News

Acquisition

Houston, TX October 31, 2016

Lynx FBO Network, a Portfolio Company of The Sterling Group, Acquires Aurora Jet Center

The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced the new name of its buy-and-build in the FBO industry, Lynx FBO Network (“Lynx”). Sterling has dedicated significant resources from its recent $1.25 billion fund to build Lynx into a leading FBO network providing fuel, ramp and other services to the general aviation industry.

Sterling also announced Lynx’s acquisition of Aurora Jet Center at the Aurora State Airport serving the Portland, Oregon metropolitan area. “Aurora Jet Center is the primary provider on the airfield and has been growing substantially over the past several years. It is an exceptional addition to our new network,” said Chad Farischon and Tyson Goetz, leaders of Lynx.

Sterling has assembled a strong and experienced team to build the new network. Greg Elliott, a Partner at The Sterling Group, has been involved in building several FBO networks in the past fifteen years, including roles as the Chairman of Encore and Trajen, and Board member of Landmark Aviation. Chad Farischon and Tyson Goetz are former members of both the Trajen and Landmark Aviation management teams and have purchased and integrated over 50 FBOs over the course of their careers.

“This acquisition is further affirmation that we partnered with the right team,” said Greg Elliott. “The first two locations, both primary providers at their respective airports, are perfect representations of our vision for the Lynx network. We are just getting started.”

Lynx currently boasts locations in Destin, Florida and Aurora, Oregon. Sterling and management are actively seeking acquisitions in North America.

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 $750 million. Sterling has sponsored the buyout of 49 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.2 billion of assets under management.  For further information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.



Acquisition

Houston, TX October 05, 2016

The Sterling Group Announces Formation of New FBO Network, Acquires Destin Jet

The Sterling Group, a middle market private equity firm based in Houston, Texas, announced the creation of a new fixed based operator (“FBO”) network and the acquisition of Destin Jet. Today’s acquisition of Destin Jet, an FBO located at the Destin Executive Airport in Destin, Florida, is the first location in the new network.

Sterling has assembled a strong and experienced team to build the new network. Greg Elliott, a Partner at The Sterling Group, has been involved in building several FBO networks in the past fifteen years, including roles as Chairman of Encore and Trajen, and Board member of Landmark Aviation. Chad Farischon and Tyson Goetz, former members of both the Trajen and Landmark Aviation management teams, will lead and manage the network, executing a buy-and-build strategy. Chad and Tyson have purchased and integrated over 50 FBOs over the course of their careers.

“Sterling is thrilled to partner with a talented team in Chad and Tyson,” said Greg Elliott. “Having worked together at both Trajen and Landmark, we knew that they were the right leaders to build a premiere network.”

“Sterling shares our vision to build a national leader in aviation services,” said Tyson Goetz. “Given their past experience in the industry and their track record of partnering with entrepreneurs to grow businesses through acquisitions, Sterling was the ideal partner for us.”

Destin Jet, the sole service provider on the Destin Executive Airport field, serves resort destinations in the Florida panhandle area and the Emerald Coast. Destin Jet’s facilities are world-class, featuring modern terminals with a wide range of passenger and crew amenities.

“We are looking forward to working with the airport and becoming an active member in the community,” stated Chad Farischon. “Destin is the perfect first location for our network given the best-in-class customer service and facilities, all built out under the superb leadership of Jay Odom. We look forward to building on this successful model across the country.”

Sterling and management are actively seeking acquisitions in North America.

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 $750 million. Sterling has sponsored the buyout of 49 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management. For further information, please visit www.sterling-group.com.



Acquisition

Houston, TX August 03, 2016

Specified Air Solutions, A Portfolio Company of The Sterling Group, Acquires Dectron Inc.

Specified Air Solutions, a market leading manufacturer of semi-custom commercial and industrial HVAC equipment, has completed the acquisition of the Dectron pool dehumidification systems business (“Dectron”) from the Lakdawala family. Specified Air is a portfolio company of The Sterling Group, a Houston-based middle market private equity firm.

Headquartered in Montreal, Quebec, Dectron is a global provider of highly-engineered custom and semi-custom dehumidification, air quality and energy recovery solutions primarily for indoor pools.  “Dectron is a strong addition to Specified Air’s broad portfolio of products that provide solutions across a wide variety of commercial and industrial HVAC needs,” said Charley Brown, CEO of Specified Air Solutions. The company serves a multitude of market applications including manufacturing facilities, warehouses, educational facilities, commercial buildings, lodging facilities, health care facilities, food processing plants and many more.

“The addition of Dectron is a part of Sterling’s targeted initiative to grow Specified Air by adding complimentary HVAC solutions,” said John Hawkins, a Partner at The Sterling Group. “We look forward to continuing to grow the business organically and through acquisition.”

Sterling acquired Specified Air Solutions (formerly Roberts-Gordon) in 2014 with the intention of growing and expanding the company’s ability to provide niche, high performance HVAC solutions to its customers.

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 $750 million. Sterling has sponsored the buyout of 48 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management.  For further information, please visit www.sterling-group.com.



Acquisition

Houston, TX June 20, 2016

The Sterling Group Completes the Simultaneous Acquisitions of North American Industrial Services and Evergreen Industrial Services to Form New Platform

The Sterling Group, a private equity firm based in Houston, Texas, announced the simultaneous acquisitions of North American Industrial Services (“North American”) and Evergreen Industrial Services (“Evergreen”). The combination of the two businesses will form a new leader in industrial cleaning and related specialty cleaning services.

Headquartered in Ballston Spa, New York, North American serves a diverse set of end markets with a strong geographic presence in the Northeast, Midwest, and Rocky Mountain regions. Headquartered in La Porte, Texas, Evergreen is a leader in the Texas and West Coast petrochemical, refining, and midstream end markets. North American founders, Frank and Tim Zilka, and Evergreen founder Jon Hodges will continue to run their respective businesses and have meaningfully reinvested in the new company.

“Frank and Tim Zilka and Jon Hodges have built exceptional businesses that will be even stronger as one organization,” said Kevin Garland, a Partner at The Sterling Group. “Together, with the addition of several tenured industry executives, we will execute on our collective vision to continue to grow organically and into new markets, offering an expanded ability to serve the new company’s diverse customer base across the United States.”

Mark Neas, former President of Brand Energy Solutions has been named CEO of the new company. “Through the combination of these two leading companies, we will build upon the strong market presence, reputation, and history of growth of both companies,” said Mark Neas. “Our larger combined company, supported by Sterling’s partnership, will provide us access to the necessary resources to support this exciting next phase of growth for our business.” Phil Hawk, former CEO and continuing Executive Chairman of TEAM Inc. (NYSE: TISI) has been named Executive Chairman of the new company.

Sterling has deep experience partnering with management teams in the industrial service sector. Past investments include HydroChem, Hudson and B&G Crane.

 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 $750 million. Sterling has sponsored the buyout of 48 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.3 billion of assets under management.  For further information, please visit www.sterling-group.com.



Acquisition

Houston, TX June 07, 2016

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires FleetMind

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of FleetMind Solutions, Inc. (“FleetMind”). This marks Safe Fleet’s seventh acquisition during Sterling’s ownership.  Safe Fleet is a leading supplier of safety components for fleet vehicles.

Based in Montreal, Canada, FleetMind delivers the waste industry’s leading “smart truck” solution – onboard computing (OBC) systems that enable  waste and recycling fleets to link their drivers and vehicles to business operations in real-time to ensure improved safety, productivity, sustainability and customer service. FleetMind solutions have been successfully installed in thousands of refuse collection vehicles across North America, providing unprecedented real-time information to drivers and dispatchers about a truck’s load-weight, route status, service completion, vehicular telemetry, driver activities and more. As a result, FleetMind-powered fleets enjoy optimized safety, total visibility into route progress, greater driver accountability, improved customer service, and vastly improved fuel efficiencies.

“We are excited to welcome FleetMind into the Safe Fleet family.  This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles,” said John R. Knox, President & CEO of Safe Fleet.  “The addition of FleetMind expands Safe Fleet’s growing position in fleet management software and hardware for specialty fleet vehicles.  The FleetMind product line is complementary to Safe Fleet’s existing fleet management products and expands Safe Fleet’s penetration in the waste and recycling market.”

FleetMind is the company’s fourth acquisition in the video and telematics sector, an area of rapid growth for Safe Fleet. “Safe Fleet has doubled in size during its partnership with Sterling, and we remain focused on continued organic and acquisition related growth,” said Gary Rosenthal, a Partner at The Sterling Group. “Additions like FleetMind will further our ability to offer a full suite of safety solutions to our wide range of fleet customers.”

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide increased functionality and integrated solutions for fleet vehicle manufacturers and operators around the world.  These brands serve five major markets including: emergency services, bus and rail, truck and trailer, work truck, and industrial.  With over 1000 employees, the Safe Fleet family of brands operates almost 600,000 square feet of manufacturing space and targets markets with increasing demand for operator, passenger, and pedestrian safety.  For more information about Safe Fleet please visit www.safefleet.net.

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 $750 million. Sterling has sponsored the buyout of 47 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.3 billion of assets under management.  For further information please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.



Acquisition

Houston, TX May 20, 2016

Safe Fleet, A Portfolio Company of The Sterling Group, Acquires Rear View Safety

The Sterling Group, a private equity firm based in Houston, Texas, announced that its portfolio company, Safe Fleet, has completed the acquisition of Rear View Safety (“RVS”). This marks Safe Fleet’s sixth acquisition during Sterling’s ownership. Safe Fleet is a leading supplier of safety components for fleet vehicles.

Based in Brooklyn, New York, Rear View Safety is one of the fastest growing providers of back up camera systems and video-based road safety solutions. Rear View Safety has been instrumental in driving the rapid adoption of video systems in commercial fleets including government fleets, recreational vehicles, truck, trailer, commercial van, construction, emergency, bus and shuttle, agriculture and industrial vehicles. Rear View Safety delivers outstanding quality, value and customer satisfaction.

“We are delighted to welcome the Rear View Safety business into the Safe Fleet family. This acquisition supports our vision to build the leading global provider of safety solutions for fleet vehicles,” said John R. Knox, President and CEO of Safe Fleet. “The addition of Rear View Safety expands Safe Fleet’s leadership position in specialty video products for fleet vehicles in North America and one of the top suppliers worldwide. The RVS product line is complementary to Safe Fleet’s existing video products and positions Safe Fleet as a leading video supplier in all of its fleet end markets.”

“Safe Fleet will continue to pursue strategic growth across the fleet vehicle market, expanding our product offering both organically and through acquisition,” said Gary Rosenthal, a Partner at The Sterling Group. “The company has doubled in size during its partnership with Sterling, and with that has come the expanded ability to serve our important fleet customers.”

About Safe Fleet

Headquartered in Belton, MO, Safe Fleet owns a portfolio of brands that provide increased functionality and integrated solutions for fleet vehicle manufacturers and operators around the world. These brands serve five major markets including: emergency services, bus and rail, truck and trailer, work truck, and industrial. With over 1000 employees, the Safe Fleet family of brands operates almost 600,000 square feet of manufacturing space and targets markets with increasing demand for operator, passenger, and pedestrian safety. For more information about Safe Fleet please visit www.safefleet.net.

 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 $750 million. Sterling has sponsored the buyout of 47 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.3 billion of assets under management.  For more information, please visit www.sterling-group.com.

Past performance is no guarantee of future results and all investments are subject to loss.



Team Additions

Houston, TX May 20, 2016

The Sterling Group Announces the Addition of Sreenu Tadavarthy as Senior Vice President of Business Development

The Sterling Group, a middle market private equity firm based in Houston, announced the addition of Sreenu Tadavarthy as Senior Vice President of Business Development. Sreenu is based in Chicago and will lead the firm’s origination and deal sourcing activities within the Midwest. He will also support the firm’s broader sourcing effort by assisting in the development of investment themes and working with executives seeking to partner with private equity.

Sreenu possesses over 20 years of M&A and corporate finance experience gained at various investment banks, including Bear, Stearns & Co. Inc., CIBC Oppenheimer Corp. and most recently TTK Partners, LLC, a boutique advisory firm that he co-founded and served as Partner for 10 years. “We welcome Sreenu’s broad base of relationships and transaction experience with industrial companies,” said Jim Apple, Managing Director. “Sreenu’s long tenure advising on corporate divestitures will be a great benefit to Sterling’s targeted sourcing efforts.”

Sterling is currently investing out of its fourth fund with $1.28 billion in commitments. Sterling has completed 23 corporate-carve-outs and has partnered with 14 family businesses since its founding in 1982. Sterling focuses on implementing an operational investment strategy to fundamentally grow and improve North American based industrial businesses.

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 $750 million. Sterling has sponsored the buyout of 47 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has $2.3 billion of assets under management. For further information, please see our website: www.sterling-group.com



Acquisition

Houston, TX January 04, 2016

Dexter Axle, a Portfolio Company of The Sterling Group, Completes the Acquisition of AL-KO Vehicle Technology to Form DexKo Global Inc.

The Sterling Group, a middle market private equity firm, today announced that its portfolio company, Dexter Axle, has completed the acquisition of AL-KO VT. The combined companies have been renamed DexKo Global Inc. Today’s acquisition and the formation of DexKo Global Inc. creates the global leader in trailer axle and chassis supply with sales approaching nearly $1 billion.

AL-KO is Dexter’s fourth acquisition under Sterling ownership and its third corporate carve-out. Dexter completed the carve-out from the family-owned AL-KO Kober SE, who will remain a significant shareholder in DexKo Global Inc.

Headquartered in Kötz, Germany, AL-KO VT is the leading European designer and manufacturer of trailer axles, trailer and caravan components, chassis and motorized chassis. The company operates from 20+ locations around the world, including in Europe, Australia, South Africa, and China.

Dexter is the clear market leader in quality, innovation and service in North America. The addition of Dexter’s European counterpart will result in an even stronger organization. The two companies will be able to leverage shared resources and technology, as well as the advantages of a global footprint and significantly expanded scale. Dexter and AL-KO VT will remain under their current brands as market leaders in their respective geographies.

“The addition of AL-KO VT is transformative for Dexter, nearly doubling the company’s size and significantly expanding its company’s geographic footprint,” said Kevin Garland, Partner at The Sterling Group. “We look forward to executing on the operational and strategic opportunities that exist at DexKo Global Inc.”

Fred Bentley, Dexter board member and former CEO of Maxion Wheels, has been named President and CEO of DexKo Global Inc. “I am excited by the opportunity to lead and bring together two world class organizations. We will focus on continuing to lead with great technology and customer service and to expand our strong market leadership positions. It is truly an exciting time for this new organization and we will use our collective strengths for the benefit of all of our customers, employees, suppliers and stakeholders,” said Fred Bentley. Adam Dexter will continue in his current responsibilities as President and CEO of the US-based Dexter.

About The Sterling Group, L.P.

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 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has $2.3 billion of assets under management. Current portfolio companies include CST Industries, Express, Saxco International, DexKo Global Inc., Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

Past performance is no guarantee of future results and all investments are subject to loss.



Sales

Houston, TX October 02, 2015

The Sterling Group Completes the Sale of Universal Fiber Systems to HIG

The Sterling Group, a private equity firm based in Houston, Texas, announced that it has completed the sale of Universal Fiber Systems (“UFS”) to funds managed by HIG.

Headquartered in Bristol, Virginia, UFS is a leading manufacturer of high-performance, specialty synthetic fibers for niche segments of the commercial carpet, transportation carpet and specialty apparel industries. During Sterling’s ownership, EBITDA has grown by over 70% based on a series of strategic and operational initiatives focused on market share growth, international expansion and cost savings and other margin improvement programs. This growth was accomplished in the face of a difficult market environment for nearly half of the company’s business serving commercial construction customers.

“Sterling was fortunate to partner with such a strong management team, led by CEO Marc Ammen, to drive substantial EBITDA growth in the face of significant headwinds in UFS’ commercial construction end market,” said Kent Wallace, Partner at The Sterling Group. “The team’s tireless execution on a set of strategic and operational initiatives resulted in strong performance in a difficult environment.”

“Sterling’s support was instrumental in achieving new levels of profitability at our company,” said Marc Ammen, CEO. “We look forward to partnering with HIG to continue to grow the business and serve our loyal customers.”

Sterling focuses on implementing its operational investment strategy to fundamentally grow and improve North American based industrial businesses. The Sterling Group was advised on the sale by Baird and Bracewell & Guiliani.

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 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management. Current portfolio companies include CST Industries, Express, Saxco International, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

Past performance is no guarantee of future results and all investments are subject to loss.

 



Sales

Houston, TX October 01, 2015

The Sterling Group Completes the Sale of Liqui-Box to Olympus Partners

The Sterling Group, a private equity firm based in Houston, Texas, announced that it has completed the sale of Liqui-Box to funds managed by Olympus Partners. Sterling acquired the business from DuPont in 2011, its fourth carve-out from DuPont. Sterling has completed 22 corporate carve-outs since its inception in 1982.

Headquartered in Richmond, Virginia, Liqui-Box is a leading global player in the bag-in-box industry. The company designs and supplies liquid packaging systems to meet filling and dispensing needs across numerous end markets, including dairy, beverage, food, and wine.

Sterling engineered the complicated separation of the global Liqui-Box business from DuPont, established a new corporate headquarters, and implemented a wide variety of systems and processes so that the business could operate on a standalone basis. “Sterling’s long history executing corporate carve-outs, the first of which occurred in 1984, was a critical factor in our success with the Liqui-Box investment,” said Greg Elliott, Partner at The Sterling Group.

Sterling and management, led by CEO Ken Swanson, drove substantial organic EBITDA growth of over 45% during Sterling’s ownership period, but just as important established an independent company that will serve as a platform for strong future growth. “The company has improved operations, expanded into new geographies and end markets, and successfully reached new customers. The result is new levels of growth and profitability at Liqui-Box,” said Ken Swanson, CEO.

Sterling focuses on implementing its operational investment strategy to fundamentally grow and improve North American based industrial businesses. The Sterling Group was advised on the sale by Harris Williams & 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 46 platform companies and numerous add-on acquisitions for a total transaction value of over $10.0 billion. Currently, Sterling has over $2.4 billion of assets under management. Current portfolio companies include CST Industries, Universal Fiber Systems, Express, Saxco International, Dexter Axle, Safe Fleet, Specified Air Solutions, American Bath Group and ProcessBarron.

Past performance is no guarantee of future results and all investments are subject to loss.