High Road Capital’s Acquisition of JHFOSTER Focused on Growth
High Road Capital Partners Acquires JHFOSTER Minnesota
NEW YORK, June 4, 2019 – High Road Capital Partners announced today that it has completed the acquisition of JHFOSTER Minnesota, Inc., marking the tenth platform acquisition for High Road Capital Partners Fund II.
Founded in 1938, JHFOSTER Minnesota (JHFOSTER) is a leading value-added distributor of motion control parts and accessories, compressed air systems, collaborative robots, industrial robotics, and electrical automation products to manufacturers in the Upper Midwest. The company is headquartered in Eagan, Minnesota.
JHFOSTER partners with premium suppliers to provide a wide product offering to customers across a diverse array of end markets, including industrial, food and beverage, healthcare, and consumer goods. The company employs highly skilled, certified technical service teams to provide installation, integration, maintenance and repair services.
“The acquisition of this differentiated regional market leader builds upon our strong experience in value-added distribution and advanced manufacturing,” said Ben Schnakenberg, Partner, High Road Capital Partners. “With its extensive inventory and sought-after design, integration and technical expertise, JHFOSTER is well positioned to capitalize on small and mid-sized manufacturers’ flourishing interest and investment in automated manufacturing systems.”
“We are excited to partner with JHFOSTER, which has the potential to achieve significant growth, both organically and through strategic add-on acquisitions, and support the company in expanding its geographic presence and broadening its product and service offerings,” Schnakenberg added.
Jan Hawkins, President of JHFOSTER said, “High Road has significant expertise with industrial distribution businesses and a proven track record of building market leaders. Their investment will allow us to expand the growth of our business while continuing to provide an outstanding level of service.”
Ms. Hawkins will continue to lead the company post-closing and will join the Company’s board of directors. Ms. Hawkins and members of JHFOSTER’s senior management team participated in the transaction alongside High Road.
High Road’s acquisition of JHFOSTER Minnesota closed on May 24, 2019. Mr. Schnakenberg led the transaction for High Road and was assisted by Nick Martino, Operating Partner; Eojin Lee, Vice President; Tom Cassidy, Senior Associate; and Anthony Tripodoro, Associate.
Madison Capital Funding provided financing for the transaction. Jones Day provided legal counsel to High Road. BMO Capital Markets advised the sellers on the transaction. Transaction consideration was not disclosed.
High Road Capital Partners has completed 52 transactions – 20 platform investments, 25 add-on acquisitions and seven exits – since its founding in 2007.
For further information, please contact Ben Schnakenberg of High Road Capital Partners at (212) 554-3269.
High Road Capital Partners
High Road Capital Partners is a private equity firm focused on smaller middle market transactions. High Road was formed in 2007 and has raised over $470 million of committed capital since inception. High Road focuses on niche-leading companies with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. Once acquired, High Road works in partnership with management to take the companies to the next level through a combination of organic growth initiatives and add-on acquisitions.
Founded in 1938, JHFOSTER Minnesota (JHFOSTER) is a leading value added distributor of motion control parts and accessories, compressed air systems, collaborative robots, industrial robotics, and electrical automation products. JHFOSTER customizes products and solutions to automate manufacturing applications for companies in Minnesota, Wisconsin, North Dakota, South Dakota and Iowa. The company is headquartered in Eagan, Minnesota, with an advanced robotics design and training facility and UL 508A-certified control panel shop also in Eagan, a facility in Fargo, North Dakota, and a fully-equipped team of mobile service technicians throughout the five-state area.