Irving Place Capital has agreed to sell its portfolio company Chromalox, a thermal technology company, to Spirax-Sarco Engineering for $415 million in cash. Irving Place acquired Chromalox in December 2012 from Sentinel Capital Partners.
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. The company has 634,000 sq. ft. of manufacturing, engineering, warehousing, and sales locations in North America, Europe, and Asia. Chromalox was founded in 1917 and is headquartered in Pittsburgh (www.chromalox.com).
In 2016 Chromalox had revenues of $201 million and an EBITDA of $43 million. This equates to a valuation multiple of 9.7x for the company.
“Chromalox is a unique, highly diversified company with a deep history as a technology leader. The management team has done an exceptional job and positioned the company for continued success. We wish our management partners and all Chromalox employees the very best as they join Spirax-Sarco,” said Keith Zadourian, a Partner at Irving Place.
Spirax-Sarco Engineering (LSE:SPX) is manufacturer of steam management systems and peristaltic pumps (a type of positive displacement pump which uses flexible tubes and displacement rotors) and associated fluid path technologies. The company serves the food, pharmaceutical, chemical and environmental industries. Revenues in 2016 were approximately $970 million. Spirax-Sarco is based in Cheltenham, UK (www.spiraxsarcoengineering.com).
During Irving Place’s ownership term, Chromalox executed numerous strategic initiatives including investing in new technology platforms, accelerating new product development, expanding into new geographies and enhancing productivity efficiencies. “It has been a pleasure to work with the team at Irving Place Capital. In particular, their support of our growth planning process has enabled Chromalox to develop multiple innovative technologies, without peer in the industry, providing the foundation for future growth,” said Mike Sutter, President and CEO of Chromalox.
Irving Place 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 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).
UBS Investment Bank and Greenhill & Co. were the financial advisors to Chromalox and Irving Place on this transaction.
© 2017 Private Equity Professional | May 26, 2017
