LOS ANGELES and SALT LAKE CITY, Feb. 06, 2019 (GLOBE NEWSWIRE) -- Platinum Equity announced today the acquisition of Pro-Mark, the parent company of Orbit Irrigation and Hydro-Rain, from affiliates of the company’s founders. Financial terms were not disclosed.
Headquartered in Salt Lake City, Orbit is a leading provider of irrigation systems and related products for the residential home improvement markets. Hydro-Rain serves the professional market with a line of contractor-grade irrigation and lighting products.
Pro-Mark was founded by Max Ericksen in 1971 and over more than 40 years his family built Orbit into a global distribution network with products available in 40 countries and all 50 U.S. states.
“Orbit has created a successful business through a combination of product innovation, quality and entrepreneurial spirit,” said Platinum Equity Partner Jacob Kotzubei. “With the addition of our financial, operational and M&A resources to support the company’s growth, Orbit is poised to take yet another significant step forward. There are opportunities to deploy operational best practices throughout the organization and leverage the company’s brand to drive additional growth in both core and adjacent markets.”
Orbit’s product line includes hose-end devices, controllers, timers, underground irrigation systems and other accessories sold primarily through retail and e-commerce channels. Orbit is a leader in “smart watering” technology and the company’s popular B-Hyve suite of products help customers reduce water usage and save money.
Orbit CEO Stuart Eyring will remain in his current position following the transition to new ownership.
“This is exciting news for our company and our customers,” said Mr. Eyring. “With Platinum Equity’s support, we’ll be able to make additional investments in growth and new technology. We are very excited about the opportunities ahead of us.”
Former Pro-Mark Chairman David Beck said Platinum Equity and Orbit are a great fit.
“We sought a partner with the financial resources and operational know-how to take a family-owned, entrepreneurial business to the next level,” said Mr. Beck. “It was clear Platinum Equity values the culture we created over the past 40 years and has great depth of experience helping businesses like Orbit maximize their potential.”
Former Orbit CEO K.C. Ericksen, representing brothers Greg, Mike and Steven, who also served in senior leadership roles at the company, said the business is well positioned for continued growth.
“We are proud of everything Orbit has accomplished and know the company has a bright future ahead,” said Mr. Ericksen.
Mr. Kotzubei said the Orbit acquisition also reflects Platinum Equity’s commitment to investing in the lower middle market as the firm continues to grow.
“We are very active in the lower middle market and Orbit represents another exciting opportunity for Platinum to create value in that space,” said Mr. Kotzubei.
Wilkie Farr & Gallagher served as Platinum Equity’s legal counsel on the acquisition of Pro-Mark. PNC Bank, N.A., served as administrative agent for the transaction. Steel City Capital Funding, a division of PNC Bank, N.A., provided a portion of the financing.
Bennett Tueller Johnson & Deere, LLC served as legal counsel to Pro-Mark. Lincoln International served as exclusive investment banking representative to Pro-Mark on the transaction.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Platinum Equity specializes in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O® – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 23 years, Platinum Equity has completed more than 250 acquisitions.
About Orbit
Orbit's mission is to bring smart technology to homeowners, landscape professionals and farmers across the globe. The company serves markets spanning six continents and 40 countries, and for decades has been a worldwide leader in designing and building innovative water optimization products. For more information, visit www.orbitonline.com.