Pelco Products, Inc., the leading traffic and utility hardware manufacturer and supplier in the industry, announced that it has partnered with River Associates Investments, LP (“River Associates” or “River”), a longstanding lower-middle-market private equity firm based in Chattanooga, TN.
River Associates has served as a financial sponsor partner for management teams for over 30 years. Since 1989, the firm has initiated more than 100 transactions, many of which have been strategic add-on acquisitions to platform companies. River focuses on “Investments with Management”, a philosophy of true partnership in all aspects of business.
“As a founder-owned business, we were looking for the right partner for our next chapter,” said Steve Parduhn, CEO of Pelco. “River’s 30-year tenure in the industry, experience with other niche product manufacturing companies, and successful track record with other founder-owned businesses checked all the boxes. The team at River really dug in and did their homework on Pelco and our industry. We are confident in their ability to guide us through Pelco’s exciting next phase and look forward to working with the firm.”
Based in Edmond, OK, Pelco is a traffic and utility hardware manufacturer and supplier. The Company is the market leader in the traffic signal hardware industry, offering more than 5,000 active SKUs. Pelco’s products are often spec’d into project designs by local and regional agencies, providing strong pull-through demand.
“River is excited to have Pelco join our portfolio of platform companies,” said Mike Brookshire, Co-Managing Partner at River Associates. “Founded in 1985, they have built a reputation for their innovation, quality, and service in the traffic signaling and utility hardware categories. Their tenured and diligent team is dedicated to the company, and it is a privilege to partner with them.”
River funded the transaction with equity from its seventh investment fund (River VII, L.P.). Financing was provided by Madison Capital Funding LLC (“Madison”) and Northstar Mezzanine Partners SBIC, L.P. (“Northstar”). River Associates was advised by Waller Lansden Dortch & Davis, LLP. Pelco was advised by Phillips Murrah P.C., Matthew Myers, and Fidus Partners.
Pelco will seek to acquire businesses that manufacture or supply similar complementary products to the end markets referenced above. Please contact Paul Koenig at Pelco Products or Mark Jones at River Associates for additional information.