January 23, 2023
2022 – An Exceptional Year for Shorehill Capital
2022 was an outstanding year for Shorehill Capital and our portfolio companies. We added world-class talent, and we completed noteworthy platform investments, add-on acquisitions, and exits. In addition, both Shorehill and our portfolio companies continued to be recognized as leading institutions. We are excited to highlight some of these developments and accomplishments. While we enter 2023 with some economic uncertainty, we firmly believe our portfolio and the Shorehill investment strategy are well-positioned to thrive.
Adding World-Class Talent
2022 was an active year for human capital additions at both Shorehill and our portfolio companies. We recruited or promoted smart, collaborative, driven executives into critical positions.
- In April 2022, Tim Trzebiatowski joined Shorehill as a Managing Director on the investment team, reuniting with Shorehill team members with whom he worked from 2010 to 2012. He joined Shorehill after eight years with The Stephens Group, LLC, where he was a Managing Director on the investment team.
- Randy Ball was appointed CEO of Tribus Aerospace LLC (“Tribus”) in January 2022. Randy has over 30 years of experience in general management, operations and supply chain at multiple aerospace and defense manufacturing and repair companies. His operational expertise is proving to be highly valuable.
- In May, Kaycee Wirsig joined Triad Technologies, LLC (“Triad”) as Chief Financial Officer. She brings to Triad over fifteen years of experience as a financial executive across a variety of manufacturing and distribution markets, and her analytical expertise has elevated the entire Triad team.
- Also in May, Matt Meyer was named CFO of Tribus. Matt brings over eighteen years of financial and accounting leadership to the role. Matt has become a critical partner to Randy and the Tribus team as they execute critical components of our investment management plan.
- In August, Greg Wissman was appointed CEO of Triad. Greg joined Triad in 2016 after completing General Electric’s Operations Management Leadership Program and serving in GE’s Aviation Division. Former CEO Doug Wissman was named Chairman of Triad’s Board of Directors. Greg’s short CEO tenure has been active as the business broadened its geographic coverage into Illinois and completed a strategic acquisition in December 2022.
- Mark Fernandes was promoted to Chief Executive Officer of Functional Devices, Inc. (“FDI”) in November. Mark joined FDI in 2003 and served in various leadership roles until being named FDI’s President in 2014. Mark has overseen significant growth in the business throughout his tenure, but especially during Shorehill’s involvement with FDI.
2022 was a highly productive year for Shorehill and our portfolio companies.
- In August, Shorehill announced the sale of portfolio company Belt Power LLC (“Belt Power”) to Platte River Equity. Shorehill retained a minority ownership stake in the business. Since 2014, Shorehill worked with the management team to enhance company leadership through internal promotions and the addition of outside talent, to build a culture of employee engagement, to install standard operating procedures across the organization, and to increase Belt Power’s focus on delivering uptime and maximum production output for customers. In addition, Shorehill worked with the Belt Power leadership team to transform the business into formidable growth engine, expanding from three locations to twelve locations via new branch openings and five add-on acquisitions.
- Shorehill formed Ascent Lifting, Inc. in September and simultaneously completed the acquisitions of a majority interest in Advantage Sales & Supply Co. and Susquehanna Wire Rope & Rigging, LLC. Both companies are value-added distributors and fabricators of lifting and rigging products. We intend to leverage our distribution expertise and build a national platform focused on the distribution of rigging equipment used in industrial and commercial applications.
- In July, Shorehill portfolio company Flexpak, LLC completed the acquisition of ACE Packaging of AZ (“ACE”). Headquartered in Phoenix, ACE is a value-added distributor and supplier of packaging products serving the healthcare, transportation, food, and other industrial and consumer markets. The acquisition marked Flexpak’s expansion into Arizona and is consistent with our strategy to build the leading packaging supplier in the Mountain West region.
- In November, portfolio company Power Grid Components, Inc. (“PGC”) completed the acquisition of Meister International (“Meister”). Meister distributes high and medium voltage porcelain and polyester insulators, bushings and related utility hardware. This strategic acquisition strengthens PGC’s suite of insulator and related utility products.
- In December, Triad completed the acquisition of Industrial Service Products (“ISP”), an Illinois-based industrial hose distributor. ISP sells hoses, tubing, and fittings to the Illinois and Indiana markets, significantly enhancing Triad’s Midwest footprint.
In addition to the above transactions closed in 2022, at year end Shorehill portfolio companies had agreed to terms with three additional strategic add-on acquisitions that are all expected to close in the first quarter of 2023. Prudent use of leverage across our portfolio has served us well in this environment and has allowed us to continue to invest in our businesses’ pursuit of both organic and acquisition-related growth initiatives.
Shorehill and our portfolio companies were also recognized in 2022 for their unique cultures and differentiated business models.
- In November, Inc. magazine announced its annual list of top Founder-Friendly Investors. For the fourth consecutive year, Shorehill was included on the list. Shorehill is one of only fourteen private equity firms, and the only Chicago-based firm, to appear on this select list each year since its inception in 2019.
- In October, Shorehill portfolio company FDI was inducted into the Manufacturers Hall of Fame by the Indiana Manufacturers Association. FDI was also honored in October to be included on the Indiana Chamber of Commerce’s inaugural list of the “Best Places to Work in Manufacturing” in Indiana.
The Shorehill team is eager to continue the momentum, and we believe we are a preeminent buyer of industrial businesses in the lower middle market:
Focus We are a Chicago-based private equity firm with a passion for building superior companies. We are focused on making equity investments in North American engineered industrial products, industrial services, and value-added distribution companies with EBITDA between $3 million and $15 million and add-ons of any size.
Experience For nearly 30 years Shorehill’s partners have worked with middle market business leaders to accelerate growth and improve operational performance through structured investment management plans. We seek opportunities with differentiated business models where the team’s experience, network and investment management approach can have a significant impact on the performance of the business. Our substantial experience is complemented by our Executive Advisor Network, a group of 70 thought leaders within our target sectors who support our investment efforts through investment referrals, diligence insights, and critical roles on portfolio company boards of directors.
Trust We are a management-friendly buyer, as evidenced by our repeated presence on Inc.’s list of top private equity firms for entrepreneurs. The partnerships we create with owners and management teams are further evidence of this trust. Over 130 executives have become equity partners with Shorehill across the seven businesses in which we have invested. Regardless of whether we acquire businesses from private owners or institutional owners, Shorehill can be counted on to be a good steward of the founders’ and prior owners’ legacies.
We remain confident in our investment strategy and we expect to be active investors in this uncertain market. We invite you to visit our website to learn more about Shorehill (www.ShorehillCapital.com). Please reach out to our Business Development team (Rob Hogan and Thomas Sigle) related to new investment opportunities.