High Street Capital has acquired an undisclosed stake in Wagner Electric Company Inc., a South Bend, Ind.-based provider of electric motor repair services.
Wagner Electric Company, Inc., a South Bend-based company that employs nearly 500 people in Indiana, Ohio and Tennessee, has completed its transaction with Chicago-based High Street Capital, a private equity firm that specializes in helping family-operated businesses grow.
“While the specifics are confidential, I am pleased to announce the arrangement requires that all current employees be offered employment at current pay and benefits,” said Koontz-Wagner Owner, Richard J. Pfeil. “The plan also provides that all union contracts remain in place at all locations.”
Pfeil also stressed that the various divisions within Koontz-Wagner will keep their current names and locations while maintaining their current management structure. Pfeil, who has been with Koontz-Wagner in a full-time capacity for 52 years, added that he will continue his relationship with Koontz-Wagner as a member of the Board of Directors.
“For all intents and purposes, it will be business as usual at Koontz-Wagner,” said Pfeil. “We’re having a very successful year and I’m looking forward to seeing us continue our long record of achievement. This agreement provides the company with even more opportunity for growth and continued success.”
Michael F. Pound becomes Chief Executive Officer. Pound has been with Koontz-Wagner for 12 years and has led several of the business units in that time. Paul M. Witek continues his role as Chief Financial Officer. Witek has been with the company for 13 years.
“We are pleased to have been selected by Mr. Pfeil to carry on the Koontz-Wagner traditions of excellent work and outstanding customer service which have been cornerstones of Koontz-Wagner’s success. Our goal will be to support the excellent management team Mr. Pfeil has assembled over the years in continuing to service their customers and build on the strong foundation that has been built,” said Joseph Katcha, Founder and Principal of High Street Capital.
Since its humble beginnings in 1921, when brothers Harvey and Herbert Koontz saw the need for an electric motor repair service in the South Bend area, Koontz-Wagner (www.koontz-wagner.com) has grown into a multi-divisional corporation to customers on a regional, national and international basis – specializing in commercial electrical contracting, maintenance services and manufacturing. The corporate office and main plant are located in a 107,000-square-foot facility on Voorde Drive in South Bend.
Founded in 1997, High Street Capital (www.HighStreetCapital.com) is a Chicago-based private equity firm providing capital and operating expertise to middle-market businesses. In partnership with management, they invest in recapitalizations and growth equity financings. Through the active participation of its operating partners, a group of successful CEOs and ex-business owners, High Street Capital provides their portfolio companies with the experience, contacts and counsel to help them grow.