MPE Partners Finalizes Major Acquisition of 80/20 Solutions
MPE Partners, a well-regarded name in private equity, has achieved a significant milestone with the successful sale of 80/20 to Littlejohn & Co. The sale reflects MPE's commitment to partnering with industry-leading firms, especially those that are entrepreneur- and family-owned.
Transforming the Modular Framing Market
80/20, based in Columbia City, Indiana, has established itself as the North American leader in premium configurable modular framing solutions. The Company serves a wide range of sectors focused on automation, productivity, and safety applications. With an extensive portfolio of more than 8,500 customizable SKUs and top-tier lead times, 80/20 has positioned itself as a go-to for over 60,000 users each year.
Innovative Manufacturing Capabilities
One of the standout characteristics of 80/20 is its advanced in-house machining capabilities. This technology, coupled with its effective distribution model that integrates automation integrators, MRO distributors, and eCommerce channels, enables the Company to offer precise, quick-turn solutions. Their investment in automation and design tools has significantly boosted productivity and service efficiency, helping them maintain a competitive edge in the burgeoning modular framing market.
Leadership Insights on the Sale
Karen Tuleta, a Partner at MPE, expressed pride in the collaboration with 80/20. According to her, MPE's multifaceted strategy has been crucial in enhancing organic growth and improving service times. The partnership has provided 80/20 with a strong foundation for future innovation and value-adding initiatives. Doug Waldal, CEO of 80/20, highlighted the strategic support received from MPE, which played a vital role in scaling operations and expanding their commercial reach.
A Strong Commitment to Innovation
Throughout this transition, the transformation at 80/20 has been notable. Joe Machado, another MPE Partner, remarked on the dedication from all stakeholders involved, which has maintained a customer-centric focus. By preserving 80/20’s unique culture of innovation, they are confident in its trajectory towards future success.
Key Players in the Transaction
The advisory landscape for this impactful transaction included Baird acting as the lead financial advisor for 80/20, while Houlihan Lokey provided additional advisory support. Legal counsel was provided by BakerHostetler, and financial due diligence was managed by Forvis Mazars. Although the details of the transaction remain undisclosed, the collaboration highlights the critical advisory roles these firms play in significant corporate transitions.
Understanding 80/20's Market Influence
80/20’s strong market presence is fueled by its versatile product offerings which cater to a variety of applications from machine frames, robotic platforms to material handling equipment. Their adaptability in product design—backed by proprietary software—enhances customer satisfaction and facilitates rapid procurement processes.
About MPE Partners
MPE Partners is dedicated to being the preferred investment partner for entrepreneur- and family-owned companies. With a base in Cleveland and Boston, this firm focuses on investing in smaller, profitable companies, specifically in high-value manufacturing and commercial services. MPE aims to support businesses in achieving their growth objectives while ensuring strategic alignment and organizational enhancement.
Frequently Asked Questions
What was the primary purpose of the sale between MPE Partners and 80/20?
The sale aimed to facilitate the continued growth and innovation potential of 80/20, enhancing its market leadership in modular framing solutions.
How does 80/20 continue to serve its customer base effectively?
80/20 utilizes an omni-channel go-to-market strategy that includes diverse distribution networks, enhancing their reach and customer service.
Who were the key advisory partners in the transaction?
Baird served as the lead financial advisor, with additional support from Houlihan Lokey, BakerHostetler, and Forvis Mazars during the sale process.
What industries does 80/20 primarily serve?
80/20 serves a broad spectrum of industries, focused on automation, productivity, and safety applications, catering to various market needs.
What is MPE Partners' investment focus?
MPE Partners primarily invests in profitable, lower middle-market companies specializing in high-value manufacturing and commercial services.
