KINGSFORD – A new era is ahead for Oldenburg Group Inc. facilities in Kingsford and Iron River.

The Milwaukee-based company announced today that it has agreed to sell two of its three divisions to J.F. Lehman & Co., a private equity firm based in New York. Financial terms were not disclosed, but Lehman indicated it will not close Oldenburg’s plants and employees will keep their jobs.

The sale includes Oldenburg’s underground mining equipment and defense businesses. The company is retaining only its commercial lighting equipment division.

J.F. Lehman & Co. (JFLCO), founded in 1992 by former Secretary of the Navy, John Lehman, focuses on investing in companies in the defense, aerospace and maritime industries and companies using the technical capabilities that originate from these sectors, according to a press release from Oldenburg Group.

JFLCO says its investment strategy is designed to leverage its specialized industry knowledge and operational skills to create significant value by helping acquired companies achieve their full potential.

Oldenburg’s Heavy Equipment Group began in 1858 as Lake Shore Inc. in Marquette, and has built a reputation as a specialized equipment designer and manufacturer in the defense and mining industries.

Wayne C. Oldenburg purchased Lake Shore Inc. in 1987.

In a return to its roots, Oldenburg said, the new company name is Lake Shore Systems, Inc. (LSSI).

“One of my first conditions that I said to Lehman was that I wouldn’t consider any deal unless there was an agreement to hire everybody and not to close any facilities,” he said. “That was not an issue for them. It was what they preferred.”

The existing management team and employees will remain in place. All the factories and facilities will continue operations as normal, Oldenburg said, including the technology center in Kingsford; Upper Peninsula factories in Iron River and Ontonagon and a Wisconsin factory in Rhinelander; mining sales and service office in Claremont, N.H.; and all mining locations in Mexico.

LSSI’s current backlog is very strong and there is a great deal of opportunity for new work for the U.S. Navy and Coast Guard, Oldenburg said.

Additionally, he said, the company remains well positioned in the mining equipment market.

“We are pleased to have Lake Shore join our expanding portfolio of defense, maritime and aerospace companies,” said Alex Harman, partner at JFLCO. “They are an excellent fit with our investment strategy given their leading market positions, long-standing customer relationships and outstanding workforce. In today’s marine and mining marketplace, the need for specialized, high-quality, safe, and cost-effective solutions is growing, and Lake Shore offers a full-range of products and aftermarket services to meet this demand. We look forward to working with the management team to grow the business organically and through complementary add-on acquisitions.”

Wayne Oldenburg will continue to run the commercial lighting division, along with his son, Ryan. He said he’ll be looking for additional acquisitions and is open to a variety industries and markets. “I don’t want to be one more ex-CEO on the beach. That’s not my style,” he said.

The LSSI management team includes: Jessica Frost, chief executive; Dan Bruso, executive vice president, operations; Kelly Gaucher, chief financial officer; Aaron Kadish, vice president – mining and commercial; Jon Jennings, vice president defense; and Fritz Wenzel, vice president engineering.

The sale is expected to be finalized in about a month.

Jim Anderson’s email address is janderson@ironmountaindailynews.com.