Calder Capital, LLC is electrified to announce that 75+-year-old Strain Electric Company of Wyoming, Michigan has been acquired by Power VAC, LLC of Novi, Michigan.
Founded in 1947 by Lester Strain, Strain Electric is a diversified electrical utility contractor specializing in industrial construction, outdoor traffic signals, and underground electrical work. Todd Strain, the third-generation owner of Strain Electric, started working part-time when he was 15 years old, but he has been working at Strain Electric continuously since 1988. He’s been the sole owner since 2007. After having been incredibly hands-on in operations for a long time, Todd and his wife Debbie look forward to gradually reducing their day-to-day involvement in the business over the next two years.
Strain Electric was acquired by Power VAC, LLC, a hydro excavation service provider in Southeast Michigan. The acquisition was a strategic one for Power VAC, which has not yet had an electrical services presence in its area and also had previously not extended its brand into the west side of the state. Power VAC was supported by two Private Equity firms–Michigan-based Peninsula Capital Partners and Connecticut-based Pillsman Partners.
“Our team at Power VAC, LLC couldn’t be happier to join forces with the Strain Electric team,” said Karl LaPeer, Partner at Detroit-based private equity firm Peninsula Capital Partners. “In August 2019, Peninsula and Pillsman Partners completed a recapitalization of Power VAC, LLC in partnership with its founder and CEO, David Janks, with Strain becoming the fourth add-on acquisition into the commercial, industrial, transportation and municipal services platform in less than 2 ½ years.” Edwin Burke, Managing Partner of Pillsman said, “We are excited to help Todd and Debbie Strain continue the Strain family’s 75-year legacy of providing outstanding electrical infrastructure contractor services, and look forward to expanding Power VAC’s hydro-excavation and trenchless rehabilitation services to the Western Michigan market.”
Garrett Monroe of Calder Capital served as the lead Mergers and Acquisitions Advisor to Strain Electric.
“The acquisition of Strain Electric will be a great fit for Power VAC, allowing them to expand their geographical scope and expand their service offerings,” commented Garrett. “Power VAC, Peninsula Capital Partners, and Pillsman Partners all have fantastic reputations, and I feel confident they will continue to grow the Company that Todd’s family built over the last 75 years. It’s a pleasure to know that this long-standing family establishment will be in such dedicated hands.”
“After one introductory lunch with Managing Partner, Max Friar, I knew Calder Capital would be the firm to help us reach our goals of getting our company into the hands of a new owner that would continue the legacy that we have built up over the years,” said Todd Strain, about the process. “Calder has been a pleasure to work with, and Garrett has been a major player in getting this deal done on time and before the new year. I was continually impressed by his professionalism and can-do attitude! We will have no problem recommending Calder Capital to anyone looking to sell their business! Thanks again for everyone’s help.”
“The closing of Strain Electric marked a nice round 40 transactions for Calder in 2021, matching our record year of 2020,” commented Max Friar, Managing Partner of Calder Capital. “Leave it to Garrett to pull us across the finish line, and congratulations to him on breaking Calder’s personal closing and production records. What an amazing year for Garrett!”
Calder Capital, LLC served as the exclusive Mergers and Acquisitions Advisor to Strain Electric Company.
About Strain Electric Company
Strain Electric was founded in 1947 by Lester Strain, who was at that time the Chief Electrical Inspector for the City of Grand Rapids. Lester’s sons Craig and Lee joined the Company in the 1950s, ultimately taking it over until it was passed to third-generation owner Todd Strain. Strain Electric is a diversified electrical and utility contractor specializing in commercial and industrial construction, outdoor traffic signals, and underground electrical work. The Company is a leading Michigan Department of Transportation (MDOT) and municipal electrical contractor located out of West Michigan.
About Power VAC, LLC
Located in Novi, Michigan, Power VAC provides professional hydro excavation services to support area businesses. With over 25 years of experience, Power VAC experts are ready to complete hydro excavation for all industries, including plumbing, installations, construction, and landscaping. Instead of manual or mechanical digging methods, Power VAC’s hydro excavators use water to break up soil, which virtually eliminates any risk of underground utility damage. Power VAC’s, ServicePro, and Able Grease Trap Service are unified companies that operate together to provide a one-stop source for maintenance to provide installation, service, and repair for all building systems.
About Peninsula Capital Partners
Peninsula Capital Partners is an investment company specializing in providing junior capital, including subordinated debt, preferred stock, or common stock, either as a minority or control investor, to superior middle-market companies. Established in 1995, Peninsula Capital Partners is now owned entirely by its founders and senior management team members. It is headquartered in Detroit, Michigan.
About Pillsman Partners
Pillsman Partners, LLC is a private investment firm that specializes in direct investments in established, small to lower-middle market businesses. The Pillsman team prides themselves on investing where they have knowledge, while remaining flexible and opportunistic. Located in Greenwich, Connecticut, Pillsman has a world-class team that combines nearly 50 years of finance, M&A, operations, and private equity experience.
