Gryphon Investors-Backed Thermal Technology Distribution Solutions Acquires Proheat, a Premier Distributor of Industrial Thermal Management Products

News provided by

Jan 23, 2024, 07:00 ET

CINCINNATI, Jan. 23, 2024 /PRNewswire/ -- Thermal Technology Distribution Solutions ("TTDS"), a platform for the distribution of industrial temperature management and related products, today announced it has acquired Proheat Inc., a distributor of heaters, sensors, controls, and comprehensive technical support to manufacturers. Terms of the transaction were not disclosed.

Based in La Grange, KY, Proheat's experienced management team, including President and CEO Steven W. Button, will remain with the company and maintain a significant equity stake. Mr. Button commented, "We are honored to be a core early member of the TTDS platform as it rapidly scales. We appreciate the financial and operational support from TTDS and Gryphon Investors and look forward to a productive partnership that upholds the quality and service our suppliers and customers have come to expect."

This is the second investment for TTDS, established in September 2023 by middle-market private equity firm Gryphon Investors through Gryphon's Heritage Fund, the firm's small-cap fund strategy. TTDS's initial investment was Big Chief, Inc., a leading distributor of electric process heating and temperature control products for the industrial market.

Jeff Collier, CEO of TTDS, said, "We are excited to welcome Steven and Proheat to TTDS. They are an important addition to our growing team of leading distributors of thermal management solutions. Proheat enhances our ability to be a value-added partner to suppliers, while increasing the breadth of products and services for our customers."

"We partner with outstanding companies who offer high quality solutions that meet the unique challenges of our customers," said Jeff Pembroke, Operating Partner of Gryphon's Heritage Fund. "In this highly fragmented market, we are actively pursuing multiple organic and acquisition opportunities that leverage Gryphon's proven experience with value-added distribution businesses."

Gryphon was advised by legal counsel Kirkland & Ellis LLP. Wyatt, Tarrant & Combs LLP served as legal counsel to Proheat.

About Thermal Technology Distribution Solutions
TTDS was established in 2023 by Gryphon Investors, a leading middle-market private equity firm, as a platform for the distribution of industrial temperature management and related products, including electric process heating, sensors, and controls. TTDS is the parent company of Big Chief Inc. and Proheat.

About Gryphon Investors
Gryphon Investors (www.gryphoninvestors.com) is a leading middle-market private equity firm focused on profitably-growing and competitively-advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, and Software sectors. With approximately $9 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and executives to accelerate the building of leading companies and generate enduring value through its integrated deal and operations business model. Gryphon's highly-differentiated model integrates its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, human capital acquisition and development, treasury, finance, and accounting expertises. Gryphon's three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $350 million per portfolio company. The Junior Capital strategy targets investments in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon's targeted investment sectors.