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. 

Partnering with a private equity group can drive tremendous growth for manufacturing and automation businesses thanks to the virtually immediate injection of funding and expertise that comes with these partnerships. It’s a major opportunity that many business decision-makers have leveraged to drive growth, but still remains underutilized by some. If you’re on the fence about partnering with a private equity group or just now starting to consider this option, take a look at these reasons why you need to partner with the right private equity group.

Private equity (PE) groups allow for rapid scale

Organic growth is excellent but scaling up a business quickly often requires funding and significant overhead, especially in manufacturing and automation. Partnering with a private equity group allows growth-primed companies to lean on their private equity partners for the capital required to invest in themselves. Whether that funding is needed for equipment, hiring, real estate, or any of the other expansive needs that can become a factor when scaling up a business.

PE groups provide leadership and experience

Private equity firms exist to boost efficiency and profitability. In working with other businesses, they can provide leadership and strategic experience and expertise. Many of these groups are very hands-on and provide valuable support and leadership to their growing partners with a focus on improving both their top and bottom lines.

John Garner, Head of New Business LDC, weighed in on this point in an article written for LDC.co.uk.

“While partnering with a private equity investor can enhance organic growth strategies,” Garner said, “It can also give management the confidence to try new strategies that may not have previously been considered, such as expanding internationally or buying complementary businesses to diversify services or increase market share.”

PE firms will help you complete your management team… and overstepping is very rare

According to co-founder and CEO of Gulf Capital, Dr. Karim El Solh in an interview with entrepreneur.com, “PE firms back management teams before they back companies. It is very important that the right management team is in place to execute on the ambitious growth plans. If a management team has a gap or uneven capabilities, the PE firms can step in and help strengthen the management team by sourcing experienced professionals from their wide network of contacts.”

He also added that, “In addition to the management team, PE firms will focus closely on the composition of the board and strive to attract the right mix of industry, strategy and finance experts at the board to help guide management on both strategy and execution. PE firms prefer to operate at the board level and empower the management team to execute their business plan. While they can help from time to time on a micro level or on a specific task, such as securing adequate bank financing, they prefer to remain involved at the board level and give the CEO and the team the free reigns and accountability to operate and achieve the business plan. However, they will step in and intervene if management is facing difficulties or not executing according to plans.”

If your goals are aligned with your PE group, growth will often follow

Another excellent point Dr. Karim El Solh brought up during his interview with entrepreneur.com is the importance of aligning goals with your PE firm. He explains that the PE group will spend considerable time drafting a proper business plan that all parties are aligned with upfront for good reason, “To ensure that management have clear goals to strive for and if they achieve them, the long-term incentive plan will ensure that they are properly rewarded accordingly.”

As Dr. Karim El Solh explains it: “By clarifying the long-term goals and linking financial rewards to them, PE firms ensure that the management team is properly aligned and everyone is working towards the same goals. Most long-term incentive plans include a cash (bonus) component and a stock component, which vests over time. Naturally, management is not allowed to sell its shares in the company until a proper exit is secured and both the PE firm and management are able to sell to the next buyer at the same time. By focusing together on the end financial result, the PE firm and management are completely aligned and share the same financial interests.”

When both PE firms and the management teams within businesses are pushing in the same direction, it is much easier for companies to scale quickly and efficiently – setting themselves up for long-term success.

If you’re a manufacturing or automation decision-maker who is looking to grow their business by partnering with a private equity group, NuVescor can help get you partnered with the right group. With years of experience and a proven process, our team delivers excellent results. Click here to get in touch with us.

When we last wrote about Mission Design & Automation, we were sharing the news that they were acquired by Concurrence Capital Holdings back in 2017. Now, 5 years later, we’re pleased to announce that the Ottawa County-based manufacturing automation company was named as one of The Michigan 50 Companies To Watch by Michigan Celebrates Small Business (MCSB). We’re proud to have been able to watch Mission grow after working with Rua Associates to represent Mission during their acquisition. We also think a lot can be learned from their example.

Here are several key takeaways for other manufacturing or automation businesses that are looking to sell and for companies looking to acquire those businesses.

Under new ownership, new growth is possible

Mission Design & Automation’s acquisition by Concurrence Capital Holdings has yielded positive results for both organizations. As a private investment and management firm, Concurrence was able to offer strategic capital, expertise, and partnerships to the already successful structure and technology of Mission. This allowed Mission even more room to grow and develop into the successful business we see today while allowing Concurrence Capital to benefit from that growth.

Commenting on the acquisition in 2017, Michael Brom, Managing Partner at Concurrence Capital Holdings predicted: “They are well-positioned for even greater growth as the automation industry continues to flourish. Jason Byrd and I are thrilled to partner with them and leverage our experience to help support their continued growth.”

Today, we are seeing that this prediction was correct both in regards to the growth of Mission Design & Automation and the growth of the manufacturing automation sector. In fact, the industrial automation market is expected to reach $355.44 Billion by 2028 with a CAGR of 9.2% between 2021 to 2028.

For sellers, a merger or acquisition can perpetuate your legacy

When you own a business, your employees rely on you. But it’s important to remember that deciding to step away does not mean your employees will not be taken care of. Mission Design & Automation’s success has allowed its employees to continue to grow and develop in their roles and responsibilities while also providing opportunities for promotion within the Concurrence Capital Holdings LLC network. A merger or acquisition can often lead to more jobs within the company allowing previous owners to improve the positive effects they have already had on their community even after stepping away.

Looking to build value with an exit plan in mind? Or looking to grow your business through mergers and acquisitions? NuVescor can help.

Whether you’re looking to buy, sell, or merge, Nuvescor can help you achieve your M&A goals. With years of experience and a proven process, our team delivers excellent results, whether you want to buy or sell a business. When you work with us, you are not just getting one person; we have a team of people who will help you with each different aspect of your business transaction.

Below is a list of all the services our team provides:

• Transaction Facilitation
• Project Management
• Market Development
• Financial Analysis
• Business Writing
• Transaction Support
• Access To Our Network of Potential Buyers & Sellers

If you’re interested in learning more, click here to get in contact with us!