Brazos Private Equity Partners Announces Two Acquisitions for Portfolio Company Blackhawk Industrial Distribution

April 9, 2015 | By Business Wire News

DALLAS

Brazos Private Equity Partners, LLC, a leading Dallas-based private investment firm, announced today that its portfolio company BlackHawk Industrial Distribution (“BlackHawk”) has successfully completed the acquisitions of Packaging, Inc. and Pioneer Tool Supply.

BlackHawk, headquartered in Tulsa, Oklahoma, is a top-30 distributor in the North American industrial supply market. BlackHawk serves more than 6,000 customers through a direct salesforce supported by a network of 25 sales locations, through integrated service models and through a manufacturing services division. The company focuses primarily on technical, recurring and consumable segments within industrial distribution, with an emphasis on the cutting tools and abrasives product category. The company was formed through a Brazos initiative with leading industry executive Bill Scheller to execute a buy-and-build strategy.

Packaging, Inc., headquartered in Eden Prairie, Minnesota, is a leading provider of packaging and fastening supplies. Founded in 1957, Packaging serves a loyal and long-standing customer base in the Midwest region through a direct salesforce. The company focuses on technical, value-added “outside the box” and “inside the box” packaging solutions, as well as on niche fastening products. The Packaging management team has continued to run the business as a segment of BlackHawk and is leading efforts to grow the packaging and fastening product categories within the broader BlackHawk customer base.

Pioneer Tool Supply, headquartered in Agawam, Massachusetts, is a distributor of metalworking and cutting tools in the New England marketplace, with locations in Massachusetts, Connecticut, New Hampshire, and Maine. Founded in 1948, Pioneer provides clients with the latest technologies, technical knowledge and superior customer service to increase manufacturing efficiency and improve operations. In addition to its core distribution services, the company offers precision grinding for resharpening and reconditioning tooling and vendor managed inventory to evaluate stock levels. Pioneer’s management team will continue to lead the business in new senior leadership roles within BlackHawk, guiding efforts to grow BlackHawk’s presence in New England and efforts to incorporate several of Pioneer’s leading service and technology initiatives across BlackHawk.

“We are excited to help BlackHawk complete these two highly complementary acquisitions,” said Randall Fojtasek, Co-Founding Partner and Co-CEO of Brazos and Chairman of BlackHawk. “BlackHawk’s successful growth is a great example of Brazos’ buy-and-build strategy. Since Brazos invested in BlackHawk in 2010, the company has made twelve acquisitions and has grown significantly, gained market share and consolidated its leadership in key product categories in the broader industrial distribution market.”

“Brazos has been a terrific sponsor for BlackHawk, guiding our organic and acquisitive growth and helping us build a great distribution platform,” said Bill Scheller, BlackHawk’s CEO and President. “We look forward to continuing to grow and enhance the company with Brazos’ assistance and with the support of our employees, customers, vendors and financing partners.”

About BlackHawk
BlackHawk is headquartered in Tulsa, Oklahoma, and distributes the highest quality industrial products and equipment to customers throughout the U.S. and Mexico. The company has grown rapidly and according to leading industry sources has become one of the top 30 largest industrial distributors. With its “Big Enough to Serve, But Small Enough to Care” positioning with customers, BlackHawk has also become one of the category leaders in cutting tool and abrasives in the U.S. For more information on BlackHawk, visit www.BlackHawkID.com.

About Brazos Private Equity Partners, LLC
Brazos Private Equity Partners is a Dallas-based private equity firm that has managed investment funds with approximately $1.4 billion of equity capital since inception. Brazos focuses on investments in leading middle-market consumer, healthcare, commercial & industrial, and business services companies, and supports outstanding management teams and/or owners of closely-held businesses to maximize growth and shareholder value. Brazos has been one of the most active middle-market private equity investment firms, having completed in excess of 80 transactions over the past decade. For additional information about Brazos, please visit the firm’s website at www.brazospartners.com.