"They really like the company, the team and the market that it was in," David Kennedy, a director at Harris Williams & Co., a middle market investment bank that advised BHC on the deal, told Security Systems News.
added, "I think there's a lot that Behrman
thinks they can do with [BECO], by maybe doing some additional acquisitions to make the company even larger."
from another PE firm, Freeman Spogli & Co.
, to which Behrman
had sold the company in 2010, after owning it for 12 years.
The repurchase deal closed Aug. 29 and the sale price and terms of the deal are not being disclosed, Kennedy
described the transaction as "a good deal," adding, "I think it will be very beneficial for the customer base and for the company as a whole."
that it's unusual that a PE firm buys back a company it previously owned.
"It's not too often where that happens," Kennedy
"A lot of times, as companies grow, they go to larger private equity funds."
did grow during the past four years it was owned by Freeman Spogli
said, "but it's still in the size range that fits for [Behrman], so it ended up working out."
Owning a company that length of time also is unusual for a PE firm, which more typically sells after about four years, like Freeman Spogli
did, according to Kennedy
"With private equity funds, they do sort of have a limited amount of time for owning companies before they have to return money to their limited partners," Kennedy
"And so part of the dynamic of the original sale back in 2010 was just driven by that: It was sort of time for [Behrman] to sell [BECO]."
Harris Williams & Co.
, whose U.S. headquarters are in Richmond, Va., advised BECO
on both the 2010 deal and this one.
"We know the company pretty well by now," Kennedy
continued interest in BECO
, "says that if you know [BECO], it's a great team that you want to get behind and back."
sells directly to installers, Kennedy
From the installers' perspective, he
said, "There shouldn't be any change at all, just because the ownership changed.
It will be the same business as usual.
In fact, installers could benefit because there "could be additional product opportunities" in the future.
Harris, Williams & Co.'s
Specialty Distribution Group led the transaction.
In addition to Kennedy
, the group included Bob Baltimore, Derek Lewis, and Marshall Croft.