Tuesday, August 19, 2014

Investment Groups Buy Controlling Interest in Guerdon Industries

A Portland private-equity firm has bought controlling share of Guerdon Enterprises, a Boise modular-building maker.

Riverlake Partners was joined in its investment by MainStreet Capital Corp. of Houston. The price was not disclosed.

Guerdon specializes in building components and providing assembly services for large modular buildings, including multifamily housing. Guerdon focuses on Western U.S. and Canadian markets. The company, founded in 2001, has more than 300 employees and reported more than $80 million in sales in 2013.

CEO Laurence "Lad" Dawson, who bought Guerdon's southeast Boise factory in 2001 from his former employer, will continue as CEO and remain a substantial shareholder. Leaders from Riverlake and Main Street Capital will gain seats on the company’s board of directors.

“We’ve enjoyed strong growth during the past several years, and we look forward to working with a new equity partner offering expanded opportunities to support our future growth plans and strategies,” Dawson said. Riverlake Partners invests in companies typically valued between $20 and $75 million that are located in the Pacific Northwest of the U.S. and Canada.

“From the beginning, we were impressed with Mr. Dawson, his management team and the company as a whole,” said Erik Krieger, a partner at Riverlake. “Guerdon is the type of high-quality organization we strive to partner with, and we’re looking forward to helping achieve the company’s future objectives.”

Guerdon struggled when the housing crisis hit in 2007 but recovered thanks to the surging oil industry in North Dakota, which needed quickly constructed buildings for worker camps. 

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