One Equity Partners to Divest BRUSH Group’s Power Distribution Business After Transformational Growth
One Equity Partners (OEP), a leading middle-market private equity firm renowned for its carve-out expertise and operational transformation strategies, has announced that it has entered into a definitive agreement to sell the Power Distribution division of BRUSH Group (BRUSH or “the Company”). While financial terms of the private transaction were not disclosed, the divestiture represents the culmination of a strategic multi-year transformation effort following OEP’s initial acquisition of BRUSH from Melrose Industries.
This marks the second major divestiture involving BRUSH under OEP’s ownership. In October 2022, OEP successfully exited BRUSH’s Power Generation business through a strategic sale to Baker Hughes (NASDAQ: BKR), a move that underscored the firm’s ability to reposition and scale industrial assets through targeted investment, acquisition, and operational streamlining.
Founded in 1889 and headquartered in Loughborough, United Kingdom, BRUSH has a long-standing heritage as a trusted manufacturer and service provider in the energy infrastructure space. The company specializes in the original equipment manufacturing (OEM), assembly, and aftermarket servicing of electrical power equipment used in generation and distribution. BRUSH’s portfolio includes switchgear, transformers, control systems, and high-performance generators that support mission-critical applications across a range of industries including utilities, high-speed rail, industrial infrastructure, data centers, and renewable energy projects.
Strategic Carve-Out and Two-Phase Growth Story
When OEP first invested in BRUSH, the company operated two primary business divisions: Power Generation and Power Distribution. The Power Generation segment focused on large-scale generator units, serving global customers in the utility, data center, and industrial markets with both prime and backup electrical generation solutions. Meanwhile, the Power Distribution division manufactured and maintained switchgear, control panels, and transformers that formed essential components in electricity delivery systems across the UK and Europe.
In a calculated strategic move, OEP carved out BRUSH from Melrose Industries in a complex transaction that required the restructuring of operations, the formation of new leadership structures, and the repositioning of the business for standalone growth. Within one year of completing the carve-out, OEP executed the sale of BRUSH’s Power Generation business to Baker Hughes in 2022, allowing the firm to concentrate its capital and strategic focus on the smaller—but high-potential—Power Distribution segment.
This strategic focus led to the establishment and expansion of BRUSH’s Power Networks division, enabling the company to position itself as a vital provider of end-to-end electrical infrastructure solutions. According to OEP, this multi-step transformation highlights the firm’s M&A-focused approach to value creation.
Building a Scaled Platform Through M&A and Operational Excellence
Over its four-year ownership period, One Equity Partners helped BRUSH execute a broad range of initiatives aimed at accelerating growth, driving profitability, and enhancing the company’s competitive positioning. These efforts resulted in BRUSH more than doubling its earnings before interest, taxes, depreciation, and amortization (EBITDA) during the hold period.
A key enabler of this transformation was a highly proactive acquisition strategy. Under OEP’s ownership, BRUSH completed seven strategic acquisitions across its Power Generation, Power Distribution, and Power Networks segments. These acquisitions not only added complementary capabilities and geographic reach but also brought in new technologies and service offerings, solidifying BRUSH’s reputation as a comprehensive provider of electrical infrastructure equipment and support.
Operational excellence initiatives also played a central role in the transformation. Working closely with BRUSH’s management team, OEP implemented wide-ranging changes to stand up the business as a fully independent organization post-carve-out. These initiatives spanned manufacturing optimization, digital integration, margin expansion strategies, and the reorganization of commercial and after-sales support operations. All these steps were designed to increase efficiency, reduce costs, and improve customer responsiveness, particularly within the high-demand UK utilities sector.
Executive and Investor Commentary
“OEP’s investment in BRUSH showcases our expertise in carve-out transactions and is a great example of how we effectively grow and improve businesses through our M&A-focused strategy,” said Steve Lunau, Partner at One Equity Partners. “OEP carved out a non-core business unit of a larger parent company, and in close partnership with management, helped the business become a strong standalone company, well-positioned for strategic M&A-driven growth.”
Lunau further emphasized the importance of BRUSH’s operational evolution. “The team executed extremely well, especially considering the complexity of separating from a diversified industrial parent. We’re proud of what BRUSH has achieved and confident it’s well-prepared for its next chapter.”
Echoing this sentiment, Ori Birnboim, also a Partner at OEP, noted: “BRUSH is another example of OEP’s value creation strategy. After the strategic sale of the Power Generation business, we remained focused on growing the Power Distribution and Power Networks operations, making BRUSH a leading provider of engineered electrical solutions for the UK’s critical infrastructure.”
For BRUSH’s executive leadership, the past four years have been defined by growth, change, and long-term value creation. CEO Nicolas Pitrat praised the partnership with One Equity Partners and credited the firm’s sector experience and growth strategy with enabling BRUSH to unlock its full potential.
“We are proud of BRUSH’s transformation under OEP’s ownership,” Pitrat said. “Our partnership with OEP helped us unlock significant strategic value across three great business units over the last four years. OEP was an excellent partner that brought significant expertise in the energy sector, sourcing and execution of transformational M&A, and building the company as a scaled platform for growth—all of which are key to BRUSH’s evolution.”
