The private equity firm Huron Capital Partners
, headquartered in Detroit, and the equipment company Bandit Industries
, Remus, Michigan, have entered into a letter of intent to recapitalize Bandit as a private company and provide resources and capital to reinforce the equipment company’s growth while accelerating its global growth strategy.
Bandit Industries designs, manufactures, distributes and services hand-fed and whole tree wood chippers, stump grinders, forestry mowers, the company’s Beast recycling machines and other specialty wood and waste processing equipment. The company supplies equipment to the recycling, renewable energy, logging, forestry, tree care and land-clearing industries through a network of more than 160 locations.
Under the new structure, Jerry Morey will continue to run Bandit as president and CEO. Following the closing of the deal to take Bandit private, the company says a CEO succession plan will be initiated to recruit and train a replacement for the next phase of the company’s growth.
Mike Morey Sr. and Dianne Morey also will remain with the company in consulting roles. Bandit will be co-owned by Jerry Morey, Mike Morey, Dianne Morey and Huron Capital. The investment is expected to close in early fall 2014.
“When we announced last year that we were looking at companies for a potential sale or merger of Bandit, we were adamant that it had to be the right fit for our company, our community, our dealer network, and most importantly, our employees,” says Jerry Morey. “We were only interested in partnering with an organization that would respect and be committed to our company culture, from our employees in Michigan to our dealers operating all around the world.
Morey continues, “Huron Capital has a long history of growing companies while maintaining their independent operations and unique company culture, and that was a significant factor in our decision to partner with the firm. It also feels good to be working with another Michigan-based company that understands our challenges and shares our hometown pride. We are very much looking forward to the future for both Bandit and our mid-Michigan community.”
The company will remain at its current 280,000-square-foot world headquarters. All existing operations, including the workforce, management teams and distribution and dealer network will remain in place.
“Bandit’s history as an independent, family-run business is an important criteria for us,” says Mike Beauregard, senior partner at Huron Capital. “Our investment in the business will preserve the legacy and culture of this business while continuing to expand globally under the Bandit brand. The business will remain a private, Michigan-based company funded with Michigan-based capital and employing Michigan-based people.”