High Road Capital Partners Acquires JHFoster

Founded in 1938 John Henry Foster Minnesota is a leading industrial distributor in the Upper Midwest.

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High Road Capital Partners announces that it has completed the acquisition of John Henry Foster Minnesota, Inc., marking the 10th platform acquisition for High Road Capital Partners Fund II.                   

Founded in 1938, John Henry Foster Minnesota (JHFoster) is a leading value-added distributor of motion control parts and accessories, compressed air systems, collaborative robots, industrial robotics, and electrical automation products to manufacturers in the Upper Midwest. The company is headquartered in Eagan, Minnesota.

JHFoster partners with premium suppliers to provide a wide product offering to customers across a diverse array of end markets, including industrial, food and beverage, healthcare, and consumer goods. The company employs highly skilled, certified technical service teams to provide installation, integration, maintenance, and repair services.

“The acquisition of this differentiated regional market leader builds upon our strong experience in value-added distribution and advanced manufacturing,” says Ben Schnakenberg, partner at High Road Capital Partners. “With its extensive inventory and sought-after design, integration and technical expertise, JHFoster is well positioned to capitalize on small and mid-sized manufacturers’ flourishing interest and investment in automated manufacturing systems. We are excited to partner with JHFoster, which has the potential to achieve significant growth, both organically and through strategic add-on acquisitions, and support the company in expanding its geographic presence and broadening its product and service offerings."

“High Road has significant expertise with industrial distribution businesses and a proven track record of building market leaders," says Jan Hawkins, President of JHFoster. "Their investment will allow us to expand the growth of our business while continuing to provide an outstanding level of service.”

Hawkins will continue to lead the company post-closing and will join the company’s board of directors. Hawkins and members of JHFoster’s senior management team participated in the transaction alongside High Road.

High Road’s acquisition of John Henry Foster Minnesota closed on May 24, 2019. Schnakenberg led the transaction for High Road and was assisted by Nick Martino, operating partner; Eojin Lee, vice president; Tom Cassidy, senior associate; and Anthony Tripodoro, associate.

Madison Capital Funding provided financing for the transaction. Jones Day provided legal counsel to High Road. BMO Capital Markets advised the sellers on the transaction. Transaction consideration was not disclosed.

High Road Capital Partners has completed 52 transactions—20 platform investments, 25 add-on acquisitions and seven exits—since its founding in 2007.

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