Climax Portable Machine Tools, a portfolio company of Industrial Growth Partners and a manufacturer of portable machine tools and welding systems used in industrial end markets, has acquired the assets of H&S Tool.
H&S Tool is a manufacturer of portable machine tools used for pipe cutting and beveling primarily in repair and maintenance applications in the oil & gas, power generation and other industrial markets. The company sells its products through over thirty sales representatives and distributors located across the United States and in international markets. H&S Tool is led by its President Jeff Howard. The company was founded in 1975 by the father and son team of Tolleif and Mark Hillestad and has a 30,000 sq.ft. facility located near Akron in Wadsworth, OH (www.hstool.com).
Climax Portable Machine Tools, acquired by Industrial Growth Partners in June 2013, is a manufacturer of portable machine tools and welding systems used in the power generation, mining, construction, shipbuilding and general industrial markets. Climax is led by its CEO Tom Cunningham and is headquartered southwest of Portland in Newberg, OR (www.climaxportable.com).
“This acquisition strengthens Climax’s position in the portable machine tool market and adds tremendous diversity to our business around the world,” said Mr. Cunningham. “The transaction also addresses customers’ desires for an independent provider with a full suite of highly engineered and durable portable machine tools, in addition to strengthening our growing rental business globally.”
Industrial Growth Partners (IGP) provides equity capital to lower-middle market manufacturing and manufacturing services companies with revenues of $30 million to $100 million. The firm invests equity in a range of transactions involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations and management buy-ins. IGP was founded in 1997 and is based in San Francisco (www.igpequity.com).
The buy of H&S Tool closed on October 1, 2015 and was supported with an additional equity investment from IGP and management. IGP continues to seek add-on acquisitions for Climax.
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-5-15