Mill Point Capital Announces Carve-Out of Pioneer Transformers
Pioneer Transformers Enters Next Chapter of Growth as a Standalone Entity
Franklin, WI – July 1, 2019
An affiliate of Mill Point Capital, a private equity firm focused on middle-market investments in North American industrial and business services companies, and Pioneer Power Solutions, Inc. (“PPSI”) announced today that they have entered into a definitive purchase agreement for Mill Point to acquire the power transformer divisions (“Pioneer Transformers” or the “Company”) of PPSI in a corporate carve-out transaction. Pioneer Transformers is a leading designer and manufacturer of custom-engineered electrical transformers.
Over its more than 100-year history, Pioneer Transformers has developed an expertise in the engineering, design and assembly of specialty electrical transformers for utility, industrial, commercial, renewable energy and data center market applications. The Company provides both liquid-filled and dry-type transformer products to a diverse and expansive roster of blue-chip customers through its US, Canada and Mexico operations.
Mill Point employs an Executive Partner model and has extensive experience with carve-out transactions in the industrials sector. Antony Besso, an Executive Partner of Mill Point who will be serving as Chairman of the Company, commented, “Pioneer Transformers is led by an excellent team that has earned a reputation for quality products, superior engineering capabilities and excellent levels of customer service. With strong brand equity, a history of operational excellence and the ability to now focus exclusively on its core transformer operations, the Company is well-positioned to seize compelling growth opportunities.”
Dustin Smith, Partner at Mill Point, commented, “The North American power grid requires significant investment in both new capacity and replacement units to keep pace with ever increasing electrical demand. Given Pioneer’s strong market position and reputation for providing reliable custom-engineered power transformer solutions, we are confident that the Company will capitalize on these favorable industry tailwinds as a standalone entity. We are excited to partner with the management team and welcome Pioneer Transformers to the Mill Point family.”
About Pioneer Transformers
Pioneer Transformers is a leading engineer and manufacturer of a broad range of specialty liquid-filled and dry-type power transformers for niche applications in industrial, OEM and commercial and backup power markets. The Company has an operational history of over one-hundred years and services a diverse group of utility, commercial power, industrial manufacturing and engineering and procurement and construction customers. With a family of brands recognized across North America for innovation, customization, quality and reliability, Pioneer Transformers is the go-to provider for customers in need of specialty-configured power transformer products. For more information, please visit www.pioneertransformers.com and www.jeffersonelectric.com.
About Mill Point Capital
Mill Point Capital is a middle-market private equity firm focused on control-oriented investments in the business services and industrial sectors. The firm works with Executive Partners to leverage its investment professionals experience, while providing strategic and operational guidance designed to drive long-term value creation in its portfolio companies. Mill Point is based in New York, NY. For more information, please visit www.millpoint.com.