OpenGate Capital Realizes Investment in Power Partners

Specialized Manufacturer of Pole and Pad-Mounted Distribution Power Transformers Revitalized Under OpenGate’s Ownership and Operational Oversight

LOS ANGELES, CA  – November 25, 2019 – OpenGate Capital, a global private equity firm, announced today that it has completed the sale of Power Partners to Pioneer Transformers, a portfolio company of Mill Point Capital, a private equity firm based in New York. Power Partners was acquired in a proprietary transaction by OpenGate in January 2016 and marked the first investment in the firm’s first institutional fund. Headquartered in Athens, Georgia, Power Partners has a single production facility supported by approximately 370 employees. Terms of the transaction were not disclosed.  

Led by President, Justin Smith, Power Partners is a leading manufacturer of pole and pad-mounted distribution transformers, serving utility, industrial and commercial customers in North America, Central America, the Caribbean and other markets. More than nine million transformers have been produced at the company’s manufacturing facility throughout its 60-year history.

Andrew Nikou, OpenGate Capital’s Founder and CEO stated, “I am proud of our investment in Power Partners. Under Justin’s guidance, and with the collaboration between our teams, we have brought new life and new value to a great business, and now it moves on into the next chapter of growth. Power Partners is a testament to our firm’s integrated strategy – sourcing a proprietary investment opportunity, acquiring the business at the right value, executing on our operational turnaround strategy, and finally crystallizing the value we created through this exit. While working with Justin and his team, Power Partners implemented manufacturing improvements, stabilized production and delivery processes, developed a new, pad-mount product which has opened up a completely new market, and built a full independent sales team. From an investment perspective, Power Partners more than tripled EBITDA – growing from low, single-digits to more than $10 million in less than four years. A great team accomplishment.”

Commenting on the sale, Smith said, “Leading the transformation of Power Partners has been an incredibly rewarding experience and I am thankful for the support of OpenGate and am looking forward to our new partnership with Pioneer Transformers and Mill Point Capital. I am really proud of the Power Partners team and everything we have accomplished together. This marks an exciting new time for our business as we start the next chapter with Mill Point Capital and continue to grow.” 

The professionals at OpenGate responsible for negotiating the acquisition and the sale of Power Partners included Matthias Gundlach, Managing Director, and Aaron Figura, Senior Vice President. Leading the operations effort was Paul Bridwell, Managing Director.  

About OpenGate Capital

Founded in 2005, OpenGate Capital is a global private equity firm that strives to acquire and optimize lower middle market businesses throughout North America and Europe with a strategic focus on operational improvement, innovation and strategic growth. OpenGate is headquartered in Los Angeles and Paris and has a seasoned in-house team of professionals overseeing the entire lifecycle of each investment. To learn more about OpenGate, please visit www.opengatecapital.com