Schenck M&A Solutions and NEXT Electric, LLC announced that NEXT Electric, based in Milwaukee, Wis., has been acquired by IES Holdings, Inc., a holding company that owns and manages diverse operating subsidiaries. The principals of Schenck M&A Solutions advised NEXT Electric on this transaction.
Waukesha-based NEXT Electric is one of OwnersEdge’s four portfolio companies.
“OwnersEdge sold NEXT Electric so it could further diversify its portfolio outside the construction industry,” said Lisa Reardon, chief executive officer and chairman of OwnersEdge.
OwnersEdge is a 100 percent employee stock ownership plan company. A “substantial” part of the sale proceeds were paid out to NEXT Electric’s ESOP employees, who had the option to roll the funds over into another qualified retirement plan or take a payout, Reardon said.
The rest of the proceeds went to OwnersEdge, which plans to put them toward its next acquisition, she said. The company, which now has 275 employees at three portfolio companies, has reviewed more than 400 acquisition targets over the past 12 months.
“We continue to look for niche tech companies that their revenue streams are off-cycle with the other three affiliates,” Reardon said. “We’re very very active. Our ultimate goal is to have eight affiliate businesses.”
The principals of Schenck M&A represented NEXT Electric in this transaction, and is working with OwnersEdge to find other acquisition targets.
“We narrowed it down to a strong portfolio of suitors that fit our needs,” Reardon said. “We had tremendous interest in this organization because of the health and future success that this business brings to any buyer.”
About NEXT Electric, LLC
NEXT Electric, LLC is a Milwaukee-based electrical contractor specializing in the design, installation and maintenance of electrical systems for commercial, industrial, healthcare, water treatment and education end markets. For more information about NEXT Electric, please visit nextelectricinc.com.
About Schenck M&A Solutions
Schenck M&A Solutions, a division of Schenck SC, consists of a dedicated group of investment banking professionals providing M&A advisory services for business sales and divestitures, acquisitions, management buyouts and recapitalizations. The M&A team approaches transactions with creativity, a strong sense of urgency and the negotiation skills and deal expertise critical to complete transactions in the best interests of its clients. Schenck M&A Solutions is uniquely positioned having the dedicated M&A experience of a boutique investment bank backed by the breadth of knowledge and resources of a large accounting and advisory firm. For more information, visit schencksc.com/mergeradvisors.