Audax buys S.J. Electro Systems

Audax Private Equity has acquired S.J. Electro Systems, a maker of control solutions for the water and wastewater industry.

Audax Private Equity has acquired S.J. Electro Systems, a maker of control solutions for the water and wastewater industry. No financial terms were disclosed. Chartwell Financial acted as financial advisor to SJE on the deal while Raymond James acted as financial advisor to Audax.

PRESS RELEASE

BOSTON & DETROIT LAKES, Minn.–(BUSINESS WIRE)–Audax Private Equity (“Audax”) and S.J. Electro Systems, Inc. (“SJE” or the “Company”), a leading manufacturer of control solutions for the water and wastewater industry, today announced the formation of a strategic partnership under which Audax acquired a majority stake in SJE. Terms of the transaction were not disclosed.

SJE’s control solutions platform includes three trusted brands: CSI Controls, PRIMEX, and SJE Rhombus. The Company’s integrated engineering and manufacturing capabilities provide innovative solutions that allow municipalities, industrial customers, and homeowners to meet their liquid level control needs. With a global network of seven locations and a worldwide customer base, SJE has consistently executed in the highly fragmented water controls market and has grown both organically and through six acquisitions since 2005.

Dave Thomas, President and Chief Executive Officer of SJE, said, “As demand for our products continues to grow, we believe that now is the right time to bring on a partner that can provide strategic capital as well as operational and financial expertise. Partnering with Audax, a firm with a well-respected and successful track record of helping middle-market companies drive value, represents a significant opportunity for the future of our company and its stakeholders, most notably our customers and employees. It is an honor to welcome Audax to the SJE family.”

“SJE is a leader in the water and wastewater space, consistently integrating differentiated engineering and manufacturing capabilities to produce reliable solutions for their global customer base,” said Jay Mitchell, Managing Director, Audax Private Equity. “We believe that positive industry tailwinds coupled with the current fragmentation of the wastewater control solutions manufacturing market strategically positions SJE to continue to scale through both organic and inorganic growth opportunities. We look forward to working closely with Dave and the entire team as SJE enters its next phase of growth.”

Chartwell Financial acted as financial advisor to SJE. Raymond James acted as financial advisor to Audax. Ropes & Gray, Greenberg Traurig, and Fredrikson & Byron served as counsel to Audax.

About SJE
SJE was founded in 1975. Today, over 45 years later, SJE has grown into a leading controls technology company throughout the United States and Canada, as well as into global markets. SJE is comprised of well-respected brands — CSI Controls, PRIMEX, SJE Rhombus — all known for their innovation and quality. With locations throughout the United States and Asia, SJE offers a wide variety of control products for residential, commercial, municipal and industrial markets. From control panels utilizing embedded circuit board technology, to complete control and monitoring systems designed and built to individual specifications, SJE represents the most reliable integration of engineering and manufacturing capabilities in the industry.

About Audax Private Equity
Audax Group is a leading alternative investment manager with offices in Boston, New York, and San Francisco. Since its founding in 1999, the firm has raised over $27 billion in capital across its Private Equity and Private Debt businesses. Audax Private Equity has invested over $7 billion in more than 140 platforms and over 975 add-on companies, and is currently investing out of its $3.5 billion, sixth private equity fund. Through its disciplined Buy & Build approach, Audax Private Equity seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. With more than 250 employees, Audax is a leading capital partner for North American middle market companies. For more information, visit the Audax Private Equity website: http://www.audaxprivateequity.com or follow us on LinkedIn.