Wynnchurch Capital's Bold Move in Industrial Manufacturing
Wynnchurch Capital, L.P., a prominent player in private equity, recently made headlines by selling TH Holdings, a company renowned for its diversified industrial manufacturing capabilities. This significant transaction includes notable brands such as Texas Hydraulics, Hydromotion, and Oilgear, all of which are recognized for their custom-designed hydraulic components.
The Expertise of TH Holdings
TH Holdings is synonymous with excellence in hydraulic solutions, providing an array of services that encompass bespoke engineering and after-market support. These services cater to original equipment manufacturers (OEMs) and aftermarket customers alike, spanning various heavy-duty applications. The company stands out in the mobile, industrial, and energy markets through its three subsidiaries, each specializing in unique hydraulic products.
Discovering Each Brand's Strength
Texas Hydraulics is known for designing and manufacturing large bore, long stroke cylinders, catering to the rigorous demands of the industry. Meanwhile, Hydromotion excels in hydraulic swivels and electrical slip rings, essential for dynamic equipment. On the other hand, Oilgear focuses on pumps, valves, and controls, ensuring top-tier functionality and reliability.
Strategic Insights from Leadership
Frank Hayes, Managing Partner at Wynnchurch, expressed his pride in the progress made during their ownership of TH Holdings. He emphasized the company's strong reputation for engineering products that perform remarkably well in the most challenging environments. Hayes noted how this combination of expertise and passion for manufacturing crafting a compelling value proposition for clients.
During the transition, JD Frank, Principal at Wynnchurch, highlighted the robust growth achieved by TH Holdings across core markets, crediting management for developing exciting new product offerings. Such innovations lay a solid foundation for sustained future expansion.
Feedback from TH Holdings' Leadership
Patrick Taylor, CEO of TH Holdings, recognized Wynnchurch as a valuable partner throughout their collaborative journey. He underscored the support provided by Wynnchurch for driving continuous improvement and executing strategic objectives, paving the way for the next phase of growth.
The Financial Backbone of the Deal
The recent transaction saw financial advisory input from Lazard Frères & Co LLC and Lincoln International, while Perkins Coie LLP offered legal counsel to Wynnchurch, ensuring a smooth transition as they move forward in the industrial landscape.
TH Holdings: A Legacy of Innovation
With roots extending back to 1921, TH Holdings has established a reputation for delivering custom solutions and reliability to demanding applications. Their commitment to quality has fostered enduring relationships with prestigious OEM clients, setting high standards in the manufacturing sector.
Overview of Wynnchurch Capital
Wynnchurch Capital, based in Rosemont, Illinois, has emerged as a leader in the middle-market private equity realm since its inception in 1999. The firm boasts an impressive $9.2 billion in regulatory assets under management and specializes in various investment strategies, including recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Their portfolio includes a spectrum of successful investments, showcasing their capability to identify and nurture business potential.
Wynnchurch's recent acquisition of Principal Industries, a leader in LED components, alongside investments in ORS Nasco and Hydraulic Technologies, are testament to their commitment to fostering growth in high-potential sectors.
Looking Ahead for TH Holdings
The future looks promising for TH Holdings as they embrace new opportunities for growth in the hydraulic solutions industry. With strong leadership and innovative products, they're well-positioned to navigate the challenges of a competitive market.
Frequently Asked Questions
What does Wynnchurch Capital focus on?
Wynnchurch Capital specializes in middle-market private equity investments, focusing on companies poised for significant growth and enhancement.
What are TH Holdings’ primary brands?
TH Holdings operates under three main brands: Texas Hydraulics, Hydromotion, and Oilgear, each contributing unique solutions in hydraulic manufacturing.
How does TH Holdings support its industries?
TH Holdings provides bespoke engineering and after-market support, ensuring that its products meet the demanding needs of various sectors.
What strategies does Wynnchurch employ with its investments?
The firm engages in recapitalizations, management buyouts, growth capital, and corporate carve-outs, focusing on maximizing growth potential.
What is the legacy of TH Holdings?
Founded in 1921, TH Holdings has built a legacy of innovation and reliability in the manufacturing sector, serving various demanding applications.
