April 2011
ROCHESTER, N.Y., April 8, 2011 - DeltaPoint Capital Management, LLC, a Rochester, NY based private equity fund, has acquired PACS Industries, Inc. (PACS), a leading independent manufacturer of medium-voltage metalclad switchgear, Power and Control Center (PCC) buildings, and structural substations. PACS is the second platform acquisition for DeltaPoint's most recent fund, DeltaPoint Capital IV, L.P. (Fund IV). DeltaPoint has invested $7,150,000 in the transaction to acquire equity and support further growth of the enterprise.
"DeltaPoint is extremely excited to be partnered with a strong New York State based company in PACS Industries, Inc." said Kevin Halpin, a Director at DeltaPoint and member of the PACS Board of Directors. "We feel that the company occupies a unique position in the metalclad switchgear space, and see this as an opportunity to generate above market returns for our investors."
PACS is headquartered in Great Neck, NY and also has a 200,000 square foot, vertically integrated manufacturing facility in Mount Vernon, OH. The Company serves electric utilities, large manufacturing plants, and many other industries which require large blocks of electric power to operate their facilities such as the steel industry, the wind power industry, the oil & gas industry, and the railway traction industry, among others. Since 1972, PACS has been devoted to the designing and manufacturing of electrical power distribution metalclad switchgear, and is the only privately held switchgear company in the United States with a complete arc resistant medium voltage product line. PACS's arc resistant line, PACsafe, contains arc-mitigation systems (AMS), and is able to keep service personnel safer by quickly detecting, containing, and diverting arc explosions.
DeltaPoint is partnering in the transaction with current PACS CEO, Bruce Dalis, whose family founded the Company in 1972. Mr. Dalis has been intimately involved in the company's growth and maturation, and feels that the company's best days are yet to come. "We are building upon our unique market position and proprietary technology to better compete in the markets that we have chosen to prosecute. PACS shows favorably against competition because our products are better engineered, more soundly manufactured, and are ultimately safer for the technicians that are working in the field. The time for PACS to grow is now, because our market opportunity is significant." Dalis commented.
Former Bausch & Lomb CFO Steve McCluski is the Chairman of PACS's Board of Directors, and spoke of the company's aggressive growth intentions. "In nearly four decades of operating PACS, the Dalis family has done a wonderful job of establishing the company as a strong niche player in the electrical utility industry. Under DeltaPoint's ownership, we will re-deploy the financial resources of the firm with a stronger emphasis on growth, and intend to grow dramatically, both organically and through acquisition."