Morgenthaler Private Equity (MPE) has recapitalised Trachte, a manufacturer of preassembled and modularised control buildings.
The company's custom buildings house critical electrical components that control and protect electrical infrastructure, such as transmission & distribution substations. In addition, Trachte buildings are used extensively in industrial applications to house equipment, such as switchgear, motor controls, and pumps. Trachte serves utilities, OEMs, and other channel partners in the power generation, energy, chemical processing, data centre, and general industrial end markets.
MPE partnered in the transaction with the existing shareholders, including retiring President Randy Trachte and retiring VP of Sales Ron Trachte, as well as the continuing senior management team. Going forward, Trachte will be led by incoming CEO Matt Cahill, an experienced operating executive, and VP & COO Paul Holmes, a 25-year Trachte employee.
Joe Machado, Partner at MPE, says, "Trachte has developed a tremendous reputation for product quality, engineering and project management support, on-time delivery, and customer service. On behalf of MPE, we are excited to partner with Matt, Paul, and the rest of the very talented Trachte organization as we help the Company continue its impressive growth."
Randy and Ron Trachte says: "Our grandfather began manufacturing prefabricated metal buildings in 1919. Over our past 40 years of ownership with Trachte, we have had the privilege of working with our employees to build great relationships with customers and suppliers by delivering on our commitments. We were very selective in choosing an investment partner for Trachte and believe MPE will be a great steward for the Company and its legacy."
Alliance Partners LLC provided senior debt financing to support the transaction. Hartford Investment Management Company (HIMCO) and vehicles managed by Siguler Guff & Company, LP and its affiliates provided subordinated debt financing. Mintz Levin served as legal advisor to MPE. Cleary Gull Inc. served as investment banking advisor to Trachte.
