Information on the Target

Myers Emergency Power Systems, LLC ("Myers EPS"), headquartered in Bethlehem, Pennsylvania, is a distinguished designer and assembler of highly engineered, critical emergency lighting power solutions and advanced controls technology. The firm leverages its innovative approaches and Internet of Things (IoT) capabilities to deliver integrated emergency backup power solutions, aligning with customer needs while adhering to energy conservation requirements. Myers EPS's vertical integration and robust research and development capabilities have established its reputation as a category leader within this high-growth niche market.

Since its inception, Myers EPS has positioned itself at the forefront of the emergency power solutions sector, emphasizing not only product reliability but also cutting-edge technological advancements. The company's commitment to innovation has proven essential in maintaining its leadership status in a rapidly evolving market.

Industry Overview in the Target’s Specific Country

The emergency power solutions industry in the United States presents substantial growth potential, driven by increasing demand for reliable power systems in various sectors, including healthcare, data centers, and commercial real estate. As businesses prioritize continuity of operations and safety regulations, the need for sophisticated emergency power solutions has become critical.

Furthermore, the emergence of smart technologies and the Internet of Things has transformed traditional approaches to power solutions. Companies are now seeking integrated systems that not only offer backup power but also provide smart controls for enhanced operational efficiency. This shift has created opportunities for innovators like Myers EPS to capture market share and lead in product development.

Additionally, the growing trend of sustainability within the industry necessitates energy-efficient solutions that meet both regulatory standards and customer expectations. As businesses remain committed to reducing their carbon footprint, investments in advanced power systems that minimize environmental impact are at an all-time high.

The demand for such technologies has perpetuated increased competition and investment in research and development, further solidifying the industry's growth trajectory. As a result, companies focusing on leveraging technology and innovative practices are likely to thrive in this dynamic market.

The Rationale Behind the Deal

Graham Partners recognized the significant potential within the emergency power solutions technology arena early on, leading to its acquisition of Myers EPS in 2018 outside a competitive bidding process. The firm’s investment thesis was anchored in the belief that Myers EPS could effectively transition the market from conventional battery backups to advanced inverter solutions, addressing the evolving demands of emergency lighting applications.

Through active collaboration and strategic initiatives, Graham has propelled Myers EPS to strengthen its market position, enhancing its innovation capability and expanding product offerings. This strategic alignment with market trends has driven substantial growth, with around 130% EBITDA growth reported since the acquisition, reflecting the firm’s successful investment strategy.

Information About the Investor

Graham Partners is a private investment firm dedicated to investing in technology-driven advanced manufacturing companies. With a focus on sectors that demonstrate high growth prospects, the firm has a solid track record of identifying niche markets and partnering with management teams to enhance operational capabilities, drive innovation, and unlock value. Graham's approach emphasizes active involvement, providing not only financial resources but also strategic guidance to foster sustainable growth.

The firm's investment philosophy centers around leveraging macro trends and technological advancements to capitalize on emerging opportunities. This extensive industry knowledge and operational expertise have positioned Graham Partners as a trusted partner for businesses looking to scale and innovate in competitive landscapes.

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Dealert views this transaction as a strategically sound investment opportunity for both Graham Partners and Myers EPS. The firm’s ability to identify and nurture high-growth niches such as emergency power solutions highlights its forward-thinking investment approach. Graham's substantial experience in supporting technological advancements will likely enhance Myers EPS’s capacity to innovate further and address emerging market demands.

The partnership with Kohlberg & Company as a lead financial sponsor brings additional resources and expertise, further strengthening Myers EPS’s potential for continued growth. Such collaborations are often critical in facilitating larger market penetration and enhancing competitive advantage.

Moreover, the ongoing trend towards smart technologies aligns well with the capabilities of Myers EPS, which positions the company to capitalize on the increasing market shifts towards integrated emergency power solutions. Given Graham Partners’ demonstrated success in steering Myers EPS through periods of growth—including navigating challenges presented by the COVID-19 pandemic—the firm likely possesses the expertise necessary to execute and optimize future strategies effectively.

In conclusion, this deal signals a promising trajectory for Myers EPS and its stakeholders, underpinned by Graham’s proven operational support and investment acumen. The continued focus on innovation and strategic collaboration indicates that Myers EPS is well-positioned to thrive within the burgeoning landscape of emergency power solutions.

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