SunSource, Inc.

Industry: Industrial Products
Initial Ownership: 35.9%
Date of Initial Equity Investment: September 2001
Date of Exit:
April 2006

Business Description: SunSource, Inc. (“SunSource” or the “Company”) is a leading distributor of fluid power components and provider of complementary value-added services including engineering, design, assembly, repair and technical training to a highly diversified group of end-markets. With its broad product offering, extensive service offering and technological capabilities, SunSource creates solutions that enable customers to realize operating efficiencies and cost savings by streamlining their supply chains and manufacturing processes. 
Investment Thesis: SunSource had significant upside potential with the right management team and a strong financial partner. It enjoyed strong customer relationships in a niche industry, and therefore represented the potential to be a solid platform business. Other attractive attributes included:

  • Good prospects for add-on investments
  • Strong free cash flow characteristics


Investment Highlights: The deal team played an active role in the strategic growth of the company, helping management: (i) refocus the business geographically; (ii) upgrade its sales function; and (iii) execute three tuck-in acquisitions. The result was more than a three-fold increase in EBITDA during the investment period. In April 2006, the Company was sold to Code Hennessy & Simmons.

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