Lincolnshire Management (Lincolnshire), a private equity firm focused on investing in and acquiring growing middle market companies, has completed a dividend recapitalisation of Fund V portfolio company, Schumacher Electric Corporation (Schumacher Electric), a supplier of power conversion products to the consumer and professional global power supply markets.
Operating from a new headquarters in Fort Worth, TX, Schumacher Electric is a leader in the USD23 billion global power supply market, with a particular focus on battery life enhancement, chargers, testers, cables and other power accessories. The company’s products are available through a broad global sales channel from more than 30,000 distribution points, including major big box retailers, specialty aftermarket outlets and online e-commerce platforms. Founder Don Schumacher, who established the most successful team in National Hot Rod Association (NHRA) history and is a member of the International Motorsports Hall of Fame, invested alongside Lincolnshire in the transaction in 2020.
“We are thrilled with Schumacher Electric’s outstanding operating results since we acquired the business last year,” says Tom Callahan, a Managing Director at Lincolnshire Management. “The Company’s continued investment in new technology and ability to build on its market leadership position is a direct result of the hard work and dedication of the Schumacher Electric management team. Strong operational and financial performance has generated an opportunity for Lincolnshire to quickly realise a very meaningful return for our investors while assuring a durable capital structure for the business, and we could not be more enthusiastic about the Company’s go-forward prospects.”
Schumacher Electric addresses a wide spectrum of end-user applications, including recreational vehicles, consumer electronics, power tools and appliances, as well as farming equipment, heavy duty lawn machinery and other vehicles. The Company, whose products are manufactured and distributed at facilities strategically located across the US, Mexico, Europe, Australia, and China, has also recently launched initiatives in the fast-growing electric vehicle (EV) market, with additional product introductions planned for 2021.
“When we invested in Schumacher Electric we were confident it would be a platform for growth given its market-leading quality and service levels,” says David MacDonald, a Principal at Lincolnshire Management. “Since acquiring the business, Lincolnshire has bolstered the already strong management team with key hires to promote growth initiatives, including e-commerce and European expansion.”
