Audax Group has signed a deal to acquire a Siemen’s spinoff, known as elmo vacuum technology, and Nash Engineering Co. The plan is to merge the two. Together, they are expected to average more than $200 million in revenue.
Paul Spinale, a managing director of Audax Group, said that “the deal is very complicated and won’t be completed for another two to four weeks.” Terms were not disclosed.
Nash Engineering makes vacuum pumps, gas compressors and ejectors for pulp and papermaking, electrical production and other heavy industries. Elmo vacuum technology does basically the same thing, but focuses on the European and Asian markets.
“We are excited about our investment in this new company because of the clear strategic rationale of this merger,” said Spinale.
Prior to this deal, Audax Group’s last deal was in June 2001 when it bought $45 million worth of preferred stock for a majority stake in Indian Motorcycle Company, the oldest U.S. manufacturer of motorcycles.
Founded in 1999 by Geoffrey Rehnert and Marc Wolpow, two former Bain Capital executives, the Audax Group has three divisions – Audax Private Equity, Audax Venture Capital and Audax Mezzanine – and each division has its own fund. Audax Private Equity Fund LP closed on $500 million in early 2000. The fund looks to invest in mid-market and growth stage companies in the health-care, media and technology sectors.