Frontenac Completes Continuation Vehicle with Motion & Control Enterprises

Frontenac, a Chicago-based private equity firm, has announced the completion of an oversubscribed secondary market transaction to fund future growth initiatives of Motion & Control Enterprises (MCE), a leading industrial distributor and services provider. This continuation vehicle will enable Frontenac to continue investing in MCE and propel the company into its next phase of growth. The transaction was led by Churchill Asset Management and 50 South Capital, who are joining a group of new and existing Frontenac investors.

MCE specializes in providing highly engineered, full lifecycle fluid, flow, automation, and air solutions. The company was acquired by Frontenac in 2018, in partnership with Charley Hale, the CEO. Since then, Frontenac and Mr. Hale have completed 10 acquisitions and successfully grown EBITDA by over 15 times. The continuation vehicle will provide MCE with the resources needed to accelerate organic growth initiatives and pursue additional acquisition opportunities.

Frontenac's executive-led strategy has been instrumental in driving the growth of MCE and other portfolio companies. With the continuation vehicle, Frontenac can continue to support strong companies and executives like MCE and Charley Hale. This further emphasizes Frontenac's strategy to build substantial and long-standing companies.

Ron Kuehl, Managing Partner at Frontenac, stated, "The increase in size and value of MCE is a result of operational improvements, driving significant organic growth, and executing on an established acquisition playbook, which is core to Frontenac's strategic approach. We still have a long runway for those initiatives to substantially grow the platform. We're excited about the opportunity to continue building on that momentum in partnership with the MCE team."

Neal Sahney, Principal at Frontenac, added, "Frontenac has been a trusted partner from the beginning, and they've supported our organic and acquisition-based growth. We've transformed MCE into a company that was recognized in 2023 by Modern Distribution Management on its Top Industrial Distributors list. This additional investment allows us to extend our partnership with Frontenac as we continue to scale our company."

The transaction was facilitated by Evercore, acting as the financial advisor, with legal counsel provided by Kirkland & Ellis.

About Frontenac

Frontenac is a private equity firm based in Chicago. The firm specializes in investing in lower-middle-market buyout transactions in the consumer, industrial, and services industries. Through their CEO1ST approach, Frontenac works in partnership with established operating leaders to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. With over 50 years of experience, Frontenac has worked with over 300 owners of mid-sized businesses, providing solutions for complex transition issues of liquidity, management enhancement, and growth planning.

About MCE

Founded in 1951, MCE is a leading supplier of technical fluid power, automation, flow control, compressed air, and lubrication products, repair services, and bespoke solutions. With 39 facilities located in 13 states, MCE serves more than 23,000 MRO and OEM customers. The company's dedication to providing high-quality products and services has earned them recognition on Modern Distribution Management's Top Industrial Distributors list.

About Churchill Asset Management

Churchill Asset Management, an affiliate of Nuveen, specializes in providing customized financing solutions to middle-market private equity firms and their portfolio companies. With $46 billion of committed capital, Churchill offers a range of debt and equity financing options and has a long history of disciplined investing.

About 50 South Capital Advisors

50 South Capital Advisors, a subsidiary of Northern Trust Corporation, provides investment solutions to private equity and hedge fund investors. With approximately $10.2 billion in assets under management and $3.7 billion in assets under advisement, 50 South offers diversified access to the private equity market through its fund of funds investment practice.

In conclusion, Frontenac's completion of the continuation vehicle with Motion & Control Enterprises marks an important milestone in their partnership. With this additional investment, MCE is well-positioned for accelerated growth and expansion in the industrial distribution and services sector.