Wind Point Partners Acquires Central Moloney
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Wind Point invests in manufacturer of critical infrastructure products for the U.S. electrical grid
CHICAGO, Ill., October 27, 2023-- Wind Point Partners (“Wind Point”), a Chicago-based private equity firm, announced today that it has partnered with Central Moloney (“CMI” or the “Company”), a leading manufacturer of critical infrastructure products for the U.S. electrical grid. CMI is a valuable partner to leading utilities throughout the U.S., offering a full suite of customizable distribution transformers and transformer components. The Company operates three transformer and component manufacturing facilities with a combined 577,000 sq. ft. across Arkansas and Panama City Beach, Fla. Originally called Larkin Lectro Products Company, the Company was founded in 1949 in Pine Bluff, Ark., the location of CMI’s headquarters to this day. Through a series of acquisitions and divestitures, CMI was established in 1994 and converted to an Employee Stock Ownership Plan (“ESOP”) structure in 1998.
Wind Point is partnering with CMI management, led by CEO Chris Hart. Under Mr. Hart’s leadership, CMI has experienced substantial growth by strategically implementing organic expansion initiatives and prioritizing exceptional customer service during a period of heightened demand for electrification. Additionally, the electrical grid is in need of modernization and increased weather resiliency, which results in a long-term demand for distribution transformers. In April, the Company opened a facility in Panama City Beach, which enabled expanded production capacity.
“We are thrilled to be partnering with Wind Point. They offer CMI access to a robust executive network, additional capital resources and professional expertise, all of which will enhance our ability to grow and support customers,” commented Mr. Hart. “The need for distribution transformers and transformer components is as strong as it’s ever been, which calls for steadfast attention to quality and the customer experience. The partnership with Wind Point will allow us to continue expanding production, modernize and upgrade equipment and systems and explore strategic acquisitions. The entire CMI family is very excited as we embark on this next chapter of our journey.”
Nathan Brown, Managing Director with Wind Point, commented, “We are excited to be partnering with Chris and the talented team at CMI. Wind Point is very experienced in partnering with employee-owned organizations where there are opportunities to accelerate growth through investment. We plan to work closely with CMI’s leadership to further invest in the team and their capabilities, including additional equipment and new manufacturing capacity. CMI has a strong reputation with its customers for delivering quality products that are critical infrastructure components. We believe our involvement and investment will enable the Company to deliver an increasingly strong value proposition for stakeholders into the future.”
Isaiah Sullivan, Vice President with Wind Point, noted, “CMI is a leading platform with a significant opportunity in the distribution transformer market. Chris and the CMI management team have built a respected brand and a rapidly growing business, placing them at an exciting inflection point within the electrical equipment industry.”
Wind Point evaluated CMI in partnership with a team of seasoned executive advisors. Randall Boyd, a member of Wind Point’s Executive Advisor Partner (“EAP”) program, will serve as Board Co-Chair. Mr. Boyd brings over 30 years of experience in creating value in C-Suite and Board-level roles across LSG Sky Chefs and Guckenheimer Services, as well as Wind Point portfolio company FreshEdge. Dorian Alexandrescu will serve as Board Co-Chair. Mr. Alexandrescu brings vast industry expertise, having previously served as President and CEO of Russelectric and Resa Power Solutions.
Wind Point is an active investor in critical infrastructure products and services, with select current and prior investments including Critica Infrastructure, D&H United, Kleinfelder Group, RailWorks, Smart Care and Valicor.
Winston & Strawn LLP served as legal counsel to Wind Point and KPMG LLP provided transaction advisory services in connection with the transaction.