Private Equity Firm Takes Majority Stake in Hynes
YOUNGSTOWN, Ohio -- The majority interest in Hynes Industries is now owned by Resilience Capital Partners, a Cleveland private equity firm that since its founding in 2001 has invested in 40 companies under 23 platforms.
The Bresnahan family will retain a minority stake in the company, according to the announcement from the private equity firm. Terms of its investment were not disclosed.
Said William J. Bresnahan, a member of the company’s board of directors in a prepared statement, “Our commitment to working alongside our new partners to take Hynes to the next level of excellence is strong. We welcome the Resilience team to the Hynes family and look forward to this new chapter in the company’s long history.”
Resilience Capital Partners’ ownership includes Hynes Industries Inc. and Hynes Kokomo LLC, which the equity firm says will operate as a “newly formed platform company that will continue under the name Hynes Industries.”
The announcement comes as Hynes is undergoing a $6.5 million expansion and consolidation of its operations into the former Wean building at 3805 Hendricks Road here. The relocation began in July with the arrival of a new $2.5 million roll-forming mill custom built for Hynes. “We expect the whole project to take the balance of 2014,” D.R. Golding, vice president, strategic development for Hynes, told The Business Journal in May.
The expansion project received help from the Ohio Tax Credit Authority in the form of seven-year, 40% job creation tax credit approved May 20. In its application for state assistance, Hynes said it would add 42 employees to its local workforce of 140
Hynes manufactures rolled formed shapes, strip steel and flat wire for a diverse base of customers “operating within the truck trailer, building and construction products, home and long-term care products and a variety of other markets,” Resilience Capital Partners noted in its announcement.
“On behalf of the entire Resilience organization, we couldn’t be more pleased with the opportunity to partner with the Bresnahan family and build upon their 50 years of family ownership,’ said Steven Rosen, Co-CEO of Resilience Capital Partners, in a statement. “This Resilience investment will ensure this company, based in Ohio, the heart of the industrial Midwest, will continue to be an industry leader and provide support to its customers as they expand and grow both nationally and internationally.”
In describing its operations, Resilience Capital Partners says it invests in niche-oriented manufacturing and business service companies with sustainable market positions and a clear path to cash flow improvement. The private equity firm targets “platform businesses with $25 million to $250 million in revenues across a broad range of industries where it can improve a company's operations, competitive positioning and profitability.”
Resilience-portfolio companies today employ more than 7,000 people in 14 states and collectively represent over $2 billion in revenues.
Resilience also manages in excess of $320 million for its global investor base, which includes pension funds, insurance companies, foundations and endowments, fund of funds, wealth managers, and investment consultants.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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