NUVESCOR BY THE NUMBERS: STATISTICS FROM A RECENT TRANSACTION
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GRAND RAPIDS, Mich. – October 14, 2022– NuVescor Group is pleased to announce the successful sale of Superior Manufacturing, LLC, to Purgo Holdings, LLC.
Superior Manufacturing, based in Fort Wayne, Ind., manufactures chemical-free, magnetic water conditioning systems used to reduce scale in residential, commercial and industrial applications. It operates under the name Superior Water Conditioning.
Purgo Holdings, LLC, a portfolio company of Wincove Private Holdings, LP, provides filtration and separation technologies for water, infrastructure, process filtration and separation. The acquisition of Superior is Purgo’s fourth since its formation and bolsters the platform’s water treatment product offering.
“We are excited to welcome Superior Water Conditioning to Purgo,” the Company announced. “Superior’s unique non-chemical conditioning product is a perfect add on to our LAKOS business and will allow for the expansion of our offering to existing customers and channel partners. Superior has been in the capable hands of the Sanderson family for many years. We are proud to continue their legacy of exceptional customer service and product quality in the water treatment markets.”
Scott A. Sanderson, Sr. – who with his sister, Terri Parker, co-owned the Company founded by their parents in 1964 – said the acquisition will benefit both companies.
“We have built the business over the last few years quite well and thought it was time to have some new blood to grow our father and mother’s legacy to much greater lengths,” he said. “Not only do we know some of the people who bought our company for many years, they also manufacture a product that is a good fit to be coupled with our product.
“We are excited about the future and believe the new owners will take what we have built over the last 58 years and grow it to be even more successful. They also know that the most important thing for us was to have our father and mother’s legacy continue for many years.”
Superior was assisted in the transaction by the NuVescor Group, a mergers and acquisitions company. “Working with Scott and Terri was great, and to see the legacy of their father and mother continue with a buyer like Purgo is truly something to celebrate,” said Travis Ernst, NuVescor’s operations manager. “The transaction was a win-win for Superior as well as Purgo, and we were honored to be a part of it.”
About Purgo Holdings, LLC
Purgo is a leading platform of filtration and separation technologies in high growth water, infrastructure, process filtration and separation markets. Purgo was formed in 2018 with the acquisition of LAKOS Corporation from Lindsay Corporation. LAKOS, based in Fresno, Calif., designs, manufactures and distributes branded water and liquid filtration products to the industrial, commercial, agricultural irrigation and residential groundwater markets. In 2021, Purgo acquired Steri, a Bohemia, N.Y., based designer and manufacturer of specialized filtration systems used in industrial processes primarily for the chemical and pharmaceutical end markets. In 2022, Purgo acquired ALSI, a Detroit, Mich., based manufacturer and distributor of air and liquid filtration and separation equipment used in industrial manufacturing and paint processing. For more information about Purgo, visit www.purgoholdings.com.
About Wincove Private Holdings, LP
Wincove Private Holdings is an investment company that creates long-term capital appreciation for its shareholders by partnering with business owners, entrepreneurs, and management teams to build market-leading companies. With offices in Boston and New York, Wincove has a permanent capital base, staying invested in its partner companies for an unlimited time. For more information about Wincove, visit their website www.wincove.com.
About Superior Manufacturing Corporation
Founded in 1964 in Fort Wayne, Ind., Superior was a pioneer in chemical-free water treatment technology. Founder Charles Sanderson Sr. launched the business with a vision of limiting the damage done by hard water without using hazardous chemicals. Second-generation owners Scott Sanderson and Terri Parker have increased sales by 369% since taking the company’s reins 10 years ago by keeping up with technological changes through extensive product research. Over its 58 years in business, Superior has more than 500,000 successful installations in all 50 states and worldwide and their water-treatment systems are installed in boilers, heat exchangers, cooling towers, chillers, water lines and other applications. Superior maintains a 23,000-square-foot facility in Fort Wayne.
About NuVescor Group
NuVescor Group, based in the Midwest, is a distinguished mergers & acquisitions service company that has served the manufacturing industry since 2007. The employees of NuVescor possess the full array of disciplines needed to complete successful and timely business transactions. NuVescor utilizes a proprietary proven process that greatly increases the success rates for business transactions as well as the customer experience. For more information about NuVescor, visit www.nuvescor.com.
A business owner’s guide to building employee confidence while selling your business
“There is comfort in the fact that my role is the same,” said Garnaat. “My goal has always been to serve the owner and company in the best possible way, and I figured that mindset would come back to benefit me as well.” While not all roles will remain the same post-acquisition, encouraging key managers to display a “company first” mentality as much as possible will help the rest of the employees follow suit and adapt to changes.
Garnaat identified transparent owner communication as a key component in alleviating employee stress, “IEQ’s owner kept me informed and involved in the steps of selling the business. Talking about the potential sale of the business was not a surprise or scary, it was a welcomed opportunity for me to help the owner get the business ready to sell. However, we had such a close personal relationship on top of the business relationship, we had a lot of trust in each other. That much early and open communication about selling may not make sense for another owner if the trust isn’t as strong.”
As an owner, be sure that you are confiding in only key managers you have a strong and trusted relationship with, as early news of a potential transition before negotiations and due diligence are finalization could send some employees running out of fear of a non-secured future. Additionally, many transactions don’t end up closing so there’s a good chance the transition may not happen. Telling key managers too far ahead or telling key managers that aren’t fully committed to the future of the company could backfire.
After negotiations and diligence have been finalized, mapping out in detail for the selling company’s management team what things will change and what things will not change can ease any transition fears. It’s important for the buyer to paint and communicate the post-transition picture to the entire team when the timing makes sense. Garnaat recommends, “Having a lot of clear and open communication with all staff at the company. When things are finalized and you know this is going to be the buyer, it’s ideal to bring in the buyer and have an employee meeting or several meetings to map out what the process is going to look like after the sale.”
Lastly, asking the buyer for a specific post-acquisition employee transition plan along with any changes to the organizational chart will help pinpoint key transition conversations that will need to take place. As the business owner, you may not agree with the changes the buyer is planning on making but helping prepare key managers on your team for those transitions will be crucial. Garnaat says that the team at IEQ is very satisfied post-transition. “Gallagher has been true to everything that was promised before the business sale closed. Things have gone very smoothly and I’m incredibly pleased with the new ownership.”
With the proper planning and timely and transparent communication, you can sell your business knowing your employees will be left in good hands!