Aquilex, the parent company of Aquilex HydroChem, a provider of industrial cleaning services and a portfolio company of Centerbridge Partners, has entered into an agreement to acquire Inland Industrial Services Group, an industrial cleaning company owned by Strength Capital Partners.
Inland Industrial Services Group is an industrial cleaning company serving the refining, chemical processing, pulp and paper, alternative fuels, steel, power, automotive, and airport end-markets in the Gulf Coast and Central United States. The company was founded in 1985 and is based in Detroit (www.teaminland.com).
Aquilex HydroChem is a provider of industrial cleaning services to the petrochemical, refinery, power, and pulp and paper markets. Services include hydroblasting, industrial vacuuming, chemical cleaning and tank cleaning. The company is headquartered in Deer Park, TX (www.hydrochem.com).
Upon closing of the transaction the combination of Inland Industrial and Aquilex will result in a company with annual revenues of approximately $400 million.
HydroChem will finance the acquisition with proceeds from a new credit facility underwritten by General Electric Capital Corporation.
“Since our original investment in HydroChem in February 2012, we have supported the company’s investment in equipment and technology. The company’s management team, led by Gary Noto and assembled under the leadership of our Chairman, Donovan Boyd, has delivered strong performance, and the acquisition of Inland is the culmination of a strategic undertaking aimed at expanding into new end-markets and geographies by leveraging our core competencies,” said Kyle Cruz, Senior Managing Director at Centerbridge.
Centerbridge Partners invests from $50 million to $300 million in US based leveraged buyouts and distressed securities. The firm has $20 billion of capital under management and is based in New York (www.centerbridge.com).
Strength Capital Partners invests in companies that have from $5 million to $20 million of EBITDA and are based throughout the greater Midwest and Central United States. Sectors of interest include manufacturing, distribution, industrial, business and financial services, infrastructure, and consumer products. The firm is based near Detroit in Birmingham, MI (www.strengthcapital.com).
“We thank the Inland leadership team and employees for their service and are thrilled with the transaction. HydroChem is the right owner for the long-term growth of the combined business, and Inland’s specialized capabilities, extensive branch network, diverse customer base and experienced employees are a valuable addition to HydroChem,” said Mark McCammon, Managing Partner of Strength Capital Partners.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-19-13
