Kinderhook Industries Expands Growth with Acquisition of Advanced Digital Cable

In a significant business move, Kinderhook Industries, LLC has announced its acquisition of Advanced Digital Cable Inc. (ADC), marking an important step in Kinderhook's strategy to enhance its portfolio in the wire and cable market. This acquisition, which is Kinderhook's eighth investment in the wire and cable sector, positions ADC as a vital addition to the firm’s efforts to harness growth through targeted investments.

Exploring Kinderhook Industries

Founded in 2003, Kinderhook Industries is known for its strong investment philosophy that targets middle-market businesses in specialized niches, including healthcare services and light manufacturing. The firm has raised a substantial $8.5 billion in committed capital and conducted over 500 investments and follow-on acquisitions since its inception.

Background on Advanced Digital Cable

Headquartered in Hayesville, Georgia, Advanced Digital Cable, established by the Payne family in 1997, has garnered a reputation for superior quality and reliable service within the wire and cable industry. The company offers a diverse range of products focused on low-voltage copper wire applications, serving critical sectors including data centers, renewable energy, and industrial automation. ADC is known for its swift response times and a family-led ethos that prioritizes customer service.

Steve Payne, the founder of ADC, expressed pride in the company’s achievements and excitement for this new chapter with Kinderhook, emphasizing their commitment to maintaining product quality and exceptional service.

Leadership Changes and Future Directions

To lead ADC into this new phase, Kinderhook has appointed Kurt Breischaft, an experienced executive from the wire and cable industry, as its Chief Executive Officer. Breischaft previously served as CEO of SDI La Farga Copperworks and brings with him a wealth of industry knowledge. He highlighted the potential for growth driven by electrification trends supporting ADC's mission to deliver premier products.

In line with this growth trajectory, Kinderhook has also introduced operating partners to ADC’s Board of Directors, aiming to reinforce governance and strategic direction. Paul Cifelli, Managing Director at Kinderhook, reiterated that ADC’s strong growth track record over nearly 30 years positions it well for future success in the sector.

Nate Druckenmiller, a Principal at Kinderhook, stated that the firm is eager to capitalize on ADC's legacy and expand into new markets and product categories through strategic mergers and acquisitions. This collaborative effort is aimed at not just maintaining ADC's existing customer relationships but also developing new avenues for growth, ensuring the company stays ahead in an evolving market landscape.

Conclusion

The acquisition of Advanced Digital Cable by Kinderhook signals a robust move towards fortifying their market position in the cable manufacturing sector. It reflects a commitment to enhance operational capabilities and customer service as they navigate through the expanding demands of various industries. As Kinderhook continues to invest in ADC, both companies appear poised for a promising future, leveraging combined expertise to maximize growth potential in the years ahead.