Power Play: HKW Merges EEE and Endpoint for Infrastructure Push

LOVELAND, CO – January 29, 2026 – In a significant move to consolidate its position in the burgeoning electrical power products market, private equity firm HKW has orchestrated a strategic merger between its portfolio company, Electric Equipment Engineering (EEE), and Endpoint Industrial Controls. The deal combines a century-old power distribution stalwart with a fast-growing specialist in mission-critical controls, creating a more formidable player poised to capitalize on the relentless demand from data centers, telecommunications, and advanced industrial sectors.

The merger, announced today, unites Denver-based EEE, a designer and manufacturer of electrical power distribution products since 1922, with Loveland-based Endpoint, a nimble firm founded in 2018 that has quickly carved out a niche in low-voltage electrical products for critical environments. The combined entity aims to provide a more comprehensive suite of products, from customized backup power systems to sophisticated industrial control panels, under a single strategic umbrella.

“Endpoint is a highly complementary addition to the EEE platform, strengthening our combined product offering and expanding how we serve customers,” said Laurence Lederer, Partner at HKW, in a statement. This move signals a clear strategy to build a more integrated and powerful supplier in a market where reliability and specialization are paramount.

A Union of Legacy and Agility

The synergy at the heart of this merger lies in the distinct yet complementary strengths of the two Colorado-based companies. Electric Equipment Engineering brings a deep legacy, having spent a century developing customized AC and DC power products. Specializing in backup power systems and retrofits for existing facilities, EEE has a long-established reputation for robust, engineered-to-order solutions in sectors like utility infrastructure and telecommunications.

In contrast, Endpoint Industrial Controls represents the newer, more agile side of the industry. The company has built its reputation on the rapid design and deployment of low-voltage control panels, switchboards, and Motor Control Centers (MCCs). Its focus on mission-critical applications has made it an essential partner for data centers and energy clients where uptime is non-negotiable. Endpoint’s status as a Gold Partner with Rockwell/Allen Bradley and its partnerships with other industry giants like Siemens and ABB underscore its deep integration with modern industrial automation ecosystems.

By joining forces, the merged entity can now offer clients a seamless, end-to-end solution. A data center operator, for example, could source EEE’s large-scale customized power distribution and backup battery systems alongside Endpoint's UL-certified, low-voltage panelboards and control systems that manage power within the server racks. This integration addresses a key market need for streamlined procurement and unified technical support, potentially giving the combined company a significant edge over more fragmented competitors.

HKW’s Blueprint for Building Industrial Powerhouses

This merger is a classic example of HKW's long-standing investment strategy. The middle-market private equity firm, which has sponsored over 70 platform transactions and 80 add-on acquisitions since 1982, specializes in growing manufacturing, distribution, and business services companies. EEE serves as the “platform” company, which HKW acquired from the founding Morroni family, and Endpoint represents a strategic “add-on” acquisition designed to enhance the platform’s capabilities and accelerate its growth.

“The combination positions EEE and Endpoint to potentially accelerate growth in a growing electrical power products market,” noted Alex Johnson, Vice President at HKW. This statement reflects the core of the private equity value-creation model: identify a strong platform in a high-growth market and bolt on complementary businesses to expand market share and product offerings.

Crucially, HKW is banking on continuity to ensure a smooth transition. Endpoint will continue to operate from its Loveland headquarters under its existing leadership team, including CEO John Clay and COO Bevin Clay. This decision signals HKW’s confidence in the management that drove Endpoint’s rapid initial success and its desire to retain the company's entrepreneurial culture and specialized expertise. For Endpoint, the partnership provides a massive infusion of resources and market access.

“Partnering with HKW and EEE brings additional resources that will support Endpoint’s growth and allow us to better serve our customers,” said John Clay. This arrangement allows Endpoint to leverage EEE’s century of market presence and HKW’s capital backing to scale its operations far more quickly than it could have independently.

Competing in a High-Stakes, High-Growth Arena

The timing of the merger is no accident. The new entity is positioned at the confluence of several booming markets. The global data center power market, valued at over $20 billion, is projected to grow at a blistering compound annual growth rate (CAGR) of over 13%, driven by the explosion of cloud computing, AI, and big data. Similarly, the telecom power systems market is set to expand significantly, with a projected CAGR of over 10% as 5G network deployment accelerates globally.

These are mission-critical environments where the cost of power failure is catastrophic, making the reliability of electrical systems a top priority. The industrial controls market, meanwhile, is experiencing its own surge, with a projected CAGR of over 9.5% fueled by the push toward Industry 4.0 and smart manufacturing.

By combining EEE's expertise in resilient backup power with Endpoint's specialization in the fine-tuned controls necessary for modern data and industrial centers, the merged company is better equipped to challenge established giants like Schneider Electric, Eaton, and ABB. While these titans offer vast catalogs, the newly formed EEE-Endpoint entity can counter with a more focused, deeply integrated portfolio backed by the agility and customer-centric engineering of a smaller organization. The ability to provide a single point of contact for a project's entire power backbone, from the main switchgear to the final control panel, presents a compelling value proposition for customers navigating complex infrastructure builds.