Praesidian Capital Portfolio Company, Reel Power, Announces Strategic Acquisition of Downstream Extrusion Equipment from Novatec

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Sep 11, 2024, 08:33 ET

OKLAHOMA CITY, Sept. 11, 2024 /PRNewswire/ -- Praesidian Capital, which made a strategic equity investment in Reel Power in November 2023, is pleased to announce that Reel Power has acquired Novatec Inc.'s downstream equipment products for extrusion lines. Novatec, the largest U.S.-based manufacturer of leading drying and conveying equipment, agreed to divest its downstream product line as part of its strategy to concentrate on core upstream solutions. Praesidian Capital, a private equity firm headquartered in Oklahoma City with offices in New York and London, has been investing in privately held businesses for the past 20+ years, specializing in companies with $2 – $10 million of EBITDA across various industries.

The acquisition of these downstream products is a strong fit for Reel Power, a recognized leader in precision reeling, coiling, and spooling solutions for several markets. This acquisition allows Reel Power Industrial, Inc., to provide a turn-key downstream package to customers, one that increases the automation offering for improved productivity.

With the addition of Novatec's downstream products—including pullers, cutters, saws, cooling and vacuum tanks—Reel Power expands its existing portfolio, enabling the company to deliver a full-suite of turnkey downstream solutions.

Jason Drattell, Praesidian Founder said, "We are thrilled with Reel Power's recent acquisition, which enhances the company's ability to serve key markets with comprehensive downstream offerings."

About Reel Power

Reel Power designs and builds standard & custom reeling and coiling equipment, delivering innovative, lowest total life-cost, flexible material handling solutions. The company is committed to reducing client's overall business risk and improving their profitability by providing "World Class" Equipment, Engineering & Processing solutions for flexible materials to distribution manufacturing environments. The company offers processing solutions and complete field service & consulting.

Reel Power Industrial is a division of Reel Power International, a developer and builder of proprietary equipment for the Marine & Energy Industry and Industrial Business, owning and operating more than 200,000 square feet of custom manufacturing facilities.
For more information, visit https://reelpower.com/.

About Praesidian Capital

Praesidian Capital is an innovative private equity firm focused on control investments in private lower middle market businesses in the United States, specializing in companies with $2 – $10 million of EBITDA across various industries including consumer products, business services, niche manufacturers, family entertainment and healthcare. For more information, visit www.praesidian.com.

To discuss prospective investment opportunities please contact:
Jason Drattell, Founder – [email protected], (212) 520-2620
Tom Duffy, Partner – [email protected], (212) 520-2617

Media Contact:
Linda Dignelli
212-520-2619
[email protected]

SOURCE Praesidian Capital