Sussex-based manufacturer Bevco Engineering Co. has been acquired by New Berlin-based IEWC for an undisclosed price. The transaction closed on March 31. Bevco designs and builds electrical control systems and panels for the industrial, health care and electric vehicle markets. The company has approximately 100 employees. IEWC is a global distributor of electric wire, cable
Sussex-based manufacturer Bevco Engineering Co. has been acquired by New Berlin-based IEWCfor an undisclosed price. The transaction closed on March 31.
Bevco designs and builds electrical control systems and panels for the industrial, health care and electric vehicle markets. The company has approximately 100 employees.
IEWC is a global distributor of electric wire, cable and wire management products for industrial automation, commercial vehicles, telecom and renewable energies. The company employs approximately 780 people and is employee-owned.
[caption id="attachment_557022" align="alignleft" width="300"] Chris Shult, chief executive officer of Bevco Engineering Co.[/caption]
Both companies have been named in recent years as Future 50 companies, the BizTimes Media program recognizing the fastest-growing privately held businesses in southeastern Wisconsin.
Chris Shult, CEO of Bevco Engineering Co., said it was time to look for a buyer who could help support his goal of more than doubling the company.
“We’ve been growing at about 20% a year,” said Shult. “I want us to more than double before I retire and I’m (currently) 62.”
Bevco and IEWC had a relationship prior to the acquisition with IEWC being a customer of the firm. Years of trust and similar values meant the deal made “perfect sense,” Shult explained.
[caption id="attachment_595126" align="alignleft" width="300"] Mike Veum, President & CEO, IEWC[/caption]
"Our vision as a company is (examining) how we can simplify and accelerate our customers' and suppliers' businesses," said Mike Veum, president and CEO of IEWC. "Bevco brings us unique capabilities that we didn't have, in wire processing, kitting, engineering.... skills that really allow us to help our customer base in a different way."
The fact that Shult would be able to turn Bevco into an ESOP and hand the business over to his employees was another added bonus to the deal, he said.
Bevco’s employees have already become a part of IEWC’s ESOP structure and are earning credit for the time they’ve been working at Bevco.
"It isn't just about the owner cashing out or getting out of the business, if you will. It's about what kind of legacy you leave for your employees," said Shult.
Both companies are seeing noteworthy growth primarily driven by the recent boom in data center construction and increasing demand within the medical industry. IEWC is also seeing “significant growth” in the telecommunications space.
"We acquired a fiber optic company assembly business about four years ago and that business is absolutely taking off this year," said Veum, referencing IEWC's acquisition of Detroit-based Cablcon in 2021.
Following the acquisition of Bevco, IEWC has created a third business segment focused on controls that will be led by Shult and the Bevco team. This is in addition to IEWC’s OEM business and the company’s telecommunications business.
Next steps for Bevco will involve targeting competitors for acquisition. The company will also leverage IEWC’s 24 locations across the globe to grow organically. Neither company is deterred by ongoing economic uncertainty, their leaders said.
"We really take the long view on these types of decisions," said Veum. "We don't react to economic quarters or uncertainty; we take the longer view and it really affords us the ability to make the right decision."
Milwaukee-based investment bank TKO Miller served as advisor to Bevco throughout the acquisition process.
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