Bush Industries has new primary ownership in the form of Lorraine Capital, LLC, a Buffalo, NY, private equity firm, in partnership with Landon Capital Partners and Ironwood Capital.
Bush is based in Jamestown, NY, not far from Buffalo.
According to Lorraine Capital, the acquisition will bolster the ability of Bush to serve commercial office and residential customers with quality products meeting the company’s strategic focus: easy, fast, affordable.
In late 2014, a management group, with Jim Garde, Bush CEO, Neil Frederick, CFO, Mike Evans, evp/business development, and Steve Phelan, evp/sales, purchased the company.
According to a report in The Buffalo News, confirmed by Lorraine Capital, William Maggio, the firm’s managing director, will serve as Bush executive chairman, Evans will be president and Frederick and Phelan will remain with the company. Ongoing plans call for Evans to become CEO and Garde to serve as a temporary adviser to the board.
In a statement on the deal, Garde said, “This ownership transition is ideal for Bush Industries because it allows us to partner with an ownership group that invests for the long term and ensures that we can continue to execute strategies that will capitalize on the continued shift in consumer purchases to e-commerce. We have an experienced, reliable and capable workforce, and are pleased Lorraine recognized our team’s strength. We are confident this move will result in continued corporate growth and expanded employment in all phases of our business.”
Maggio noted, “The Bush Industries opportunity could not be more tailor-made for Lorraine. Key members of Bush Industries’ management team will remain owners of the company, and we look forward to working with them to expand their very strong brand. I am pleased that Mike Evans will stay on as president. Mike has been instrumental in developing and executing Bush’s growth strategy. Furthermore, it fits in well with Lorraine’s goals of investing in upstate New York businesses where we can make a positive impact on their legacy in our great community.”
In response to an inquiry, Lorraine Capital spokesman Sam Russo told HomeWorld Business that the strong Bush leadership team was a factor that compelled the investment firm’s interest in the acquisition. He stated that no predetermined timetable for additional initiatives has been set at this point.
He added, “Lorraine has a track record of investing the necessary capital, expertise and people to accelerate growth strategies of already strong organizations, and we are excited to work alongside Bush’s high performing team to amplify e-commerce channel and product line expansion.”