– Tecum Capital Partners (“Tecum”) is proud to announce its new investment in National Power Corporation (“National Power” or the “Company”). Tecum partnered with C3 Capital Partners (“C3”) to provide subordinated debt and equity to support the transaction led by Valley Ridge Investment Partners (“Valley Ridge”; collectively, the “Investor Group”). The original founder and existing CEO, Eddie Youngblood, will remain with the Company and retain a minority stake. Financial terms of the transaction were not disclosed. In conjunction with the transaction, National Power Corp becomes National Power, LLC.
National Power is headquartered in Raleigh, North Carolina (www.natpow.com
). Since its founding in 1985, the Company has established itself as a regional leader in its markets for mission critical electrical and infrastructure installations for telecommunications companies, sales of power generation equipment (the exclusive Industrial Distributor for Generac Power Systems in the Carolinas), service of all makes of generators, and sales of battery back-up and power quality equipment.
“This is a fantastic outcome for National Power, our customers, and employees. This Investor Group has the desire, vision, and financial capability to grow the Company beyond the success we have had over the last 30 years,” said founder Eddie Youngblood, “I am honored to have created such a company based on honesty, integrity and customer focus, and this Investor Group recognized and valued my life’s business accomplishment.” With the financial support of the Investor Group, the Company expects significant additional growth investment in hiring of field service technicians, expanding product and service offerings, upgrading enterprise resource planning systems, and incorporating inorganic growth opportunities.
Mark Tedford of Valley Ridge commented on the transaction, “As our name ‘Investment Partners’ indicates, Valley Ridge Investment Partners strives to find the best partners in founder-led companies and in our financing partners. We found high quality partners in both respects on this transaction.” John Sheffield, also of Valley Ridge added, “We are very excited to have been supported by Tecum and C3 in this transaction with the founder, Eddie Youngblood, who will remain actively involved. Tecum was just recently named to Inc. Magazine’s 50 Best Private Equity Firms for Entrepreneurs, so their involvement here is a perfect match. Tecum and C3 have successfully partnered together on other investments as well.”
Stephen Gurgovits, Jr., Managing Partner of Tecum, stated, “We are very excited to help another successful, high integrity entrepreneur take their company through its next phase of growth and operational enhancement in an expanding industry.” Matt Harnett, Partner of Tecum, added, “Collectively, we feel we have a very strong bench at the Company and within the Investor Group to build upon the past successes of National Power well into the future. We have a great relationship with C3 and are very excited we could come together on another strong outcome behind the leadership of Eddie Youngblood and Valley Ridge.”
The Deal Team from Tecum consisted of Matt Harnett, Sean Edmonson, and Dan Drew.
ABOUT TECUM CAPITAL
Tecum Capital Partners is an independent investment firm based in Pittsburgh, Pennsylvania with over $750 million in assets under management. Tecum is a multi-strategy investor and is currently investing out of its second SBIC Fund. The investment team partners with independent sponsors, family offices, business owners seeking succession plans, and management teams to create shared success. Since 2006, Tecum’s investment professionals have invested in over 80 platform and add-on acquisitions. Tecum specializes in growth-oriented, middle market companies across the broader high-value manufacturing, value-added distribution, and business service sectors, with a focus on businesses with EBITDA greater than $2 million. Tecum seeks to invest $5 million to $20 million in potential portfolio companies. For more information, please visit www.tecum.com
ABOUT VALLEY RIDGE INVESTMENT PARTNERS
Valley Ridge was founded in New Canaan, Connecticut as an independent sponsor private equity firm to make control investments in lower middle market industrial companies. Valley Ridge searches for unique situations and untapped growth opportunities to build market leading enterprises on the foundations established by visionary entrepreneurs. Valley Ridge’s goal is to build successful partnerships with its investors and the management teams of the companies in which it invests. For more information, please visit www.valleyridgeip.com
ABOUT C3 CAPITAL
C3 Capital is an experienced SBIC mezzanine lender with offices in Kansas City and Phoenix. C3 has invested over $500 million in more than 80 companies since 2003. C3 provides expansion and acquisition capital to lower middle market companies across the United States, working closely with entrepreneurs and sponsors, owners and managers to execute growth strategies and enhance long-term enterprise value. The funds make $3-15 million investments in the form of subordinated debt or preferred equity in established businesses with a history of profitability. C3 currently manages three funds, all licensed as Small Business Investment Companies, with combined assets greater than $400 million. For more information, please visit www.c3cap.com