State Pension Fund Invests $3.4 Million in Auburn Armature
DiNapoli Highlights In-State Private Equity Program
New York State Comptroller Thomas P. DiNapoli announced yesterday that DeltaPoint Capital Management has acquired a majority stake in Auburn Armature, Inc. (AAI), an electrical products distributor, manufacturer, and service company in Cayuga County. The New York State Common Retirement Fund (Fund) is an investor in DeltaPoint through the In-State Private Equity Program.
“The Fund’s In-State Private Equity Program helps businesses start up and grow and is putting New Yorkers to work while providing risk-adjusted returns for the public pension fund," DiNapoli said. “With several sites in New York and plans to further expand, Auburn Armature is a company with strong New York roots that is helping our upstate communities.”
The In-State Private Equity Program was established in 2000 and partners the Fund with private equity managers investing in New York-based companies. The program generates an optimal investment return for the Fund while expanding the availability of capital for New York businesses.
Highlights of the In-State Private Equity Program (as of December 2012) include:
- More than $1 billion has been committed to the program since 2001 of which $641 million has been invested in 246 companies. The program currently has $385 million available for investment in New York-based companies.
- DiNapoli has committed $574 million to the program since he took office in 2007.
- Investments have generated more than 3,000 new jobs.
- Companies in which the Fund has invested have raised nearly $4 billion in additional capital.
“We recognized an opportunity in Auburn Armature to partner with management through an investment in a rapidly growing, central New York-based company with additional capacity to expand,” said Kevin Halpin, managing director at DeltaPoint. “We are proud to have partnered yet again with the New York State Common Retirement Fund to help put together a solid deal that invests in New York State businesses. DeltaPoint’s operational experience and access to significant capital combined with Auburn Armature’s existing capabilities and geographic presence will allow us to position the company for strong growth.”
“This partnership with the New York State Common Retirement Fund and DeltaPoint provides needed resources for sustainability, employment growth, and expansion at AAI - Auburn Armature. We are pleased to be given the opportunity and we look forward to our future endeavors in New York,” said Ben Carter, CEO of AAI - Auburn Armature.
Since 2001, the Fund has invested $19.5 million in three companies in the neighboring counties of Onondaga and Oswego through the program. For more information on the program or company eligibility, visit: http://www.osc.state.ny.us/pension/instate/.
About DeltaPoint Capital Management
DeltaPoint Capital Management is a Rochester-based private equity firm that makes lead-sponsored investments in companies with proven cash flows and strong management teams and that are principally located in the Northeastern United States. DeltaPoint Capital Management focuses on businesses with annual revenue of at least $10 million in the manufacturing, distribution and specialized service sectors. The firm’s strategy is to rely on its strong partnerships with company management teams and long history of operating and financial experience to help drive value creation at its portfolio companies. For more information, visit: www.deltapointcapital.com.
About Auburn Armature Inc (AAI)
Auburn Armature is a distributor of industrial and commercial electrical equipment. In addition, the company provides repair and maintenance services. Headquartered in Auburn, AAI has been in business for nearly 70 years and employs 125 people. Its 50,000 square-foot Auburn facility was built in early 1998. Since then, the company has added warehouse and counter sales offices in Syracuse, Binghamton and Albany. In 2011, AAI completed its acquisition of Great Lakes Controls of New York, based in Rochester. The Rochester branch combines a high-tech automation training center, warehouse and counter sales operation. AAI anticipates its next location will be in Buffalo.