Graycliff Partners has sold Electro-Mechanical Corporation to Oaktree Capital Management

Electro-Mechanical Corporation

Electro-Mechanical Corporation (EMC) was founded in 1958 and is headquartered in Bristol, Virginia. With over 600 employees, the company is one of America’s largest privately held manufacturers of electrical apparatus. EMC sells its products under the Federal Pacific, Line Power, Mirus International and GridConnex brands. EMC is recognized throughout the U.S. and around the world for the supply of high-quality power distribution components and unparalleled industry knowledge and customer support. With five manufacturing facilities, including a repair and service division, the company has nearly one million square feet of modern manufacturing facilities located in the U.S., Canada and Mexico. For more information, please visit www.electromechanical.com.

The Deal

EMC was family-owned for more than 60 years before partnering with Graycliff Partners. Under Graycliff’s ownership, EMC executed several strategic initiatives, including bolstering the sales function, expanding the footprint with the addition of a 110k square foot facility in Mexico, diversifying the supply chain and completing a complementary add-on that expanded the product portfolio. Graycliff and EMC turned to Lincoln International, given its industry expertise, deep acquirer relationships and exceptional process execution in finding the next partner for the company.

Andrew Trigg, Managing Partner at Graycliff Partners, commented, “It has been a pleasure to work alongside the team at EMC to build upon the company’s impressive history and strong reputation. Lincoln’s industry knowledge, paired with deep investor relationships, helped drive dialogue with the best potential partners for EMC.”

Garrett Wentzell, Principal at Graycliff Partners, added, “We believe the company is well-positioned to capitalize on continued opportunities in the power space and are happy to have found a partner in funds managed by Oaktree Capital Management that has resources and expertise to support the company’s next phase of growth.”

Our Perspective

Sean Bennis, Lincoln International Managing Director who led the transaction, commented, “The work completed by Graycliff and the EMC management team has been impressive and the results speak for themselves. EMC stands out as an exceptional power platform serving attractive utility, renewable energy and industrial applications, which are experiencing secular tailwinds due to increasing power demand and a mix shift to renewables. The company is well-positioned for continued growth with Oaktree as its next partner.”

Graycliff Partners

Graycliff is an investment firm focused on making lower middle market investments, typically in manufacturing, business services and value-added distribution businesses. Through dedicated equity and credit funds, Graycliff provides capital for acquisitions, management buyouts, recapitalizations, growth and expansion. For more information, please visit www.graycliffpartners.com.

Oaktree Capital Management

Oaktree is a leader among global investment managers specializing in alternative investments, with $189 billion in assets under management as of December 31, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has more than 1,200 employees and offices in 22 cities worldwide. For more information, please visit www.oaktreecapital.com.

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