Wynnchurch Capital and Comvest Partners have sold their portfolio company USP Holdings Inc. (US Pipe) to Forterra Building Products. Wynnchurch and Comvest acquired US Pipe through a divestiture from Mueller Water Products in April 2012.
US Pipe is a manufacturer of ductile iron pipe products, fittings and joint restraints that are used in drinking water and wastewater systems. Customers include distributors, residential and commercial construction contractors, utilities, and government municipalities. The company is headquartered in Birmingham, AL (www.uspipe.com).
US Pipe was founded in 1899 as the United States Cast Iron Pipe and Foundry Company and at that time was responsible for approximately 75% of the production capacity of cast iron pipe in the United States.
Over the past four years, Wynnchurch and Comvest have grown US Pipe both organically and through five add-on acquisitions. “Wynnchurch and Comvest have been valued partners as we have continued to build on our position as the leading provider of ductile iron pipe products in the US,” said US Pipe CEO Paul Ciolino. “Each firm has significant investment and operational expertise, which helped management grow the business, drive continuous improvement and execute on our strategy. In addition, Wynnchurch and Comvest were critical in leading and executing several strategic acquisitions furthering our efforts in becoming a full-service, world class organization.”
Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, business and industrial services, energy and power services, logistics, transportation and value-added distribution. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Detroit and Toronto (www.wynnchurch.com).
Comvest Partners provides debt and equity to middle-market companies. For debt investments the firm will invest from $2 million to $20 million per transaction in companies with $10 million to $200 million of revenue that have positive or negative EBITDA. For equity investments the firm will invest from $25 million to $100 million of equity per transaction in companies with $15 million to $500 million of revenue that have positive or negative EBITDA. Comvest is based in West Palm Beach (www.comvest.com).
Forterra Building Products is a provider of infrastructure and water management products and a manufacturer of concrete and clay building products. Company divisions include Forterra Pipe & Precast, Forterra Pressure Pipe, Forterra Structural & Specialty Products, and Forterra Brick. Forterra employs approximately 5,400 people and has more than 125 facilities. The company is based in Irving, TX (www.forterrabp.com).
Moelis & Company (www.moelis.com) was the financial advisor to US Pipe and Foley & Lardner (www.foley.com) provided legal services.
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-19-16
