01.07.2013

Private Equity buy-in at Trojan

Charlesbank Capital Partners has made a substantial equity investment in Trojan Battery Company, buying a stake from the Godber family which has owned the business since founding it in 1925.

The company’s management has also made a significant investment, and the founding family will also retain a sizeable holding.

While the percentage of the business acquired by Charlesbank has not been disclosed the announcement suggests that it will hold a controlling interest. The transaction was funded with both equity and debt, with GE Antares Capital provided the debt portion of the financing.

Santa Fe Springs, California based Trojan is one of the leading suppliers of deep cycle batteries for aerial lifts and golf buggies, recreational vehicle and floor sweepers.

Trojan chief executive Jeff Elder said: “Trojan sees diverse opportunities to continue to grow our business and increase market share with Charlesbank as our new partner. We take pride in cultivating strong relationships with our customers and we are pleased to have raised capital that will help Trojan expand and meet its full potential. Charlesbank’s experienced team will be a valuable strategic resource as we move ahead in establishing our U.S.-based manufacturing facility for AGM batteries and our continued global expansion.”

Ryan Carroll, managing director of Charlesbank added: “We are very pleased to partner with this talented management team to help continue to grow the business and build on the 88 year legacy of the Godber family. Trojan has a well-respected brand in the battery industry and a reputation for high quality and technology leadership. With this excellent foundation we believe the business is well-developed to grow in its existing markets as well as in newer markets such as renewable energy, transportation and back-up power.”

Rick Godber said: “The Godber family is dedicated to playing a significant on-going role in the evolution of the Trojan brand and company in conjunction with Charlesbank. In support of Trojan’s tremendous market share growth in recent years, the company is looking forward to meeting the strong unmet demand for quality U.S.-made deep-cycle batteries, which will drive Trojan’s pursuit of new business opportunities worldwide.”

Boston based Charlesbank has a diverse range of investments in the fields of Communications, Consumer products & services, Education, Energy services, Financial services, Healthcare and Industrial products & services. Some well-known brands it owns or has owned include Del Taco and Sealy beds.