A group of investors led by F.N.B. Capital Partners has acquired Powertrack International. Financial terms weren’t announced. Pittsburgh-based Powertrack is a wholesale distributor of industrial and hydraulic hose and fittings products. First National Bank of Pennsylvania provided the senior financing.
PITTSBURGH, PA–(Marketwired – December 05, 2014) – F.N.B. Capital Partners, L.P. (“FNBCP”) led the acquisition of Powertrack International (“Powertrack” or the “Company”) with a group of local investors and the Company’s management team. Based in Pittsburgh, PA, Powertrack is a high performance wholesale distributor of industrial and hydraulic hose and fittings products with three operating locations: Pittsburgh, Pennsylvania; Houston, Texas; and Long Beach, California. FNBCP purchased the Company from the President and founder, Edward Condon, as part of an overall business succession and growth strategy for the company. FNBCP worked closely with Jason Lewis of Regent Square Capital, LLC (“RSC”) and with other investors to close the deal.
FNBCP is a $175 million fund of committed capital licensed as a Small Business Investment Company (“SBIC”) and managed by Tecum Capital Management, Inc. RSC pursues targets where principals can play a more active role in supporting portfolio companies, which is one of several reasons Powertrack presented a great opportunity for FNBCP and RSC to work together.
“We are extremely excited to partner with the team at Powertrack International and RSC, and it is equally exciting to be able to make another investment in our home market,” noted Stephen Gurgovits, Jr., Managing Partner of F.N.B. Capital Partners, L.P. FNBCP partner, Tyson Smith led the transaction and added, “Industry trends appear very favorable for the company. We think there is strong growth potential with the continuing increase in Marcellus Shale activity. We are also excited to partner with RSC principal Jason Lewis on this investment. Jason possesses a unique blend of combat-tested leadership skills, Wall Street deal making background, and big company strategy that, together with Powertrack’s management team, should help drive growth.”
Long-time employee, Andrew Kuron, will serve as President of the company and Mr. Condon will continue to work with the company in a consulting capacity. “We are very pleased to have FNBCP partner with Powertrack International”, said Edward Condon. “Their investment and strategic support will further strengthen our ability to help Powertrack capitalize on the numerous growth opportunities ahead.”
First National Bank of Pennsylvania provided the senior financing, while Cohen & Grigsby, P.C. served as legal advisor.
For more information on F.N.B. Capital Partners, visit: www.fnbcp.com
For more information on Regent Square Capital, visit: www.regentsquarecapital.com
For more information on Powertrack International, visit: www.marcellushose.com or www.powertrackhose.com
About F.N.B. Capital Partners, L.P.
F.N.B. Capital Partners, L.P. is a pooled fund of committed capital licensed by the Small Business Administration (“SBA”) as an SBIC. FNBCP, headquartered in Pittsburgh, Pennsylvania, invests $3 million to $15 million per transaction. FNBCP specializes in providing mezzanine debt, subordinated notes, private equity and other types of financial capital to small and medium size commercial enterprises for the purposes of recapitalizations, buyouts, generational transitions, mergers and acquisitions and other growth capital.
About Tecum Capital Management, Inc.
Tecum Capital Management, Inc. (“Tecum”) is a private investment firm and management company for F.N.B. Capital Partners, L.P. Tecum, based in Pittsburgh, Pennsylvania, oversees a pool of committed capital focused on mezzanine debt, subordinated notes, private equity and other types of financial capital to small and medium sized commercial enterprises. The company is focused on providing financing for recapitalizations, buyouts, generational transitions, mergers and acquisitions and other growth capital needs.