Prospect Partners Completes Sale of Velvac, Inc.
CHICAGO, ILL.—April 10, 2017: Prospect Partners, LLC, a leading private equity firm investing in lower-middle-market companies, today announced that it has sold its interest Velvac, Inc., the premier designer and manufacturer of proprietary vision technology for commercial vehicles, to The Eastern Company ("Eastern") (NASDAQ: EML). Prospect Partners initially acquired Velvac, of New Berlin, Wis., in 2005.
Founded in 1934, Velvac serves diverse markets within the heavy and medium duty truck, motorhome and bus markets. Velvac is a Tier 1 supplier of mirrors and camera-enabled vision systems, and sells its aftermarket components and vision systems through aftermarket channels as well as directly to OEM dealers and OEM parts distribution centers.
"Velvac has been a highly rewarding investment for Prospect Partners," said Rick Tuttle, a Founding Principal of Prospect Partners. "It has been an honor to partner with a terrific management team, provide capital support for select strategic acquisitions, and be part of Velvac's exciting transition from an RV-centric supplier to the leading player in multiple attractive niche markets."
Added Prospect Partners' Principal Erik Maurer: "Velvac's Jeff Porter was a great CEO partner who built a first-class operating team and deftly guided the company into new product markets, new distribution channels, and a strong position in every segment it entered."
A leading innovator of proprietary vision systems for commercial vehicles and motorhomes, Velvac introduced its first camera-enabled vision system in 2006 and now sells approximately 45,000 camera-enabled units annually. Velvac recently introduced its Road-iQ™ 360-degree view camera, recording and communication system, and announced TrailerLink™, a new patent-pending solution that supports trailer-to-tractor video and data communications.
"Prospect Partners has been tremendous to work with these past 11 years," said Velvac's CEO Porter. "They supported our management team in good times and bad. Their support during the depths of the Great Recession laid the groundwork for our emergence from the downturn as a much stronger competitor and propelled Velvac to rapid growth these last seven years. The professionalism and integrity exhibited by the Prospect Partners team during their investment period was unmatched."
About Prospect Partners
Prospect Partners is a leading private equity firm investing in smaller lower-middle-market companies, managing $470 million across three funds. A highly experienced and active investor, Prospect Partners focuses exclusively on management-led leverage recapitalizations and acquisitions of niche market leaders with revenues typically under $75 million. Since 1998, Prospect Partners has completed over 140 transactions nationwide in the building of nearly 50 platform companies in widely diverse niche manufacturing, distribution, and specialty service markets.