Edgewater Announces Sale of PGI International
Edgewater Growth Capital Partners II, L.P. (the “Fund”) is pleased to announce the recent sale of our portfolio company PGI International, Ltd (“PGI” or the “Company”). PGI designs, manufactures and distributes highly engineered products and instruments for the energy and agricultural industries. The Fund acquired majority ownership of PGI in May 2007 and partnered with the founding investors HM International to expand the Company through organic growth, acquisition and international expansion.
Shortly after acquiring PGI, Edgewater and the board recruited a new CEO and helped lead the Company through a five year plan centered on three strategic initiatives. First, manufacturing was expanded to serve a growing global market with production facilities in Houston, Texas, Queretaro, Mexico and Changzhou, China. Distribution and sales centers were established in Russia, Singapore and Germany. Second, operating costs were lowered through lean manufacturing programs. Third, Drilling Production Resources, Inc (“DPR”) was acquired in 2011 to expand the Company’s product line into new, fast-growing industry segments. From the initial acquisition in 2007 through 2012, PGI’s sales more than doubled while EBITDA increased nearly three-fold. This performance was particularly positive in light of the market downturn in 2008 and 2009 which negatively affected most of the Company’s customer segments. We are grateful to PGI’s outstanding management team for their excellent leadership and performance.