LFM Capital Adds to Electric Grid Reliability Platform with SESCO

NASHVILLE, TN – October 9, 2025 – LFM Capital, a private equity firm focused on lower middle market manufacturing and industrial services businesses, announced today its investment in Systems Engineering and Sales Co. (“SESCO” or the “Company”). SESCO will be a part of LFM's electric grid reliability platform, which was launched earlier this year in partnership with ZTZ Services International, LLC (“ZTZ”), a provider of online transformer monitoring products and solutions. CP Energy Holdings (“CPEH”), a private investment firm focused on energy, power and industrial businesses, has also participated as a minority investor.

Founded in 1968 and with roots extending back to the early 1900’s, SESCO is a leading supplier of power transformer installation and maintenance processing equipment. This equipment allows for the safe operation of medium and high-voltage transformers across North America. The Company’s end markets include power transmission & distribution, power generation, power transformer manufacturing, and power transformer service. SESCO is based in Fort Wayne, Indiana.

Steve Cook, LFM Executive Managing Director, expressed his enthusiasm, stating, “SESCO has an unparalleled track record as a true market leader with dedicated customers directly tied to the aging power grid. LFM is delighted to partner with Jim and the SESCO team to help the business continue its growth and meet rising customer demand.”

Jim Stout, SESCO President, added, “SESCO’s established technical expertise in oil purification and transformer service equipment will be a powerful addition to the platform. Since acquiring SESCO in 1991, we have maintained our focus on product differentiation and long-lasting customer service, leading to our prominent market position and loyal customer base. We are excited about working with LFM and CPEH to ensure a bright future as part of a larger platform.”

Conner Harris, LFM Managing Director, commented, “LFM remains devoted to building a unique platform that will support the maintenance and sustainability of North America’s electric grid infrastructure. SESCO and ZTZ both provide service-enabling equipment that supports compliance with regulatory, warranty, and uptime requirements across our aging electrical infrastructure. These requirements, along with record high power demand and an asset base that is largely beyond its useful life, create a compelling opportunity.”

David Freed, CP Energy Holdings Co-Founder and Co-Managing Partner, noted, "The combination of ZTZ's leading monitoring technologies and SESCO’s proprietary transformer service equipment provides our power customers with both diagnostic and remediation solutions, creating an unparalleled offering in the market that helps keeps power on."

LFM Associate Aaron Ramsden worked with Cook and Harris on the transaction. Jessica Ginsberg, LFM Managing Director, sourced the opportunity.

About LFM Capital

LFM Capital is a private equity firm based in Nashville, Tennessee. The LFM team is led by experienced and successful Fortune 50 global executive managers and private equity professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks, and a successful track record in lower middle market investing. LFM targets lead or control investments in U.S.-based lower middle market manufacturing and industrial services companies with at least $3 million of EBITDA and enterprise values ranging from $15 million to $125 million. The firm’s mission is to partner with portfolio company management to develop and build world-class operations through a combination of manufacturing and operations excellence and targeted growth and expansion strategies. For additional information, please visit www.lfmcapital.com.

About SESCO

Founded in 1968 and acquired by Jim Stout in 1981, SESCO is a leading supplier of power transformer installation and maintenance processing equipment. The company’s end markets include power transmission & distribution, power generation, power transformer manufacturing, and power transformer service. SESCO is based in Fort Wayne, Indiana. For additional information, please visit www.sesco-inc.com.

About CP Energy Holdings

CP Energy Holdings is private investment firm focused on driving the decarbonization, modernization, reliability and resilience of the energy, power and industrial sectors. The firm’s principals have together built several market-leading industrial decarbonization businesses that they’ve exited to both the private and public markets. CP Energy Holdings was formed in 2024 to invest in leading power and industrial businesses that are creating a cleaner, more reliable energy future. For additional information, please visit www.CPEH.com.