Business Description

MacLean Power Systems is one of the largest manufacturers of specialty electrical hardware, polymer insulators and mechanical connectors. The company’s products are sold worldwide through distributors and direct into the electrical utility markets and are utilized in power transmission and distribution grids. MacLean Power conducts its operations through 16 manufacturing facilities located throughout North America, Europe and China. The company is a subsidiary of MacLean-Fogg Company, a large family-owned industrial holding company.

Background

Nicolet’s President had developed a familiarity with the overall operations of the family holding company and established a prior relationship with management.  The family was seeking an investment partner to help MacLean Power pursue a more ambitious growth strategy.  The investment in MacLean Power provided growth capital to fund the acquisition of a business that had high strategic value but was generating minimal profitability.

Select Value Creation Initiatives

• Devised a flexible investment structure that accommodated the complex requirements of the company’s related entities and existing financing arrangements.
• Identified and assisted the company in an add-on acquisition and led a follow-on investment to support this transaction which generated significant cost and revenue synergies.

Outcome

After the formation of Nicolet Capital in 2007, Nicolet Capital’s President remained on the company’s board at the request of the corporate parent to provide strategic guidance to the company.  By 2010, MacLean Power’s EBITDA had grown nearly three-fold over the investment period facilitating a complete recapitalization of the business.  The investment in the company was fully realized in this recapitalization resulting in a 4.2x cash-on-cash return.