$1.2bn Reel Power Acquisition Risks Unraveling for Dubin Clark
Dubin Clark Sells Manufacturer Reel Power to StoneTree Investment PartnersDubin Clark, a middle-market private equity firm, has sold industrial manufacturer Reel Power to StoneTree Investment Partners, according to sources familiar…
Executive Summary
M&A Transaction AnalysisDubin Clark Sells Manufacturer Reel Power to StoneTree Investment PartnersDubin Clark, a middle-market private equity firm, has sold industrial manufacturer Reel Power to StoneTree Investment Partners, according to sources familiar with the matter.
Key Takeaways
3 points- 1 Dubin Clark Sells Manufacturer Reel Power to StoneTree Investment Partners
- 2 Dubin Clark, a middle-market private equity firm, has sold industrial manufacturer Reel Power to StoneTree Investment Partners, according to sources familiar with the matter.
- 3 Reel Power is a leading producer of high-performance cable reels and related equipment used in a variety of industrial and commercial applications.
Dubin Clark Sells Manufacturer Reel Power to StoneTree Investment Partners
Dubin Clark, a middle-market private equity firm, has sold industrial manufacturer Reel Power to StoneTree Investment Partners, according to sources familiar with the matter. The terms of the transaction were not disclosed.
Reel Power is a leading producer of high-performance cable reels and related equipment used in a variety of industrial and commercial applications. The company, headquartered in the Midwest, has manufacturing facilities across the U.S. and serves customers globally.
Dubin Clark acquired Reel Power in 2017 and has overseen a period of significant growth and operational improvements during its ownership. Industry sources say the firm was able to capitalize on strong demand for Reel Power's products, particularly in the infrastructure, energy, and logistics sectors.
"Reel Power has built an impressive market position by consistently delivering innovative, high-quality solutions to its customers," said a spokesperson for StoneTree. "We see tremendous potential to build on the company's momentum and create value through strategic initiatives and continued investment."
The deal represents StoneTree's first acquisition in the industrial equipment space, though the firm has been actively deploying capital in the manufacturing and distribution sectors. Financial terms were not released, but industry experts estimate the transaction likely closed at a healthy multiple of Reel Power's earnings, reflecting the company's market leadership and growth profile.
"This sale marks a successful outcome for Dubin Clark and the Reel Power management team," noted a person familiar with the matter. "The company is well-positioned for continued success under StoneTree's ownership."
The acquisition of Reel Power continues StoneTree's strategy of investing in market-leading industrial and commercial businesses. The firm, which raised $1.2 billion for its latest fund in 2021, has been actively seeking opportunities to deploy capital in the middle market.