PE Weekly: Industrials and Manufacturing Continue to Shine

Industrials and manufacturing have consistently shined through a tough M&A environment, and this week the sector continues to show its strength. Read more about the latest middle-market dealmaking news below.

Platform Investments and Acquisitions

Clarion Capital Backs Public Relations Company Narrative Strategies. Narrative Strategies, a public affairs and corporate reputation agency, has announced it received a strategic investment from New York-based private equity firm Clarion Capital Partners. Narrative said its executive partners will retain a significant ownership stake in the business. In its announcement, the company pointed to Clarion’s expertise in media, entertainment and technology, noting the investment will help Narrative expand its offering and enter into new markets.

Borgman Capital Invests in Technical Products. Borgman Capital Partners, a lower middle-market private equity firm, announced its recent investment in Technical Products, a chemical distribution company based in Cleveland, Ohio. Technical Products operates as an intermediary between chemical suppliers and manufacturers for a variety of products. The acquisition marks Borgman’s 17^th acquisition since launching the firm in 2017.

CIVC Partners Acquires Highstreet IT Solutions. Middle-market private equity firm CIVC Partners has announced its acquisition of Highstreet IT Solutions. Highstreet is a cloud-focused implementation and managed service provider for Oracle, offering solutions that range from cloud migration to long-term managed services. The investment expands CIVC’s footprint within IT services.

Levine Leichtman Acquires USA Water. Levine Leichtman Capital Partners, a private equity firm based in Los Angeles, announced its acquisition of USA Water this week. The investment follows warren Equity Partners’ exit of the business. USA Water provides operations and maintenance services for water and wastewater systems in the Southeastern U.S.

HGGC Backs Tech Consultant Rimkus. Rimkus Consulting Group, an engineering and technical consulting firm, celebrated its 40-year anniversary this month with the announcement of new growth investment from middle-market investment firm HGGC. A press release said Rimkus plans to expand its offerings with HGGC’s support. The company services corporations, law firms, insurance carriers, government agencies and more.

Add-Ons

ATL Partners’ Aero Accessories Acquires Aircraft MRO Services Business. Aero Accessories, a provider of component maintenance, repair and overhaul (MRO) services for the aerospace sector, announced its acquisition of AOG Accessories. Together, the combined business will expand its footprint in the area of complex component repair for fuel, hydraulic, pneumatic and power generation systems. Aero Accessories is a portfolio company of ATL Partners, an aerospace, transportation and logistics-focused private equity firm.

GHK Capital’s WSB Adds AE Engineering. WSB, an infrastructure engineering and consulting firm, and a portfolio company of middle-market private equity firm GHK Capital, announced this week its acquisition of AE Engineering. The investment expands its transportation infrastructure engineering capabilities and strengthens WSB’s presence in the southeast.

Strategics

HASA Acquires Water Treatment Business from FSTI. HASA, a producer and distributor of water treatment products, has announced its acquisition of Chem Eleven Products, a salt-to-bleach manufacturing site operator servicing municipal and commercial water treatment and manufacturing clients. In a statement, HASA CEO Chris Brink said the investment supports its growth strategy and solidifies its presence in Texas. HASA acquired the company from its previous parent company, FSTI, whose CEO Scott Trussell will join HASA in an executive advisory role.

Cloyes Gear Acquires Automotibe Tensioners. Automotive aftermarket systems and components designer Cloyes Gear & Products announced its acquisition of Automotive Tensioners (ATI), according to a press release. ATI suppliers front-end accessory drive pulley and tensioners to the automotive aftermarket. The investment marks Cloyes Gear’s second acquisition in the last four months.

Apryse Acquires LEAD Technologies. Apryse, a document processing technology provider, acquired LEAD Technologies, it revealed in a press release this week. LEAD develops applications across all major platforms and programming languages using artificial intelligence. A press release said the investment expands Apryse’s capabilities within the healthcare sector.

Exits

Borgman Capital Exits Equipment Rental Company. In addition to its acquisition of Technical Products, Borgman Capital also announced the exit of equipment rental company Aerial Work Platforms. Reports in Kenosha News said AWP specializes in aerial lift equipment rental, service and sale. The company was acquired by the private equity firm in. December 2020.

BGL Exits Crest Foods to Hardwood. Brown Gibbons Land & Company announced the sale of Crest Foods to lower middle-market investment firm Hardwood Private Equity. In addition to the sale of the company, BGL facilitated a sale-leaseback of the company’s contract packaging, distribution and warehousing facility.

Blue Point Capital Exits DGB Holdings to Charger Investment Partners. Blue Point Capital Partners announced the preparation of the sale of portfolio company SBG Holdings, a holding company of subsidiary trade brands across the maintenance, conversion and placement of concrete flooring market. SBG is the parent company of SASE Company and Bartell Global. The private equity firm, which first invested in the company in 2017, said it is selling the business to Charger Investment Partners.

Insights

CORE Industrial Partners Closes Two Funds at $887 Million. CORE Industrial Partners has announced the closing of two new funds for a combined $887 in total capital commitments. The private equity firm focuses on manufacturing, industrial technology and industrial services/ Its flagship fund, CORE Industrial Partners Fund III, secured $685 million in funding, while its new fund CORE Industrial Services Fund I secured $202 million.

Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org.