BC Partners and The Carlyle Group today announced an agreement to acquire Hamilton Sundstrand Industrial, a manufacturer of pumps and compressors used in the industrial, infrastructure and energy markets, from United Technologies Corporation for $3.46 billion.
“Hamilton Sundstrand Industrial is a world-class platform and we are excited about the company’s significant growth prospects, including in key emerging markets,” said Raymond Svider, Co-Chairman and Managing Partner of BC Partners.
The transaction is expected to close in the fourth quarter of 2012.The investment in Hamilton Sundstrand will be funded in an equal partnership with equity from BC Partners and The Carlyle Group as well as third-party debt provided by a banking consortium. External debt financing commitments have been provided by Citigroup, Credit Suisse, Deutsche Bank, Morgan Stanley, RBC Capital Markets and UBS.
Hamilton Sundstrand comprises three businesses as follows: Sundyne is a manufacturer of high-speed pumps and compressors used principally for mission-critical, down-stream oil and gas and chemical/industrial infrastructure; Milton Roy is a provider of metering pumps used in chemical, oil and gas and water treatment applications; and Sullair is a global manufacturer of rotary screw air compressors used to power air-driven industrial equipment and tools used in the industrial manufacturing and the energy, mining and chemicals industries. Hamilton Sundstrand operates 19 manufacturing facilities in the U.S., France, China, Australia, the U.K., Spain and India and is headquartered in Windsor Locks, CT (www.hamiltonsundstrand.com).
BC Partners has $16.4 billion of capital under management and invests in companies in a variety of sectors that have significant European operations. The firm has offices in London, Hamburg, Milan, New York and Paris (www.bcpartners.com).
The Carlyle Group invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. The firm is based in Washington, DC (www.carlyle.com).
Carlyle and BC Partners have a history of successful industrial investments including Carlyle’s ownership of Allison Transmission, Rexnord Corporation and AxleTech International and BC Partners’ investments in Brenntag, SGB-SMIT Group and Interpump.
