Shields & Company is pleased to announce it advised Electric Research and Manufacturing Cooperative, Inc. (“ERMCO”) in the sale of its Jefferson Electric dry-type assets ("Jefferson"), to Mill Point Capital LLC (“Mill Point”), a middle-market private equity firm focused on control investments in the Business Services, Industrials and IT Services sectors throughout North America. Jefferson is a trusted transformer manufacturer with a century-long reputation for producing reliable and efficient dry-type, low- and medium-voltage transformers for various applications and end markets including commercial, industrial, data centers, elevators, and others. With its acquisition of Jefferson and the simultaneous and independent acquisition of Pioneer Custom Electrical Products LLC from Pioneer Power Solutions, Inc (Nasdaq: PPSI), Mill Point announced the formation of Voltaris Power LLC (“Voltaris”), an electrical power solutions platform focused on providing custom engineered solutions and electrical products to a diverse global market.
“It was a pleasure working with Tim Mills, Adam Kruzich, and the broader ERMCO team to divest their Jefferson dry-type transformer business. This transaction represents an important inflection point not only for ERMCO but also for Shields & Co. as it expands our expertise within corporate carveouts as well within the industrial power sector,” said Chris Nicholas, Managing Partner of Shields & Co.
“The Shields team really made the difference as we sought strategic alternatives. Their guidance on navigating this Jefferson carve-out will allow ERMCO to focus on both our liquid-filled transformer business and the highly engineered dry-type transformers sold under the V&F Transformer brand. We are particularly thankful for Shields’ efforts to be constructive in getting the transaction completed while also being mindful to help us avoid any unnecessary risks or disruptions to our core business,” said Tim Mills, President and Chief Executive Officer of ERMCO.
Tom Klink, Vice Chairman of the Board of Voltaris, commented “Jefferson Electric has been a cornerstone in the transformer industry for over 100 years, and as a part of Voltaris, it will continue to thrive. The Shields team’s ability to help think through complex carve-out issues helped keep both sides on schedule and focused on the key issues.”
“We are delighted to have had the opportunity to work with ERMCO’s talented team on this transaction, which should enhance value by allowing ERMCO to focus on the multitude of opportunities within its core liquid-filled and V&F dry-type transformer business. Similarly, Jefferson remains well-positioned going forward having aligned itself with a supportive and experienced partner in Mill Point that brings complementary resources to help accelerate its own dry-type growth,” said Darwin Olympia, Managing Director with Shields & Co.
Nicole Lovell of Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. served as legal advisor to ERMCO. Andy Robinson and Caroline Soo of BDO USA, P.C., provided transactional accounting services to the seller.Shields & Company acted as financial advisor to ERMCO in the above transaction.