Arlington to Acquire Kreisler Manufacturing
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Arlington to Acquire Kreisler Manufacturing

kreisler nf1United Flexible, a portfolio company of Arlington Capital Partners, has agreed to acquire publicly traded Kreisler Manufacturing Corporation for $18 per share or approximately $33.6 million.

kreisler nf22Kreisler (OTC: KRSL) is a manufacturer of precision metal components and assemblies used in commercial and military aircraft engines, and industrial gas turbines.  The company’s tubular products are primarily used to transport fluids, air, oil, and gas to various parts of the aircraft, aircraft engine, or turbine. Customers include large engine manufacturers such as General Electric, Rolls-Royce and Pratt & Whitney, as well as Tier-1 suppliers such as Parker Hannifin and Unison Industries. Kreisler is led by Michael Stern, President and Chief Executive Officer, and is headquartered north of Newark in Elmwood Park, NJ (www.kreisler-ind.com).

united flexible nf22United Flexible designs and manufactures products that are used for the transfer of fluids and gases in extreme environments. Products include braided metal, fluoropolymer, polytetrafluoroethylene (PTFE – aka Teflon) and composite hoses, precision bellows, and expansion joints assemblies. The company sells its products to OEMs and distributors that are active in the aerospace & defense; satellite; power generation; general industrial; oil & gas; cooling; and transportation sectors. United Flexible has manufacturing operations near Chicago in Romeoville, IL (headquarters); Houston, TX; Merthyr Tydfil, UK (near Bristol); Stockholm, Sweden; and Rotterdam, The Netherlands (www.unitedflexible.com).

Peter Manos nf2“We are excited about how well Kreisler fits our acquisition strategy of building one of the leading suppliers of high pressure and extreme temperature conduit systems,” said Peter Manos, a Managing Partner at Arlington Capital. The buy of Kreisler comes on the heels of United Flexible’s acquisition in February of Fulton Bellows, a Knoxville-based manufacturer of bellows and thin-walled metal components that are used in gas and fluid control systems (www.fultonbellows.com).

Arlington Capital has $1.5 billion of committed capital and invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology, aerospace & defense, healthcare, and business services & software. Arlington Capital is based in Chevy Chase, MD (www.arlingtoncap.com).

“In combination with Kreisler, United Flexible is positioned as one of the few Tier 1 suppliers that offer both fixed and flexible engineered assemblies for use in high pressure or extreme temperature applications,” said Jesse Liu, a Principal at Arlington Capital.

The transaction is expected to close before the end of June. At closing, Michael Stern, Kreisler’s President and Chief Executive Officer, will join United Flexible’s senior management team as President of Kreisler.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 6-1-16

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