MPE Partners acquires Pacific Power Group for platform company Motor-Services Hugo Stamp

MPE Partners has announced the acquisition of Pacific Power Group (PPG), a Vancouver, Washington-based provider of products, parts and maintenance for marine, energy, commercial and industrial equipment, as an add-on for its Motor-Services Hugo Stamp ( MSHS) portfolio company.

Financial terms of the deal were not disclosed.

Founded in 1958, PPG is described as a sales and service provider of new and remanufactured engines, marine power, power generation products and commercial trucks.

That makes it a complementary fit for MSHS, a third-party maintenance, repair and overhaul (MRO) services provider based in Fort Lauderdale, Florida.

MPE recapitalized and acquired that business in February 2021.

“We are thrilled to bring together PPG and MSHS to accelerate the growth opportunities of the merged businesses,” said MPE partner Joe Machado in a statement. “The combination expands each company’s technical talent base, geographic footprint, product offerings, MRO service capabilities and end-markets to better serve customers.”

“I am especially excited about how the scale of these firms together enables expanded recruiting and training, which allows us to broaden our technical services,” added PPG president Bill Mossey. “Through an expanded investment in this area, we will strive to become more capable and have greater capacity to solve our customers’ challenges and allow them to focus more on their businesses.”

MPE, which was founded in Cleveland and is co-headquartered in Boston, invests in lower-middle-market companies with $5 million to $20 million of EBITDA (earnings before interest, taxes, depreciation and amortization). It usually targets companies in high-value manufacturing as well as commercial and industrial services with transaction values ​​up to $250 million.

The firm closed MPE Partners III LP at its hard cap of $420 million in December, raising that money in six months without a placement agent.