News
PNC Equity Partners Acquires Portec Group International, Inc.
Pittsburgh, PA [March 24, 2005] - On March 24, 2005, PNC Equity Partners acquired Portec Group International, a leading designer, manufacturer and marketer of components and sub-systems used in the material handling industry. PNC Equity Partners provided $12.8 million of equity and $5.0 million of subordinated debt to finance the transaction. Senior debt was provided by General Electric Capital Corporation.
Portec operates through three primary divisions: Flomaster, Werner and J Richards Inc. Flomaster manufacturers power turn conveyors and other material handling equipment for the airport baggage handling and warehousing and distribution markets. Werner manufacturers motorized pulleys used in the retail checkout counter market. JRI provides engineering and manufacturing services involving steel tubing and cutting. Applications include retail treadmill rollers, automotive products and aluminum bats. Portec has an estimated 60% market share of the North American turn conveyor market and an estimated 80% market share of the retail store motorized pulley market. Headquartered in Toledo, Ohio, the Company also has facilities in Canon City, Colorado; Concord, Ontario and Bicester, United Kingdom.
"PNC Equity Partners' focus on long-term value creation fits well with our existing corporate strategy," commented Larry Weber, Chief Executive Officer of Portec. "We are excited about the opportunity to team with PNC Equity Partners and believe that this partnership will help the company capitalize on its future growth opportunities."
PNC Equity Partners will be represented on the Company's board by Peter Del Presto and Justin Bertram. Russ Wilson was also actively involved in the acquisition.
Founded in 1982, PNC Equity Partners, L.P. is the private equity affiliate of The PNC Financial Services Group, Inc. PNC Equity focuses on making equity investments in middle market companies that have enterprise values between $25 million and $125 million. Our equity investments are typically in support of change of control leveraged buyouts, recapitalizations and large minority financings. PNC Equity Partners targets companies that operate in the niche manufacturing, value-added distribution and outsourced services industries.
