Wilmington-based South-Tek Systems LLC has been acquired by Pfingsten Partners LLC, a private equity firm based out of Chicago, according to a news release.
Pfingsten acquired South-Tek Systems on Nov. 20. The terms of the deal were not disclosed, said Tim Bodemann, who founded South-Tek with his wife, Lisa.
The company designs and manufactures nitrogen generators and is located at 2940 Orville Wright Way in the North Kerr Industrial Park in Wilmington.
Tim Bodemann will move to a board of directors position, and Scott Bodemann, the Bodemanns' son, will be taking over day-to-day responsibilities of the company as president, Tim Bodemann said in an email.
"We found the ideal partner for our business," said Scott Bodemann in the release. "Pfingsten's operational approach to creating value combined with a conservative balance sheet will allow South-Tek to rapidly invest in new product and market applications which will position the Company for sustained growth."
Officials with Pfingsten Partners said in the release that the sale took place in partnership with the company's founders.
Jacobs Capital out of Chapel Hill and Wilmington represented the Bodemanns in the sale with Wyrick Robbins Yates & Ponton in Raleigh as counsel. "Both organizations are best in class and provided excellent guidance," Tim Bodemann said.
South-Tek Systems, which serves domestic and international customers in the industrial and commercial markets, sells its products through distributors, sales representatives, contractors and directly to end users, officials said in the release.
"South-Tek was poised for significant three- and five-year strategic growth potential and it was time to bring in a partner with the capabilities to assist in such growth," Tim Bodemann said of the timing of the sale.
"We chose to partner with Pfingsten Partners out of Chicago because of their strong understanding of and notable success with assisting companies like South-Tek toward reaching their full potential," he added.
Tim Bodemann said in his email that the company's location in Wilmington has been the "perfect location for our business from a resource and logistics standpoint," adding that South-Tek Systems will remain in Wilmington, where it has a "stellar team of employees" that have been key to the company's growth and success.
South-Tek Systems employs nearly 50 people. With South-Tek Systems' anticipated growth, Tim Bodemann said that the company will need to add to its team.
"The South-Tek management team built its business by developing high-quality, complex nitrogen generation solutions for their customers,” said Scott Finegan, Pfingsten managing director, in the release. "We look forward to supporting South-Tek's continued growth through investments in people, facilities, new products and strategic add-on acquisitions."