A Dayton-area company that employs hundreds of people across multiple states has been acquired by a California investment firm. The deal could prompt more growth for the company.
Crane 1, a Miamisburg-based provider of overhead crane maintenance, repair and overhaul (MRO) services and equipment, was purchased by L Squared Capital Partners, a Newport Beach, California company that makes long-term investments in businesses across a variety of sectors. Terms of the deal were not disclosed.
Executing the sale was Pfingsten Partners LLC, a private equity firm that has owned Crane 1 since October 2015. In that time, Crane 1 has grown to become one of Pfingsten's largest providers of overhead crane MRO services and equipment in the United States.
Piper Sandler & Co. advised Crane 1 and Pfingsten on the transaction, and Katten Muchin Rosenman LLP served as legal counsel. Vedder Price served as legal counsel to L Squared.
The purchase of Crane 1 represents L Squared’s second platform investment in Fund III — a $505 million private equity fund that closed in September 2020. The company described Crane 1 as "a proven M&A platform operating in the highly fragmented $3 billion market for overhead crane MRO services and equipment." It has completed six acquisitions in the last five years.
Crane 1 is the only scaled, private equity-backed consolidation platform in the industry with operation across 15 states, according to a press release announcing the acquisition. The company and its 225 employees provide overhead crane MRO services and equipment that aim to maximize safety, diminish liability, reduce maintenance costs and increase overall productivity.
The company offers a full suite of services, including Occupational Safety and Health Administration (OSHA)-mandated inspections, maintenance, repair, design and installation of overhead crane systems, as well as below-the-hook lifting devices. Additionally, Crane 1 recently launched an e-commerce website branded “Hoist Central." The site provides customers with service on hard-to-find controls and parts.
“L Squared is well suited to add value as Crane 1’s new partner given their proven consolidation playbook across multiple industries,” Crane 1 CEO Bob Vevoda said. “Crane 1 enjoys strong momentum with our loyal customer base because of the commitment of our team, especially our front-line technicians. We look forward to continued growth with a focus on safety and building upon our reputation as the 'employer of choice' for top technician talent.”
In partnership with the management team, L Squared says it plans to continue building upon Crane 1’s leadership position across technician talent and equipment delivery to provide value for customers.
“L Squared is excited to begin our partnership with the Crane 1 team," L Squared Partner and Crane 1 Board Member Sean Barrette said. "The company is well aligned with our investment strategy given that it operates in a highly fragmented market where demand is driven by both regulation and critical need for safety. We look forward to continuing Crane 1’s strong momentum in consolidating the industry and serving customers across a broad set of end markets.”
