FOR IMMEDIATE RELEASE – JANUARY 13, 2020
Power Grid Components, Inc. (“Power Grid”) announced today that it completed the acquisition of Royal Switchgear Manufacturing Company, Inc. (“Royal”). The transaction closed in December 2019 and represents Power Grid’s fourth acquisition. Power Grid is a supplier of high-quality mission critical products used in the North American electric power grid. The Company was formed in 2017 by Shorehill Capital LLC (“Shorehill”) and Rick McClure, an electrical power grid industry veteran.
Royal manufactures substation and transmission group-operated disconnect switches, substation and distribution hookstick disconnects, and substation power connectors. Royal’s products are used to control, protect and isolate electric current in an electrical system. Royal adds to Power Grid’s existing suite of products that ensures the safety, reliability and efficiency in the broader electric grid.
“We are thrilled to have the Royal team join the Power Grid family. The Royal acquisition broadens the Power Grid product offering to include high voltage switchgear and power connectors. As importantly, we are excited to welcome a Royal team that is well-known for extensive product knowledge, highly responsive customer service and dependable delivery,” said Rick McClure, President and CEO of Power Grid.
Joe Carton, President of Royal, said, “The entire Royal team is excited to partner with the Power Grid management team and we look forward to providing our customers with a broader product line and the same first-class service they are accustomed to.” Upon completion of the acquisition, Mr. Carton became President of Royal and joined the Board of Directors of Power Grid.
“Shorehill Capital is excited to support Power Grid’s acquisition of Royal. We continue to seek out high-quality companies that supply products used by electric utilities, electric cooperatives, municipalities, equipment manufacturers and other industry participants to maintain, repair and expand the North American electric power grid,” said Dave Hawkins, Shorehill Capital’s Managing Partner.
Antares Capital LP, Maranon Capital LP and Fidus Investment Corporation provided financing to support the acquisition. Katten Muchin Rosenman LLP served as legal advisor to Power Grid. Terms of the transaction were not disclosed.
About Shorehill Capital LLC
Shorehill is a Chicago-based private equity firm focused on making control equity investments in North American engineered industrial product, industrial service and value-added distribution companies with enterprise values up to $150 million. Shorehill seeks opportunities where its experience, network and investment management approach can have a significant impact on investment performance. The Shorehill partners have a 30-year track record of helping middle market companies achieve increased growth and improved operational performance through a structured investment management plan. For additional information, please visit www.ShorehillCapital.com.
About Power Grid Components, Inc.
Power Grid was formed by Shorehill Capital LLC and electric grid products industry veteran Rick McClure to acquire companies that manufacture and supply products used in the North American electric power grid. In addition to Royal, Power Grid includes Newell Porcelain (“Newell”) a supplier of high-quality porcelain and glass insulators and Instrument Transformer Equipment Corporation (“ITEC”) a manufacturer of instrument transformers for revenue metering and protective relaying. The Power Grid companies serve electric utilities, original equipment manufacturers and other customers supporting the electric grid. For additional information, please visit www.NewellPorcelain.com, www.ITEC-CTVT.com, www.RoyalSwitchgear.com, and www.PowerGridComponents.com.
Power Grid seeks to acquire companies that supply high-quality products used to maintain, repair and expand the North American electric power grid. Please contact Dave Hawkins or Robert Jackson regarding acquisition opportunities.