Chicago private equity firm Prospect Partners announced it has completed the sale of Wisconsin-based Velvac Holdings Inc. to The Eastern Company for US$ 39.5 million.
Velvac designs and manufactures proprietary vision technology for commercial vehicles at a production facility located in Reynosa, Tamaulipas.
Founded in 1934, Velvac products are used in heavy and medium duty trucks, motorhomes and buses. It is a Tier 1 supplier of mirrors and camera-enabled vision systems, which make up about two-thirds of its revenue.
It also sells aftermarket components and vision systems to OEM dealers, OEM parts distribution centers and other aftermarket channels. Velvac sells about 45,000 camera-enabled units each year. Its 2016 revenue totaled US$ 60.3 million.
Velvac recently introduced its Road-iQ 360-degree view camera, recording and communication system, and announced TrailerLink, a new patent-pending solution that supports trailer-to-tractor video and data communications.
The company has 275 employees, about 90 of whom are based at the headquarters and distribution facility in Wisconsin. Another 174 employees are based in Reynosa, where the products are manufactured, said John Sullivan, chief financial officer of The Eastern Company.
Based in Connecticut, The Eastern Company manufactures custom-engineered components and products, such as industrial hardware, security products and metal castings.
It has 995 employees at 13 facilities spread among the U.S., Canada, Mexico, Taiwan and China. Because it makes such a wide array of parts, Eastern is able to quickly adapt to changes in several markets, including heavy and medium trucks, mining, commercial laundry, electronics, military and industrials.
Velvac will operate as an independent subsidiary of Eastern. Its management and employees are expected to remain in place.