Intermatic Sold

The Intermatic deal is done.

It has been rumored for months that Intermatic was being sold. Strategic buyers and private equity firms were mentioned as expressing interest and reviewing “the book” throughout the fall (and some mentioned even last summer.)

According to sources, it was a “challenge” for many in considering the opportunity due to

• Revenue swings relating to involvement in the retail space
• The focus on the residential market due to the HVAC, pool / spa, and landscape / irrigation involvement.
• Strategic focus / alignment caused by the channel diversification.

It’s not to say that diversification of channels is not good it is just that, for an acquirer, does it fit their goals.

Consider, if you are an electrical manufacturer with no involvement in the other industries, what do you do? Eliminate those channels? Sell them off (but then, to who and do they want a small business)? Do you seek to invest in those channels with other products? Are the individual channels profitable as standalone businesses?

If you are a private equity acquirer, what is your longer-term strategy? What is your exit plan (as many think “who / how can I sell this” before they buy it.)

Intermatic found an acquirer, MPE Partners, who, as expected, is a private equity firm.

While MPE is diversified, it does have some experience in the electrical industry as it previously owned Trachte, which was sold to nVent last July.

The press release stated, “Intermatic LLC, an energy management solutions company designing and manufacturing electrical and mechanical controls for general lighting, outdoor lighting, irrigation, water heating, HVAC/R, and pool & spa applications, announced the completion of its acquisition by MPE Partners (MPE or Morgenthaler Private Equity), a leading private equity firm focused on lower middle market investments in family-owned high-value manufacturing businesses.

MPE acquired Intermatic from the founding Kinney family. Intermatic will continue to operate under the leadership of President and CEO Rick Boutilier, with the new investment positioning the manufacturer for growth in several areas, including new product development with a focus on digital, advanced, and integrated controls, as well as continued penetration into the electrical distribution channel with innovative, energy-efficient solutions.

Founded in 1891 as the Pratt & Englund Company, Intermatic has evolved into a leading global manufacturer, serving customers in more than thirty-five countries. Its extensive portfolio of category-leading solutions, including timer controls, outdoor weatherproof covers, and surge protective devices, serves a wide breadth of applications across the residential, commercial, industrial, utility, and OEM markets.

“This is an exciting new chapter for Intermatic,” says Rick Boutilier, President and CEO at Intermatic. “For more than 130 years, customers have trusted us to deliver innovative and reliable lighting control and energy management solutions. The investment from MPE will propel us forward and allow us to continue that mission for years to come.”

Intermatic will continue to serve customers from its headquarters in Libertyville, Illinois. Distributors, partners, agents, and end-users can expect the same high level of service and manufacturing quality under this new ownership structure.

“It is rare to find a company like Intermatic that has such a rich history and brand name but is also dedicated to growth, product innovation, and manufacturing excellence. We are thrilled to start this journey together and look forward to supporting the organization as it builds for the future,” says Constantine Elefter, Partner at MPE.”

And there is good news in this announcement as:

• While there inevitably will be some business / strategy changes due to a change in ownership and goals, there is much that will “remain the same”, especially within the rep network.
• According to the press release on the MPE website, as expressed in the press release title, MPE views Intermatic as an opportunity to create a “platform. Further, Constantine Elefter, an MPE partner, said “We’re equally excited about pursuing complementary add-on acquisitions that provide new products within the broader electrical category …”

Exciting times for Intermatic given the potential growth opportunities that can now be in front of the organization as it charts its course under new ownership.