Chromalox manufactures electric heat and control products, including heating components, immersion heaters, circulation systems, heat transfer systems, boilers, industrial and comfort air heating, heat trace cables, sensors, and precision electronic controls. Chromalox’s product catalog, known as the Big Red Book, is the industry’s “go-to” technical resource for engineers and technicians, with thousands of pages of product information, technical reference guides, and design tutorials. The company has multiple manufacturing, engineering, warehousing, and sales locations in North America, Europe, and Asia. Chromalox was founded in 1918 and is headquartered in Pittsburgh (www.chromalox.com).
In connection with this transaction, the senior management team of Chromalox has increased its ownership in the company and will retain a substantial stake in the business going forward.
“We are excited to have found a partner with the resources and experience to help take Chromalox to the next level,” said Scott Dysert, CEO of Chromalox. “Irving Place Capital’s deep expertise in branded industrial businesses will allow Chromalox to build on its strong operating platform and accelerate the company’s growth. We look forward to working closely with Irving Place Capital to realize our aggressive goals for building the business organically and through strategic acquisitions.”
“Chromalox has a distinguished history of leadership in engineering value-added heating solutions that are tailored to the needs of its customers across many diverse industries,” said Douglas Korn, a Senior Managing Director of Irving Place Capital. “With its impressive culture of productivity, innovation, and customer service, Chromalox has tremendous growth potential. We look forward to working with the company to continue to expand both in North America and internationally to better serve its customers and markets.”
A consortium led by GE Capital and composed of existing lenders to Chromalox provided debt financing for the transaction.
Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 56 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 1-7-13