Charlotte-based private equity firm Falfurrias Capital Partners unveiled a plan Thursday to acquire companies that will service the countrys aging power grid, saying its first such investment is in a Monroe-based business.
Founded by former Bank of America CEO Hugh McColl and Marc Oken, former Bank of America chief financial officer, Falfurrias has acquired a controlling interest in Instrument Transformer Equipment Corp. ITEC manufacturers instrument transformer products, which allow safety devices for electric utilities to work properly.
Falfurrias is acquiring ITEC as part of its new North American Transmission and Distribution Group strategy. Falfurrias announced the formation of the group Thursday.
David Pacyna, a former CEO of Siemens North American Transmission & Distribution division, will be the CEO of the new Falfurrias venture.
The idea behind creating North American T&D Group was to sort of recognize that theres a lot of value in the industry in these smaller-size private companies that have been in business for lots and lots and lots of years, Pacyna said.
Pacyna said Falfurrias sees opportunity in investing in companies that can replace the countrys aging electricity infrastructure. He said ITEC, founded in 1993, has about 60 employees. No layoffs at ITEC are planned, he said.
If anything, our intentions are to accelerate growth plans the company was pursuing, he said.
John Cochran, ITECs CEO, and Paul Millward, the companys president, will remain with the company.
Ed McMahan, a partner with Falfurrias, said Falfurrias invests in companies that have at least $3 million to $5 million in annual profits. He said he could not disclose the financial details of the ITEC deal.