November 01, 2012
The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that they have finalized the sale of their portfolio company, Velcon Filters, LLC to Parker Hannifin Corporation (NYSE: PH). Terms of the transaction were not disclosed.
Headquartered in Colorado Springs, Colorado, Velcon is a niche manufacturer of filtration systems, including vessels and replacement cartridges, which meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets.
When Sterling acquired Velcon in 2009 from the founding family, the business was the market leader in the aviation filtration market with a stable base of recurring revenue. Sterling and Velcon together have made three strategic acquisitions over the past three years, expanding Velcon’s end markets beyond aviation into both upstream and downstream oil and gas filtration, as well as other process applications, and diversifying Velcon’s geographical footprint into Europe, the Middle East, Asia and Africa. “Sterling partnered with the Taylor family to capitalize on Velcon’s market leading position in jet fuel filtration, and together we have built a global and diversified industrial fluid filtration company,” said Greg Elliott, Partner at The Sterling Group. Under Sterling’s ownership, Velcon has more than doubled in size.
The combination with Parker’s filtration business is expected to further solidify Velcon’s position as the highest standard in the filtration industry. “This acquisition brings us a leadership position in aviation and industrial fuel filtration, particularly for aviation fuel which requires specialist expertise and certifications,” said Peter Popoff, President of the Filtration Group at Parker. “We are excited about the opportunities to combine our strengths and extend our solutions to more customers, markets and geographies.”
During its 30 year history, The Sterling Group has partnered with 13 different family businesses, bringing its operating expertise and a commitment to partnering with management to improve North American based industrial businesses. The Sterling Group was advised by Robert W. Baird & Co. and Willkie Farr & Gallagher.
About The Sterling Group
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 42 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.9 billion. Currently, Sterling has $1.1 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Stackpole International, Liqui-Box and Dexter Axle.
About Parker Hannifin Corporation
With annual sales exceeding $13 billion in fiscal year 2012, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. The company employs approximately 60,000 people in 48 countries around the world. Parker has increased its annual dividends paid to shareholders for 56 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. For more information, visit the company’s web site at www.parker.com or its investor information web site at www.phstock.com.
Past performance is no guarantee of future results and all investments are subject to a loss.
November 01, 2012
The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., has completed the acquisition of the Dexter Axle business from Tomkins Industries, Inc., a subsidiary of Pinafore Holdings B.V. The investment is Sterling’s fourth investment in its third fund, an $820 million fund raised in 2010. Dexter is the second business Sterling has acquired from Tomkins in the last fourteen months.
Dexter is a leading designer and manufacturer of trailer axle, brake, and suspension assemblies and related replacement parts and components for use primarily in the industrial and utility trailer and RV markets in North America. “For over 50 years, Dexter has provided customers with the highest quality axles in the industry,” said Adam Dexter, CEO of Dexter. “The entire team is thrilled by Sterling’s support of our business, our culture, and our commitment to delivering the best customer service and product quality in the trailer running gear market.”
During its thirty year history, Sterling has sponsored the carve-out of 22 businesses from larger corporate parents, including multiple acquisitions from DuPont, British Petroleum and Tomkins. “We are excited about the opportunity to draw on our deep experience with corporate carve-outs to transition Dexter to a stand-alone business,” said Kevin Garland, Partner at The Sterling Group. “We look forward to partnering closely with management to achieve new levels of profitability and create value for all shareholders.”
The acquisition was financed with equity from Sterling Group Partners III, L.P. and several other co-investors. Senior debt financing was arranged by BNP Paribas and mezzanine debt was provided by Hancock Capital Management and Fifth Street Capital.
About The Sterling Group
Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of 42 platform companies and numerous add-on acquisitions for a total transaction value of approximately $9.9 billion. Currently, Sterling has $1.1 billion of committed capital under management through three funds. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, B&G Crane, Saxco International, Stackpole International, Liqui-Box and Dexter Axle.
Past performance is no guarantee of future results and all investments are subject to a loss.
The Sterling Group is an operationally focused middle market private equity firm that builds winning businesses for customers, employees and investors.
PRIVACY NOTICES/TERMS OF USE
© 2024 The Sterling Group.All rights reserved.