Private equity firm FalconPoint invests over US$250 million to grow JENNMAR

FalconPoint Partners, a private equity firm focused on investing in North American middle market companies in the business services and industrials sectors, has announced its inaugural investment in JENNMAR, a leading global provider of infrastructure products and specialised services to to mining and other industries. In underground mining & tunnelling it is particularly known for supplying rock reinforcement and ground control solutions including rock bolts, beams, mesh, rebar and resin.

It says JENNMAR will continue to be led by CEO Tony Calandra and the rest of its “industry leading, tenured management team.” FalconPoint has invested and committed in excess of US$250 million of equity to support the company’s expansion and global growth.

The statement said: “Since its founding in 1922, JENNMAR has provided mission-critical products and essential services to the civil infrastructure, solar, mining, and construction industries. The company maintains a broad product and service offering, with a modernised asset portfolio that enables it to meet customers’ needs across manufactured products, resins and chemicals, diversified industrial manufacturing, and specialised services such as engineering support and staffing. JENNMAR now has more than 4,000 employees across nearly 80 locations in North America, Australia, Asia, and Europe, and serves a roster of blue-chip customers comprising industry-leading companies around the globe.”

“I am tremendously proud of the work the JENNMAR team has accomplished in recent years, as we’ve broadened product and service capabilities and accelerated our international expansion while continuing to deliver best-in-class quality to our customers,” said Calandra. “We are incredibly excited to be partnering with the FalconPoint team. I have a deep respect for their capabilities, and I look forward to their support in bringing the right resources, experience, and expertise to drive our ongoing growth. The transaction brings our liquidity position to over $500 million and positions us to continue investing heavily in developing and deploying innovative and cost-efficient solutions for our customers.”

Russ Gehrett, Founder and Managing Partner of FalconPoint said: “Built on the Calandra family’s 100-year track record of operational excellence in manufacturing and value-added services, JENNMAR has an irreplicable role within its end-markets, and we are thrilled for the opportunity to partner with them and help fuel their growth across the globe. Tony and his team have executed on a range of compelling opportunities during the past six years, transforming JENNMAR into a scaled, global company that meets the needs of customers around the world. I look forward to continuing to leverage FalconPoint’s capital and strategic resources to capture significant upside through both organic and inorganic growth.”

The announcement said that JENNMAR “has leveraged its category-defining market expertise in the US to fund significant reinvestment in the business – including growth capex and new acquisitions. In recent years, the company has executed on a robust deal pipeline, expanding its production capacity and strengthening its foothold in growing markets around the world. Since 2018, the company has invested over $450 million, completing over a dozen M&A transactions, opening numerous greenfield facilities, and installing cutting-edge automation throughout the global facility footprint.”

BofA Securities and Truist Securities, Inc. served as financial advisors, and Lowenstein Sandler LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal advice to FalconPoint. Jones Day served as legal advisor to JENNMAR.