Merit Capital Partners has sold Engendren to Cummins

Engendren

Engendren, based in Kenosha, Wisconsin, is a leading provider of heat transfer solutions in North America. Engendren sells its products under the IEA, Silver Linings Systems and ArcRon brands. The company offers a comprehensive portfolio of radiator packages, heat exchangers, industrial coolers, fluid coolers and chillers and data center enclosures for mission critical applications. The company serves a variety of end markets, including data center, military and defense, energy and mobile electric, among others. For more information, please visit www.engendren.com.

The Deal

Over its history of more than 40 years, Engendren has built a market leading position through its unmatched technical and design expertise, exceptional product quality and best-in-class customer service. Merit Capital Partners provided subordinated debt to support the acquisition of Engendren in partnership with management. During its partnership, Merit provided significant support on several strategic initiatives, including enhancing Engendren’s product mix, strengthening its original equipment manufacturer customer relationships, optimizing strategic pricing opportunities and investing in operational improvements.

Lincoln International leveraged its industry expertise, extensive acquirer relationships and ability to highlight Engendren’s growth attributes to drive a competitive process and achieve a strong outcome. Lincoln acted as the exclusive financial advisor to Engendren and Godfrey & Kahn served as legal counsel for Merit. The terms of the transaction were not disclosed.

John Darguzas, Principal at Merit Capital Partners, commented, “We were honored to have partnered with Engendren in growing the business and look forward to the team’s future success alongside its new partner.”

Our Perspective

Adam Gifford, Lincoln International Managing Director who led the transaction, commented, “It was a pleasure to partner with Merit Capital on another engagement and the Engendren management team in finding a strategic home for the business. The company is uniquely positioned to capitalize on attractive tailwinds in the data center, military and defense and other diverse power end markets. Going forward, we expect Engendren will benefit from the significant resources and expertise that Cummins provides, while preserving the strength of its core business.”

Merit Capital Partners

Merit has raised more than $2.7 billion of capital through seven institutionally sponsored limited partnerships. Merit invests both equity and mezzanine capital in middle-market companies, principally in manufacturing, distribution and services industries. Merit focuses on recapitalizations and buyout transactions, primarily in partnership with family-owned companies, existing owner-managers and with independent sponsors. Merit will continue to invest in high quality, established businesses with strong management teams and carefully conceived operating strategies. For more information, please visit www.meritcapital.com.

Cummins

Cummins, a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. Headquartered in Columbus, Indiana, Cummins employs approximately 75,500 people, committed to powering a more prosperous world. It operates a robust distribution and support network in more than 190 countries and territories. Cummins reported net sales of approximately $34.1 billion for the year ended December 31, 2023. For more information, please visit www.cummins.com.

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