July 2004
DeltaPoint Capital Management, LLC Announces its investment in PCore Electric Company, Inc. and Acquisition of LAPP Insulator's Bushing Division
(Rochester, NY) DeltaPoint Capital Management, LLC, a Rochester NY-based manager of private equity capital today announced the closing of its investment in PCore Electric Company, Inc. and acquisition of LAPP Insulator's Bushing Division. PCore Electric Company, Inc. was formed by a management and investor group including DeltaPoint, HSBC Capital (USA) Inc., and Yavuz Erkan, former Vice President and General Manager of Lapp Insulator's Bushing Division. Erkan will become President and Chief Executive Officer of PCore.
The acquisition was announced jointly by Lapp and PCore on July 14, 2004. The bushing division's 56 employees are now employed by PCore and will remain at 135 Gilbert Street in Le Roy, NY. PCore Electric Company, Inc. is a manufacturer and distributor of high voltage bushings used by electrical utility companies within transmission and distribution infrastructure.
"We are very pleased and excited about this investment", said David Waterman, Managing Director of DeltaPoint Capital. "LAPP's Bushings division's market position, technology and strong management team afford PCore tremendous growth opportunities".
"This transaction allows PCore to more aggressively expand its sales channels and production capacity to capitalize on a tremendous growth opportunity stemming from the pent up demand in the electrical infrastructure" said Yavuz Erkan, President and Chief Executive Officer of PCore, said. "The transition will appear seamless to our customers, vendors and employees."
"Investing in New York-based companies is one of my highest priorities," said Alan Hevesi, the New York State Comptroller and sole trustee of the New York State Common Retirement Fund. "Investing in PCore will not only help the firm to expand, but will generate additional jobs for New Yorkers. It is critically important to support companies like PCore that are building the infrastructure to prevent widespread power failures like the one that shut down New York State and much of the Northeastern United States last summer. I am proud that the State Retirement Fund helped make this transaction possible."
DeltaPoint Capital III's limited partners include the New York State Common Retirement Fund, which has committed $25 million to DeltaPoint Capital III as part of its in-state investment program. The $117 billion New York State Common Retirement Fund is the nation's second largest public pension fund. Alan G. Hevesi, New York State Comptroller, is the sole trustee of the Common Retirement Fund. The balance of committed capital has been raised among a number of individual and institutional investors.
The Comptroller's in-state investment program was recommended in 1999 by the State Legislature with the goal of investing a portion of the pension fund in New York-based businesses. Comptroller Hevesi has made the program a priority of his administration. Since its inception, the program has committed $298 million to eleven managers located throughout New York State , including DeltaPoint. Through these partners, the Pension Fund has invested $43.7 million in New York State businesses, helping to bring a total of $200 million in funding to these companies through a combination of pension fund money and money from other private investors. The program provides market rate returns to the pension fund while providing capital for New York businesses.
DeltaPoint Capital III is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC which targets investment in established, privately owned or closely held companies located in New York State. DeltaPoint Capital III will invest in as many as 15 businesses over the next four to five years. The principals of DeltaPoint Capital have been actively involved in providing investment capital to companies in New York State for the past 17 years. Through two prior capital funds and other investments, DeltaPoint's principals have invested in several New York State companies, and are actively managing five of these investments.
HSBC Capital manages a private equity and mezzanine business targeted at investing in middle market companies.
PCore Electric Company, Inc., formerly the bushings division of Lapp Insulator, LLC, provides apparatus bushings, related components, diagnostic services, and repairs to the electric utility industry and its equipment suppliers. Designed and manufactured under the company's ISO-9001 Quality Program, PCore products are applied around the world on power generators, transformers, circuit breakers, and substations. PCore is located in LeRoy, New York, 25 miles southwest of Rochester. For more information, visit www.PCoreElectric.com.