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Morgenthaler Private Equity Announces Recapitalization of Trachte, Inc.

October 19, 2015, 07:53 AM
Filed Under: Manufacturing

Morgenthaler Private Equity ("MPE") announced the recapitalization of Trachte, Inc., a leading manufacturer of preassembled and modularized control buildings.  The company's custom buildings house critical electrical components that control and protect electrical infrastructure, such as transmission & distribution substations.  In addition, Trachte buildings are used extensively in industrial applications to house equipment, such as switchgear, motor controls, and pumps.  Trachte serves utilities, OEMs, and other channel partners in the power generation, energy, chemical processing, data center, and general industrial end markets.

Alliance Partners LLC provided senior debt financing to support the transaction. Hartford Investment Management Company (HIMCO) and vehicles managed by Siguler Guff & Company, LP and its affiliates provided subordinated debt financing.  Mintz Levin served as legal advisor to MPE.  Cleary Gull Inc. served as investment banking advisor to Trachte.

MPE partnered in the transaction with the existing shareholders, including retiring President Randy Trachte and retiring VP of Sales Ron Trachte, as well as the continuing senior management team.  Going forward, Trachte will be led by incoming CEO Matt Cahill, an experienced operating executive, and VP & COO Paul Holmes, a 25-year Trachte employee.  Joe Machado, Partner at MPE, said, "Trachte has developed a tremendous reputation for product quality, engineering and project management support, on-time delivery, and customer service.  On behalf of MPE, we are excited to partner with Matt, Paul, and the rest of the very talented Trachte organization as we help the Company continue its impressive growth."

Headquartered in Oregon, Wisconsin, Trachte, Inc. manufactures preassembled and modularized, design-flexible metal control buildings.

Morgenthaler Private Equity is the private equity group of Morgenthaler.  Based in Cleveland, Ohio, and Boston, Massachusetts, MPE focuses on the lower middle market with transaction values up to $150 million.  MPE has two primary target investment areas: high-value manufacturing and proprietary business services.  Morgenthaler is a leading, national private equity and venture capital firm, with approximately $3 billion under management and investments in more than 300 companies over its 46-year history. 

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