IEA fabricates radiators to cool the large diesel engines that power generators used for backup power at hospitals, universities and data centers. The company has several other capabilities, which is why Kettinger separated them into different entities, he said.
Engendren includes IEA LLC, Silver Lining Systems LLC, which manufactures thermally managed enclosures for data centers, ArcRon LLC, a steel fabrication business, and Chrysalis LLC, which is for future use.
“Right now, that is a shell company that’s intended to be the vehicle that we’re going to invest in plants and operations around the world to further the other three businesses,” Kettinger said. “The idea is we’ll be opening operations around the world to build radiators … but also possibly silver lining products as well.”
Major engine manufacturers are doing well, and those are some of IEA’s main customers, so Kettinger expects the business to see increased demand.
The growth in data consumption worldwide has also increased the demand for data processing capacity and has led to the rapid construction of data centers. Silver Lining makes enclosures that keep those centers cool.
All four companies will operate out of IEA Inc.’s existing facilities in Kenosha and Menomonee Falls. Tom Kintis of CGK M&A Advisors in Waukesha assisted Kettinger in completing the deal.
“In executing the deal, we recapitalized the company so that I have considerable dry powder to be able to invest in business and invest in equipment and people to really grow it,” Kettinger said.