Diesel fuel injection supplier Pure Power Technologies (PPT) has been acquired from Navistar Inc., by an investment team whose principals include the Smithfield Group and Kensington Capital Partners. As a result, PPT now becomes an independent aftermarket supplier of high-performance diesel fuel-injection systems and precision machining products and systems for medium- and heavy-duty truck applications.
“Pure Power Technologies’ independence provides us with a tremendous opportunity for product diversity and growth,” said Jerry Sweetland, president and CEO, Pure Power Technologies. “We are now well-positioned to bring our world-class diesel technologies, precision manufacturing and testing capabilities to new market segments and customers that complement our core business with related products and solutions.”
The company also announced that Navistar will continue to be a major customer, as PPT will be the truck company’s primary supplier of high-performance diesel fuel-injection systems through a 10-year supply agreement for exclusive supply of its existing product portfolio.
PPT says the company’s unique experience as an OEM insider will allow it to develop products that stay ahead of market and regulatory trends and to deliver its products that offer uncompromising quality, durability and fuel economy to its customers.
“We view this agreement as a win-win for Navistar and Pure Power Technologies and its hard-working, dedicated workforce,” said Scott Mackie, Navistar vice president, business development. “Our supply agreement with Pure Power Technologies will help us continue to deliver high levels of quality and uptime to customers, while providing PPT the opportunity to grow and expand as a standalone, independent company.”
“The Smithfield Group and Kensington Capital Partners are committed to empowering Pure Power Technologies to continue to deliver capabilities and high-performance solutions that drive short- and long-term growth,” said Justin Mirro, president, Kensington Capital Partners. “Our investment team has decades of experience providing strategic and capital advisory services to suppliers in the automotive space and will leverage our collective expertise to help Pure Power Technologies achieve further market leadership.”
PPT has an advanced manufacturing facility located in Blythewood, South Carolina, and its development and test center in nearby Columbia. With its senior leadership team already in place, Pure Power Technologies is poised to invest additional capital to fuel growth through expanded services and, by utilizing existing research and development and manufacturing capabilities, to pursue new market channels in the OEM and aftermarket space. With a robust book of business and additional programs planned for the near future, the company says it will require increased in-house engineering and production manpower. To fuel this increased activity, Pure Power Technologies plans to hire approximately 25 employees in 2016, adding to the company’s current workforce of 230.
“Smithfield is delighted to lead the acquisition of Pure Power Technologies in partnership with management, Kensington Capital Partners and our fellow investors,” said John Arney, CEO, Smithfield Group. “Deployed in combination with the company’s excellent leadership team and highly skilled workforce, the capital and decades of operational and industry expertise Smithfield brings will enable Pure Power Technologies to grow and thrive as a leading independent business.”
