Why This Matters to Distributors: Private equity firm Incline Equity Partners has invested in The Conrad Company, a 58-year-old industrial distributor specializing in fluid power, motion control, and automation. The deal gives the family-owned distributor its first institutional investor and additional capital to pursue acquisitions, geographic expansion and new products and services.
Incline Equity Partners has invested in The Conrad Company, a York, Pennsylvania-based industrial distributor and service provider, with plans to expand the business through acquisitions and organic growth.
Financial terms were not disclosed.
The deal marks the first institutional investment in the 58-year-old, family-owned company and was completed in partnership with Conrad’s management team, according to Incline.
Conrad distributes pneumatic, hydraulic, automation, lubrication and compressed air products and provides engineering, assembly, fabrication, repair, and field services. Its customers include manufacturers, food and beverage companies, original equipment manufacturers, and other industrial businesses.
Incline said it plans to support Conrad’s growth through acquisitions, geographic expansion, additional products and services and investment in the company’s sales operations.
“We are excited to pursue opportunities to expand into adjacent offerings organically and through strategic M&A,” Incline Managing Director Michael Antonelli said.
Incline said Conrad operates in a fragmented market that provides opportunities to expand through acquisitions. The private equity firm also cited the distributor’s technical capabilities, customer retention and diversified customer and supplier base as factors behind the investment.
Conrad CEO Seth Bray said the partnership will provide additional resources for the company’s sales and technical operations.
“Partnering with Incline will allow us to invest in our sales and technical teams, adding capabilities that address our customers’ evolving needs and cultivate new relationships,” Bray said.
Conrad traces its history to 1968, when Jim and Mary Conrad founded Penn-Air Co. in a rented garage with three product lines and one employee. The business has since expanded into a group of seven brands with five office locations and more than 150 employees, according to the company.
Conrad serves customers across Pennsylvania, New Jersey, Maryland, Delaware, West Virginia, Virginia, North Carolina, South Carolina, and Georgia.
Pittsburgh-based Incline invests in middle-market companies across value-added distribution, services, software and technology, and specialized light manufacturing. The firm targets businesses with enterprise values between $25 million and $750 million.
Incline did not disclose its ownership stake in Conrad or whether the company’s existing owners retained equity following the transaction.
Conrad is now an active investment in Incline’s value-added distribution portfolio. Incline said its growth plan will focus on strategic acquisitions, geographic expansion and extending Conrad into adjacent markets and services.
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