FOR IMMEDIATE RELEASE – January 8, 2019
Shorehill Capital LLC (“Shorehill”) announced today that it acquired a majority ownership interest in Functional Devices LLC (“Functional Devices” or the “Company”) in partnership with the Company’s management team and Ken Rittmann, the Company’s prior owner. Headquartered in Sharpsville, Indiana, Functional Devices is a leading US-based manufacturer of relays, power supplies, transformers, sensors, enclosures and wireless devices utilized in the HVAC, building and lighting controls and energy management industries. The Company’s RIB® brand is one of the most recognized brands within the building controls industry.
The Shorehill investment team has extensive experience in building automation controls, having previously invested in Kele, Inc. and CII Technologies. “We have a long history in the building automation controls industry and believe it will continue to benefit from several positive long-term demand drivers. We are excited to partner with the Company’s management team and Ken Rittmann to build upon the Company’s 50-year history of providing its customers with high-quality products and customer service,” said Dave Hawkins, Managing Partner at Shorehill Capital.
Functional Devices was founded in 1969 by Ken Rittman’s father, Al Rittmann. Ken was promoted to President in 1993 and led the company for over 20 years. Ken promoted Mark Fernandes to President in 2014, and Mr. Fernandes continues to the lead the Company today. In conjunction with Shorehill’s recapitalization, Mr. Fernandes became an investor in the Company and joined the Company’s Board of Directors while Mr. Rittmann has retained a significant ownership position and will also join the Company’s Board of Directors. “I am excited to have found a partner with strong industry experience and a like-minded business approach, and I believe that together we can accelerate growth at Functional Devices,” said Ken Rittmann. For additional information, please visit www.FunctionalDevices.com.
Keith Mayer, a Shorehill Executive Advisor and CFO of Power Grid Components, Inc., has also joined the Company’s Board of Directors. Keith brings a wealth of knowledge regarding business strategy, financial operations and the building automation controls industry, having previously served as CFO of Kele, Inc., the industry’s largest distributor.
Madison Capital Funding LLC and Maranon Capital, L.P. provided financing support. Katten Muchin Rosenman LLP served as legal advisor to Shorehill and Ice Miller LLP served as legal advisor to the seller. 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.