Prospect Partners Acquires Leading
Manufacturer of RV and Truck Components
31 , 2005: Prospect Partners, LLC along with Jeffery R. Porter,
announce the formation of Velvac Holdings, Inc. to acquire Velvac,
Inc. of New Berlin, Wisconsin. Velvac is a leading manufacturer
and supplier of exterior mirror systems and other component parts
to the truck, recreational and specialty vehicle industries. The
company's products are sold through OEM's and distributors to the
OEM recreational vehicle and truck market and aftermarket.
Mr. Porter, who invested
in the new company and will be Chief Executive Officer, has substantial
P&L experience building and growing businesses. He was formerly
a Group President at Crane Company (NYSE, CR), of Stamford, Connecticut,
a diversified manufacturer of engineered industrial products for
niche markets. He also has served in executive positions at Messer
Cutting & Welding, a German cutting, welding and industrial
gas company in Menomonee Falls, Wisconsin, and at Ingersoll Milling
Machine Company, an international machine tool company in Rockford,
Mr. Porter succeeds Gwen
Greeler, majority Velvac shareholder and former CEO, who is retiring
as part of the transaction. He will be joined by the members of
Velvac's current management team, who will remain actively involved
in the company's growth and development.
"We've known Jeff
and have seen his successes at other companies," says Richard
C. Tuttle, a principal at Prospect Partners. "He has the vision,
experience and skill set to run Velvac and back a seasoned management
team in a new effort in the RV and heavy duty truck mirror and components
"This is a great
time to join Velvac," Mr. Porter says. "The company has
a 70-year history as a market leader in exterior mirrors. I
look forward to continuing and expanding its legacy as an innovator."
He continues, "I
also am excited by the opportunity to work with Prospect Partners.
I am very impressed by the experience and diligence of its investment
team, which worked collaboratively with all parties to reach a successful
closing of the transaction."
Velvac's product line
includes more than 3,000 popular vehicle components. The Velvac
wide angle mirror system is recognized as the industry standard
by walk-in van manufacturers and delivery fleets, and its recreational
vehicle mirror division services over 90% of the recreational vehicle
Prospect Partners and
Velvac management will pursue add-on acquisitions of complementary
niche accessory businesses for the RV and heavy-duty truck markets.
Mr. Tuttle, Mr. Porter
and Prospect Partners' Principal Erik E. Maurer will serve on Velvac's
Board of Directors as Chairman and Directors, respectively.
Velvac Holdings, Inc.
is the sixth platform company of Prospect Partners II, L.P., the
$165 million private equity fund that closed in June, 2004. The
Fund's other platform companies include Tacoma, Washington-based
Codel Entry Systems, Inc., a leading Pacific Northwest fabricator,
assembler, marketer and distributor of pre-hung steel and fiberglass
entry door systems and related accessories for residential homes;
Walker, Michigan-based Pipp Mobile Storage Systems, a leading manufacturer,
designer and installer of mobile shelving and storage systems; Chicago-based
Kronos Products, Inc., a leading Greek foods manufacturer;
Brazoria, Texas-based Industrial Hoist Services, LP, a leading national
provider and lessor of hoists used in industrial applications; and
Superior Tool Holding Company, a leading manufacturer and distributor
of a complete range of professional and consumer pipe-working and
specialty plumbing tools sold nationwide.
About Prospect Partners
Prospect Partners, LLC
of Chicago, Illinois is a leading investor in unique lower-middle-market
companies, managing two private equity funds totaling $270 million.
Since its founding in 1998, Prospect Partners has focused on management-led
leveraged acquisitions of small niche leaders with revenues typically
between $10 and $30 million. The firm has invested in more than
45 leading companies within many niche consumer, commercial, specialty
distribution and service markets throughout the United States.