BOSTON and SAN FRANCISCO — Audax Private Equity (“Audax”), a growth-oriented capital partner to middle market companies, announced today it has sold portfolio company EIS (or “the Company”), a value-added distributor of process materials and production supplies used in electrical and electronic applications. Terms of the deal are not disclosed.
Audax Private Equity acquired EIS in 2019 through a carveout of Genuine Parts Company’s Electrical Specialties division. Audax’ thesis was to separate the acquired division into three distinct operating businesses, one of which was EIS.
“I think EIS represents a tremendous growth story and a testament to our Buy & Build strategy,” noted Audax Partner Don Bramley. “We recruited a talented management team, built the corporate infrastructure to support stand-alone operations and acquisitive growth, and worked closely with Glenn and other EIS executives to refine the company’s go-to-market strategy. Through these enhancements, we helped position EIS as a value-add partner with the technical expertise and product portfolio to serve its customers across the OEM and aftermarket value chain.”
During Audax’ hold, EIS grew earnings and accelerated growth through the execution of the firm’s Buy & Build strategy. During Audax’ hold, EIS completed six add-on acquisitions, which added capabilities and expanded the Company’s presence in the aftermarket segment.
“Audax was a collaborative partner who brought deep resources to help us enhance our value proposition to OEMs and expand through acquisition into key aftermarket segments,” noted Glenn Pennycook, CEO of EIS. “Today, EIS is distinguished by our value-added capabilities, product breadth, and expansive service offerings. We believe the foundation is in place to capitalize on ongoing trends of electrification and energy grid evolution.”
“We want to thank Glenn and his leadership team, whose commitment and partnership were critical to EIS’s growth and transformation over the past five years,” added Audax Managing Director Tim Porter. “From the outset, this opportunity was enabled by the depth of portfolio support we could dedicate to the carveout transaction. But the efforts of EIS leadership to formulate and execute on a compelling strategic vision ultimately delivered what we consider to be a great outcome for the company, Audax, and our investors.”
William Blair and J.P. Morgan acted as advisors to Audax and EIS, while Kirkland & Ellis LLP served as legal counsel to Audax.
About EIS
Founded in 1946 and headquartered in Atlanta, Georgia, EIS provides process materials to MRO and OEM customers across an array of end markets including Power Generation, Transmission and Distribution, Alternative Energy, E Mobility and Industrial Electronics. With 29 distribution and fabrication locations across North America, EIS services more than 10,000 customers engaged in the manufacture and aftermarket servicing of motors, transformers, utility-scale power generators, wind turbines, and solar panels. For more information, visit www.eis-inc.com or visit the company on LinkedIn.
About Audax Private Equity
Headquartered in Boston, with offices in San Francisco, New York, and London, Audax Private Equity manages three strategies: its Flagship and Origins private equity strategies, seeking control buyouts in the core middle and lower middle markets, respectively, and its Strategic Capital strategy that provides customized equity solutions to PE-backed portfolio companies to help drive continued growth. With approximately $19 billion of assets under management as of June 2024, over 270 employees, and 100-plus investment professionals, Audax has invested in more than 170 platforms and 1,300 add-on acquisitions since its founding in 1999. Through our disciplined Buy & Build approach, across six core industry verticals, Audax seeks to help portfolio companies execute organic and inorganic growth initiatives with the aim of fueling revenue expansion, optimizing operations, and significantly increasing equity value. For more information, visit www.audaxprivateequity.com or follow us on LinkedIn.
