset classes including private and public companies, private investment funds and real estate. For more information on DCM, visit www.dcmllc.com.
About Chamberlain Group
Chamberlain Group is a global leader in access solutions and products. As the corporate parent company to LiftMaster, Chamberlain, Merlin and Grifco, Chamberlain Group designs and engineers residential garage door openers, commercial door operators and gate entry systems. The firm's products are connected through its innovative MyQ technology which empowers users to control or monitor their entry points through smartphone access. Chamberlain Group is also the parent company to Controlled Products Systems Group, the largest wholesale distributor of perimeter access control equipment in the U.S.
SOURCE Huron Capital
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