Functional Devices Acquired by Private Equity Firm
Functional Devices, a manufacturer of controls and building automation components, has been acquired by a new private equity owner. The transaction reflects continued investor interest in the building technology and controls market.
- The transaction saw Functional Devices move from one private equity owner, L Squared Capital Partners, to a new firm, Windjammer Capital. The management team, led by President and CEO Mark Fernandes, invested alongside Windjammer and will continue to lead the business. - Functional Devices is known for its RIB® (Relay in a Box®) product line, which includes relays, current sensors, power supplies, and other control devices that are considered an industry standard in building automation. These components are critical for integrating lighting with HVAC and other building management systems. - The acquisition is part of a broader trend of private equity investment in building automation, a market estimated at $6.8 billion and growing at a 17% compound annual growth rate. This growth is driven by demands for energy efficiency, electrification, and the increasing complexity of smart building systems. - The new owner, Windjammer Capital, focuses on control equity investments in middle-market companies, particularly in niche manufacturing and business services. Their strategy often involves partnering with existing management to drive growth and expand product lines. - Windjammer's portfolio includes other companies relevant to building infrastructure and power, such as PDU Cables, a provider of power solutions for data centers, and Radix Wire & Cable, a manufacturer of specialty wires. - The prior owner, L Squared, had an investment thesis focused on the building automation and controls market and intended to use Functional Devices as a platform for strategic acquisitions. Windjammer's investment may signal a continuation of this strategy to build a larger platform of mission-critical building components.
