Burgaflex North America, a leading manufacturer of coolant system tube and hose assemblies serving the heavy truck, agricultural and off-road markets, announces the acquisition of Burgaflex GmbH, a Germany-based supplier of tube and hose assemblies for the heavy truck, bus, construction and agricultural equipment industries.
Founded in 2001, Burgaflex GmbH currently employs 45 people and anticipates the company growing to more than 60 employees over the next five years as a result of this transaction. The company operates out of its 25,000-square-foot facility and predominantly serves the aftermarket.
“Burgaflex NA and Burgaflex GmbH were both previously part of the Burgaflex Group, which disbanded in 2010. Now, five years later, the companies are reunited and stronger than ever,” says David Kennedy, CEO of Burgaflex NA. “Our team has a strong relationship with Burgaflex GmbH, which will make for a smooth transition and integration of the two businesses.”
The transaction marks the first international acquisition for Burgaflex NA, and will provide it with a key European location to help better service its global OEM customer base.
“In approaching this acquisition, we factored in the strategic importance of international business,” says Jeremy Sheppard, President of Burgaflex NA. “We are confident that we can aggressively grow the business and improve the profitability through an increased focus on both operational efficiency and systems integration.”
Blackford Capital, a Grand Rapids, MI-based private equity firm who partnered with Burgaflex NA in July of 2014, helped facilitate the acquisition. Both parties are excited about the company’s anticipated growth and international exposure.
“International expansion is a fundamental component of the Burgaflex NA growth strategy, and we expect to see continued synergies as the two companies begin to fully integrate,” says Martin Stein, Managing Director of Blackford Capital and Chairman of Burgaflex NA. “We are eager to move forward with the acquisition, and believe this transaction will help strengthen the business and better serve our customers.”