Fluid and material conveyance solutions distributor ERIKS North America announced Jan. 11 its acquisition of DeeTag Ltd., a manufacturer and distributor of hydraulic and industrial hose assemblies. Financial terms of the transaction were not disclosed.
MDM’s M&A Virtual Summit, to be held Feb. 21-22, has something to offer for any distributor on the dealmaking spectrum. We’ll cover the current state of M&A; how to maximize valuation; integration do’s and don’ts; ESOPs; the culture side of the M&A process; and more. Get details and register here.
Dean and Lorna Gordon founded DeeTag in 1982 and have owned and operated the company since. DeeTag has two locations just outside of Toronto in London and Brampton, Ontario, as well as a facility in Conover, North Carolina. DeeTag manufactures hydraulic hose and fluid power connections, servicing markets such as the automobile, agriculture and food service industries.
“The combination of our companies provides the opportunity to accelerate the growth they have already accomplished,” ERIKS North America CEO Jeff Crane said. “Their locations provide geographic expansion of our footprint and key capabilities as it relates to serving hydraulic OEM customers. The existing ENA footprint can serve as a way for us to support their growth as we seek to extend in markets that DeeTag could not serve on their own.”
“We began reviewing our strategic alternatives several months ago with a goal of finding the right long-term partner for the next stage of DeeTag’s growth,” DeeTag president Dean Gordon said. “It became clear to us that the ERIKS team was the right organization with the right resources, culture, and strategy to partner with us. We are excited to be a part of the ERIKS North America organization and we look forward to working with Jeff and his team as we continue to build this great company.”
Pittsburgh-based ERIKS — which ranked No. 4 in MDM’s 2022 Top Hose/Accessories Distributor list — also hired a new CHRO in November and a new CFO in December.
See MDM’s Investment Bank Directory for a rundown of the key investment banks and advisory firms in the distribution sector.