Morgenthaler Private Equity has recapitalized Wisconsin-based Trachte Inc, a maker of preassembled and modularized control buildings. No financial terms were disclosed for the transaction that was done in partnership with Trachte’s senior management that included retiring President Randy Trachte and retiring Vice President of Sales Ron Trachte. Cleary Gull Inc acted as investment banking advisor to Trachte on the recap.
CLEVELAND and BOSTON, Oct. 19, 2015 /PRNewswire/ — Morgenthaler Private Equity (“MPE”) announced today the recapitalization of Trachte, Inc. (“Trachte” or “the Company”), a leading manufacturer of preassembled and modularized control buildings. The Company’s custom buildings house critical electrical components that control and protect electrical infrastructure, such as transmission & distribution substations. In addition, Trachte buildings are used extensively in industrial applications to house equipment, such as switchgear, motor controls, and pumps. Trachte serves utilities, OEMs, and other channel partners in the power generation, energy, chemical processing, data center, and general industrial end markets.
MPE partnered in the transaction with the existing shareholders, including retiring President Randy Trachte and retiring VP of Sales Ron Trachte, as well as the continuing senior management team. Going forward, Trachte will be led by incoming CEO Matt Cahill, an experienced operating executive, and VP & COO Paul Holmes, a 25-year Trachte employee. Joe Machado, Partner at MPE, said, “Trachte has developed a tremendous reputation for product quality, engineering and project management support, on-time delivery, and customer service. On behalf of MPE, we are excited to partner with Matt, Paul, and the rest of the very talented Trachte organization as we help the Company continue its impressive growth.”
Randy and Ron Trachte said, “Our grandfather began manufacturing prefabricated metal buildings in 1919. Over our past 40 years of ownership with Trachte, we have had the privilege of working with our employees to build great relationships with customers and suppliers by delivering on our commitments. We were very selective in choosing an investment partner for Trachte and believe MPE will be a great steward for the Company and its legacy.”
Alliance Partners LLC provided senior debt financing to support the transaction. Hartford Investment Management Company (HIMCO) and vehicles managed by Siguler Guff & Company, LP and its affiliates provided subordinated debt financing. Mintz Levin served as legal advisor to MPE. Cleary Gull Inc. served as investment banking advisor to Trachte.
About Trachte, Inc.
Headquartered in Oregon, Wisconsin, Trachte, Inc. manufactures preassembled and modularized, design-flexible metal control buildings. The Company’s custom buildings house critical equipment such as relay and protection controls, switchgear, battery systems, servers, and data center hardware that control and protect electrical infrastructure and equipment. Customers rely on Trachte for its product quality, project management capabilities, and structural and electrical engineering expertise.
About Morgenthaler Private Equity
Morgenthaler Private Equity (“MPE”) is the private equity group of Morgenthaler. Based in Cleveland, Ohio, and Boston, Massachusetts, MPE focuses on the lower middle market with transaction values up to $150 million. MPE has two primary target investment areas: high-value manufacturing and proprietary business services. Morgenthaler is a leading, national private equity and venture capital firm, with approximately $3 billion under management and investments in more than 300 companies over its 46-year history. For more information, please visit www.morgenthaler.com/private-equity.