Based in Anderson, Indiana, Connecticut Electric (“CE”) is a leading manufacturer of low-voltage residential replacement circuit breakers, electrical power supply products, and other specialty electric and power products. The business was established in 1906 and primarily sells its products through nationwide distributors and hardware retailers such as Ace Hardware, Lowe’s, Home Depot, and Grainger along with leading e-commerce retailers such as Amazon and Zoro.com.
In an effort to diversify the Company’s product portfolio and customer base, Connecticut Electric commenced strategic acquisition discussions with ATI Electrical Supply and its affiliate Power Assemblies (“ATI/PA”). ATI and Power Assemblies distribute and manufacture a full-line of portable power products, commercial and industrial switchgears, and other products through ABB, Hubbell, Leviton, Schneider Electric, and other commercial enterprises.
Given its significant corporate finance experience, Promontory Point Capital was engaged by Connecticut Electric to arrange financing to fund the acquisition of ATI/Power Assemblies. After being retained in late-September, 2023 PPC quickly prepared a financing memorandum, financial forecasts, and a preliminary online data room to address the client’s timeline. PPC’s outreach efforts encompassed a mix of bank and non-bank lenders resulting in securing more than 10 financing proposals by mid-November. A financing package arranged by PPC encompassing a mix of senior debt, mezzanine financing, and private equity capital supported Connecticut Electric’s acquisition initiative, while providing the Company with additional working capital for the newly combined business.
The combination of CE and ATI/PA creates a balanced end-market customer mix across residential and industrial/commercial markets, while solidifying the overall business as the market leader in its segments of focus. PPC closed this financing transaction during the 4th quarter of 2023 representing another successful Done Deal for our firm.