ATHENS, Ga.--(BUSINESS WIRE)--Mill Point Capital LLC (“Mill Point Capital”), a private equity firm focused on control-oriented investments in the industrials, business services and IT services sectors, announced today a sale of Spire Power Solutions L.P. (“Spire”), one of North America’s leading manufacturers of power transformers, to Electric Research and Manufacturing Cooperative, Inc. (“ERMCO”), a leader in the manufacturing of liquid-filled distribution transformers for the utility, commercial and industrial markets. ERMCO is a wholly owned subsidiary of Arkansas Electric Cooperatives, Inc. (“AECI”).
Headquartered in Athens, GA, Spire has been serving the electrical utility, commercial and industrial sectors for over 100 years. Spire manufactures a full range of liquid-filled and dry-type transformers through the Power Partners, Pioneer Transformers, Jefferson Electric and V&F Transformer brands.
Tim Mills, President and CEO of ERMCO, commented, “We are excited to welcome the Spire team into the ERMCO family. With similar employee-focused work cultures, Team ERMCO is eager to expand our capacity across our primary product lines and extend our offerings into the critical renewable energy and data center markets. This is a pivotal time for the utility industry, and we are hyper-focused on growing our production capabilities physically and through continued investment in our talented workforce.”
Buddy Hasten, President and CEO of AECI, added, “This is a unique opportunity to further AECI’s on-going commitment to be a reliable, affordable and responsible business partner throughout the ever-growing utility industry. AECI’s shareholders understand the challenges faced by cooperative, municipal and investor-owned utilities with regards to transformer supply issues. This exciting acquisition is intended to assist the utility industry to continue powering our great nation.”
“ERMCO is an industry leader and a natural partner to continue the growth trajectory of Spire,” stated Justin Smith, CEO of Spire, “The combination of ERMCO and Spire brings together two outstanding teams that will enable better outcomes for our customers.”
“We are very proud of what we accomplished together with the Spire team over the last few years,” said Dustin Smith, Partner of Mill Point Capital. “Since the initial transaction in 2019, Spire has evolved into a leading player in the transformer industry and is poised to benefit from continued investment in the North American power grid. We know the team is in great hands with ERMCO.”
Antony Besso, Executive Chairman of Spire and Partner Operations at Mill Point Capital, added, “We are proud to have supported Spire's world class management team through a period of rapid growth, exemplifying Mill Point's operating model, and believe that the sale to ERMCO will be of great benefit to the transformer industry.”
Lincoln International acted as the exclusive financial advisor to Mill Point Capital and Spire Power Solutions.
About Spire Power Solutions L.P.
Spire Power Solutions L.P. is a leading North American manufacturer of transmission and distribution solutions including liquid-filled and dry-type transformers that serve the utility, public power, renewable energy, construction, industrial and OEM markets known across the industry for safe, high quality, reliable products and exceptional engineering capability. For more information, please visit, www.spirepowersolutions.com.
About Mill Point Capital LLC
Mill Point Capital LLC is an operationally-oriented private equity firm targeting control investments in lower-middle market companies, with a focus on industrials, business services and IT services sectors in North America. Mill Point’s experienced team of investors and Executive Partners seek portfolio company value enhancement through rigorous implementation of transformative strategic initiatives and operational improvements. Mill Point is based in New York, NY. For more information, please visit www.millpoint.com.
About ERMCO, Inc.
ERMCO, Inc. is celebrating 50 years of being a leader in the manufacture of liquid-filled distribution transformers for the utility, commercial and industrial markets. Headquartered in Dyersburg, Tennessee, ERMCO and its affiliates, ECI-Greeneville, ECI-Antioch and GridBridge in Raleigh, North Carolina employ more than 1,800 team members. Offering a full range of pole and pad mounted transformers, related components and power solutions for global utilities, ERMCO is proud to be the industry’s most valued partner. ERMCO is a wholly-owned subsidiary of AECI. For more information, please visit www.ermco-eci.com.
About AECI
The Electric Cooperatives of Arkansas comprise 17 electric distribution cooperatives along with Arkansas Electric Cooperatives, Inc. (AECI), a Little Rock-based cooperative that provides services to the distribution cooperatives, and Arkansas Electric Cooperative Corp. (AECC), a generation and transmission cooperative. The distribution cooperatives provide electricity to approximately 600,000 homes, farms and businesses in Arkansas and surrounding states.