Publicly traded Global Power Equipment Group Inc. is buying Wagner Custom Controls Holdings, providing an exit for High Street Capital. Terms of the deal were not released. Based in South Bend, Indiana, Koontz-Wagner is a manufacturer and integrator of engineered packaged control house solutions for the energy, oil & gas and electrical industries.
Global Power Equipment Group Inc. (GLPW) (“Global Power” or “Company”) announced today that it has entered into a definitive agreement to acquire Koontz-Wagner Custom Controls Holdings LLC (“Koontz-Wagner”), a leading manufacturer and integrator of engineered packaged control house solutions for the energy, oil & gas, and electrical industries. The $31.5 million acquisition will be funded entirely from the Company’s cash on hand.
The addition of Koontz-Wagner’s engineered packaged control house solutions will expand Global Power’s products portfolio to its current customers, and supports the global expansion into adjacent infrastructure products and services. The deal is subject to customary closing conditions, and is expected to close by September 30, 2012.
“Koontz-Wagner is a terrific fit for the Global Power business,” said Luis Manuel Ramirez, President and Chief Executive Officer of Global Power. “Koontz-Wagner complements our current customer offering, as well as expands our reach in the rapidly expanding energy segments. It also represents a significant step forward in realizing our strategic goal to establish Global Power as a leader in the design and manufacture of natural gas turbine auxiliary equipment. With this first important step, we are well-positioned to continue to invest in growth through acquisitions and global expansion.”
Headquartered in South Bend, Indiana since 1921, Koontz-Wagner has delivered products and services to more than 1000 customer sites in over 35 countries. In 2011, Koontz-Wagner had $34 million in revenue.
Mr. Ramirez added, “We are acquiring a trusted brand, and a business team positioned well to deliver. Today’s announcement marks an opportunity for both our customers and employees.”
About Global Power
Texas-based Global Power Equipment Group Inc. is a design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Services Division, the Company provides on-site specialty support and outage management services for commercial nuclear reactors in the United States and maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Products Division, the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. Additional information about Global Power Equipment Group Inc. may be found at www.globalpower.com.