Behrman Capital sold BECO Holding Company to HIG Capital. Via its network of 16 distribution centers nationwide, BHC offers a wide range of value-added distribution and critical fire and life safety management services enabled by proprietary technology tools. Baird advised BHC, Piper Sandler advised HIG, and Golub Capital provided financing for the transation.
New York, November 3, 2021 – Behrman Capital, a private equity investment firm based in New York, today announced the sale of its portfolio company BECO Holding Company, Inc. (“BHC” or the “Company”) to an affiliate of H.I.G. Capital. Financial terms of the transaction were not disclosed.
Founded in 1941 and headquartered in Charlotte, NC, BHC offers a wide range of value-added distribution and critical fire and life safety management services enabled by proprietary technology tools. The Company operates via an extensive network of 16 distribution centers nationwide, through which it offers more than 200,000 products across every major fire and life safety brand. BHC has an industry-leading reputation as an essential partner to customers – helping them achieve proper fire life safety compliance through critical support and products – and OEMs.
Grant G. Behrman, Managing Partner of Behrman Capital, said: “We are proud to have played an important role in BHC’s impressive growth during two successful periods of investment which collectively spanned 19 years. During our long partnership with BHC, we have spearheaded numerous acquisitions to drive portfolio growth and market expansion and supported multiple strategic initiatives. Importantly, our technology investments have positioned the Company at the forefront of tech-enabled distribution. We wish Eric and the team the best with their new partners and are confident they are well positioned for continued success.”
Eric Smith, Chief Executive Officer of BHC, said: “All of us at BHC are grateful to have benefitted from Grant and the Behrman Capital team’s deep expertise and knowledge of our business in building the leading distributor in the fire life safety industry. We are energized by the opportunities ahead and remain focused on executing our growth strategy, including expanding our national accounts platform, enhancing our products and services, and broadening our OEM partnerships and solutions offering. Our thanks go to our talented teams for their continued hard work and relentless focus on delivering best-in-class service to our customers.”
The sale of BHC marks the completion of Behrman’s second ownership period of the Company, having previously held a majority stake from 1998 to 2010. Behrman subsequently re-acquired the Company in 2014.
For BHC, Baird served as exclusive financial advisor, and Goodwin Procter LLP served as legal counsel. For H.I.G., Piper Sandler & Co served as financial advisor, and Ropes and Gray served as legal counsel. Financing for the transaction was provided by Golub Capital.
About Behrman Capital
Based in New York City, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company’s investments are focused in three industries: defense and aerospace, healthcare services, and specialty manufacturing and distribution. The firm has raised $3.5 billion since inception and is currently investing out of its sixth fund. For more information, please visit www.behrmancap.com.
About BECO Holding Company
Founded in 1941 as Brooks Corporation, BECO Holding Company (BHC) is the leading provider of critical fire life safety solutions. Over its 80-year history, BHC has grown to become one of the leading business-to-business suppliers in the fire life safety industry, combining quality products and great service.
BHC operates an integrated and cohesive platform through the following leading brands, including Brooks Equipment (www.brooksequipment.com), Logistics Supply (www.logisticssupply.com), Heiser Logistics (www.heiserusa.com), L&J Fire Equipment (www.landjfire.com), Commercial Fire (www.commercialfire.com), and Water Specialties (www.backflowpreventer.com).