Huron Capital Partners recently announced one of its portfolio companies, Albireo Energy, had acquired GxP Automation, a small provider of building automation solutions predominately for the life sciences industry. It is the latest in a long string of acquisitions that has made this a newsworthy year for the downtown Detroit-based private equity firm.
Huron Capital Partners and its portfolio companies have made a dozen acquisition so far this year. Last year the number of acquisition hit 20.
"We really are on a tear," says Gretchen Perkins, partner with Huron Capital Partners
. "We have a couple of platforms that lend themselves to this."
Those two portfolio firms, also known as platforms, are Jensen Hughes
and Albireo Energy
. Albireo Energy specializes in making commercial and institutional buildings more energy efficient and streamlined. Jensen Hughes
provides fire protection engineering services.
Jensen Hughes and Albireo Energy have been acquiring small companies, a practice often called add-ons, to build a larger, more efficient business operating on a national level. The team at Huron Capital Partners looks for fragmented industries and then rounds up a number of small but significant players in the space to create larger businesses that can be sold at significant profit.
"We're doing it the hard way," Perkins says. "It's hard to do 12 add-on acquisitions. They're small companies with less sophisticated systems."
Huron Capital Partners has become more sophisticated itself, expanding its team to 22 employees. It is about to welcome three new people, including two analysts and one administrative assistant. Those new team members are expected to continue to help Huron Capital Partners keep expanding its company portfolio at a rapid pace.
"We seek to continue this pace," Perkins says. "There should be more add-ons for other platforms."
Source: Gretchen Perkins, partner with Huron Capital Partners
Writer: Jon Zemke