StoneTree’s Quiet Buy of Reel Power Signals Private Equity’s Interest in Industrial Gear

Sale announced, and what it means for a small but steady industry

Reel Power International Corp. reached an agreement to be sold to StoneTree Investment Partners, the companies said in a joint announcement. The adviser on the deal was Mesirow, which ran the sale process for Reel Power. Terms were not disclosed.

At first glance this is not a splashy transaction. It involves a specialist manufacturer and a middle‑market private equity buyer rather than a headline-grabbing tech takeover. But for customers, suppliers and workers in the industrial parts world it matters in a practical way: a new owner with financial backing can mean faster investment in factories, steadier supply and changes to how the business is run.

What the deal involves: buyer, seller, scope and what’s known about the terms

The buyer is StoneTree Investment Partners, a private equity firm that focuses on middle‑market industrials and service businesses. The seller is Reel Power International Corp., a maker of equipment used in power handling and cable management. Mesirow served as the exclusive financial adviser to Reel Power during the sale.

The companies said the sale agreement has been signed and the transaction is expected to close after the usual steps: final documents, any required approvals and closing conditions. Neither the purchase price nor the detailed financial terms were released. That is common in privately negotiated deals involving smaller manufacturers and private equity buyers.

From the buyer’s point of view, StoneTree typically looks for companies that generate stable cash flow and where operational improvements can boost returns. From the seller’s view, a sale to a private equity firm can unlock capital for new equipment, product development or acquisitions that would be hard to fund otherwise.

Who Reel Power and StoneTree are — products, markets and track records

Reel Power supplies industrial customers with products that help move and manage cables, hoses and power connections. Those items are quiet workhorses: they don’t make headlines, but they are essential in factories, construction sites, utilities and vehicle maintenance.

StoneTree Investment Partners is known for buying family‑owned or founder‑led companies in the industrial and services sector and then working with management to grow revenue and margins. The firm tends to stay in businesses where technical know‑how and steady customer relationships are more important than flashy innovation.

For customers of Reel Power, the most immediate facts that matter are continuity of supply and service. For employees, the sale could mean new investment and a push to modernize operations — or it could bring restructuring aimed at improving efficiency. Those outcomes depend on how StoneTree and Reel Power’s leadership choose to proceed after the deal closes.

Mesirow’s role and statements from advisors or principals

Mesirow acted as exclusive financial adviser to Reel Power, managing the process of identifying buyers, soliciting offers and negotiating terms. That role typically includes preparing marketing materials, coordinating confidentiality processes and steering talks between buyer and seller to reach a deal.

The announcement framed Mesirow’s work as pivotal in producing a competitive outcome for Reel Power’s owners. No direct quotes were provided in the public statement, and Mesirow and the principals involved did not release detailed commentary on the sale price or conditions.

Why this sale matters: trends in industrial automation, material handling and PE activity

This kind of deal reflects a broader trend: private equity has a steady appetite for industrial niche players that supply essential parts or services. Those businesses can be less cyclical than consumer goods or software, and they often benefit from long customer relationships and recurring orders.

Another backdrop is the slow but steady push by manufacturers to automate and modernize. Equipment providers that support factories and field operations can see more demand as firms refresh gear, add safety features or adapt to new power and connectivity needs.

Finally, supply chain concerns and a desire for local or near‑site suppliers have encouraged investors to back companies that can guarantee steady deliveries. For private equity, that adds predictability to cash flows — a key reason middle‑market industrials remain attractive.

What comes next for customers, employees and the businesses

The deal will move into a closing phase that typically takes weeks to months. Customers should expect business as usual for now, while employees may face a period of review as the new owner sets priorities. StoneTree will likely evaluate where to invest and whether to expand product lines, sales coverage or production capacity.

In short, this transaction is a routine but meaningful example of how private buyers keep the supply chain moving. For the communities and workers tied to Reel Power, the most important change will be whether the new owner uses fresh capital to strengthen the business or focuses first on cost improvements.

Sources

• prnewswire.com