Industrial Products

Fraser Industries

Leading provider of boat-building and maritime repair services for both commercial and government clients.

Transaction Overview

  • Represented Fraser Industries in its sale to Cleaves Invest AS and Foundry Mountain Infrastructure Partners.
  • Fraser Industries is a Superior, Wisconsin-based holding company with the three operating subsidiaries
    • Fraser Shipyards (“FSY”) is a provider of ship construction, maintenance and refurbishment services to large commercial and government vessels on Lake Superior.  It is the only large U.S. shipyard on the Lake, delivering a complete range of services from minor repairs to extended lay-ups for repowering or overhaul projects. The shipyard’s location, workforce, modern facilities and heavy-duty equipment are a critical competitive advantage and barrier to entry in its market, making FSY a go-to provider for the domestic and international maritime industry.
    • Northern Engineering Company (“NECO”) is a provider of specialized engineering, precision machining and repair services for mechanical equipment and components, including power transmissions, gear drives, propulsion systems and steel fabrication. NECO has historically focused on supporting vessel operators in the domestic and international maritime industry – generally together with FSY projects.
    • Lake Assault Boats (“LAB”) designs and manufactures high-performance aluminum watercraft, primarily for government agencies. The business specializes in boats for marine fire/rescue and law enforcement, geographical surveys, navigation and other mission-critical applications.
  • Infrastructure Acquisition Partners is a JV between Oslo-based Cleaves Invest AS and Foundry Mountain Infrastructure Partners. Cleaves is a privately owned ship brokering and independent financial services group of companies focusing on shipping, offshore infrastructure, energy and financial services. Foundry Mountain is a North American-focused firm with a long-duration approach to infrastructure investing.

Key Observations

  • Cleaves and Foundry Mountain sought to leverage their vast relationships in the global maritime industry to fully exploit the growth potential and scarcity value of Fraser Industries – a company with a 60-acre facility (with navigable water access, freeway, and rail access) and decades of commercial and government project experience.
Read Press Release
Hennepin Partners LLC