Mission Critical Electronics LLC is powering up following a super-charged acquisition under Newport Beach-based private equity firm Windjammer Capital Investors.
The Huntington Beach-based firm makes electronic power products, such as battery chargers and power inverters, which helps convert DC power—like that generated by a car battery—into AC power or the electricity you access through a wall outlet.
Its products are used in a wide range of applications such as commercial marine vessels, emergency vehicles and telecommunications.
The company has a line of more than 2,000 products, which operate under brand names Kussmaul Electronics, Newmar Power, ASEA Power Systems, Power Products and American Battery Charging.
This month the company acquired a similar electronic power manufacturing firm—Xantrex Technology Inc.—with a specialty of serving transportation-related businesses.
Burnaby, British Columbia-based Xantrex develops and manufactures advanced power electronic products and systems, such as AC power products often placed in RVs and heavy duty trucks.
The company’s U.S. operations are based in Elkhart, Ind., the epicenter of the country’s recreational vehicle manufacturing industry.
Financial terms of the deal were not immediately disclosed; the Business Journal estimates the acquisition to be in the $100 million range based on previously reported financial data involving Xantrex.
Xantrex last changed hands in 2008 for about $500 million, when it was acquired by France-based Schneider Electric. That deal included a few substantial business lines that were not bought by Mission Critical.
One-Stop Shop
Mission Critical executives believe the deal will make the power electronics company a one-stop shop for large transportation clients, such as Swedish company The Volvo Group and Elkhart-based recreational vehicle manufacturer Forest River Inc.
“We had fire, police, EMS, marine and work trucks, but now we get access to RV and heavy duty trucks because that’s what Xantrex does,” Mission Critical’s Vehicle Power Segment President Dale Tompkins told the Business Journal.
“We’re [also] able to take some of Mission Critical’s products and sell them into the RV space as well. It’s a lot more value for our customers, both original equipment manufacturers and distributors, as well as for our suppliers and business partners.”
The acquisition will boost the company’s employee count to 170.
Tompkins, who joined the firm six months ago, said the company intends to keep Xantrex intact with no plans to lay off employees.
Xantrex Vice President and General Manager Richard Gaudet said in a statement that he was excited about the opportunity “to accelerate our combined growth, the career possibilities for employees and our shared top priority of satisfying our customers.”
2016 Investment
The deal for Xantrex marks the first acquisition made by Mission Critical since it was purchased in 2016 by Windjammer.
Mission Critical, previously based in Santa Ana, was the result of a merger between ROI Development Corp., operating as Newmar Power, and Kussmaul Electronics.
Dallas-based private equity firm Evolve Capital Ltd. acquired both companies in separate transactions and merged the two electronic firms by 2011.
It then sold off the business to Windjammer for an undisclosed sum.
At the time, Mission Critical was reported to be the fifth investment in Windjammer’s $726 million Senior Equity Fund IV.
Windjammer typically invests $40 million to $150 million in niche middle-market businesses that generate more than $8 million of operating earnings.
Tompkins notes that the Xantrex deal is also the company’s first under a new management team.
Chief Executive Kevin Moschetti took over the reins last year from Alan Pemberton.
Moschetti has more than 20 years of experience in aerospace and technology sectors at companies that include Esterline Technologies Corp. (NYSE: ESL) and The Boeing Co. (NYSE: BA).
Tompkins said Windjammer’s backing will help accelerate the company’s growth plans, beyond the latest acquisition.
“We have aggressive growth plans going forward and that includes both acquisitions as well as organic and new product development, channel expansion and geographic expansion,” he said. “We intend to be quite active.”
