Windjammer Capital Investors has sold JWC Environmental to Sulzer Ltd. at an enterprise value of $215 million.
JWC Environmental is a provider of solids reduction and removal products such as grinders, screens, and dissolved air flotation systems that are used by municipal, industrial and commercial wastewater processors. JWC has a growing and recurring aftermarket business that provides parts and services to a large installed base built up over the last 45 years. The company was founded in 1973 and is headquartered near Los Angeles in Santa Ana, CA (www.jwce.com).
JWC is best known for its legendary Muffin Monster sewage grinder. Over 25,000 Muffin Monsters are installed globally to grind up the solid debris that ends up in wastewater pump stations, pipelines and sludge lines. The dual-shafted grinder protects pumps and downstream systems from clogging and potential damage.
Windjammer acquired JWC from its founding family in August 2011 through its $575 million third fund. During its ownership term, Windjammer added senior managers to JWC’s leadership team and supported the company’s expansion into industrial products, increased product development expenditures, completed two add-on acquisitions, and made investments to improve the company’s supply chain and operating efficiency. Over the ownership term, JWC’s employment grew from 185 to approximately 230.
The two add-on acquisitions completed by JWC were the November 2015 buy of IPEC Consultants, a manufacturer of solids/liquid separation products for wastewater and specialty industrial process liquids; and the January 2017 buy of FRC Systems International, a maker of dissolved air flotation systems used in a variety of wastewater applications in the food and beverage, meat and poultry processing, and oil and gas industries.
“JWC’s market leadership position in a stable municipal market was attractive at the time of our initial investment, and served as a solid base to grow the company across geographies, product offerings, and end market applications,” said Jeff Miehe, Managing Director at Windjammer. “Windjammer helped JWC significantly transform during the past six years, and the company is well positioned to continue on its growth trajectory with the support of Sulzer.”
Sulzer is an industrial engineering and manufacturing firm headquartered near Zurich in Winterthur, Switzerland. The company has more than 15,000 employees and had annual revenues of approximately $3 billion in 2017 (www.sulzer.com).
The sale of JWC at an enterprise value of $215 million is equal to approximately 10x JWC’s 2018 forecasted EBITDA. The buy of JWC allows Sulzer to grow its wastewater treatment revenues through the addition of complementary equipment as well as to improve its access to the municipal and industrial wastewater market in North America. In addition, Sulzer will support JWC’s geographic expansion into markets in Europe, the Middle East and Africa (EMEA) and Asia. JWC will operate as part of Sulzer’s Pumps Equipment division and will continue to be headquartered in Santa Ana.
Windjammer makes control investments of $50 million to $200 million in middle market businesses with EBITDAs from $10 million to $50 million. Sectors of interest include niche manufacturing, value-added distribution and business services. Windjammer is currently investing from its $726 million Windjammer Senior Equity Fund IV, which closed in March of 2013. The firm was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).
“Windjammer provided valuable support and resources to assist JWC as we executed on our long-term strategic plan to transform the company and better serve both new and existing customers. Windjammer thinks and acts like both operators and investors, and encouraged and supported our strategic investments,” said Ken Biele, CEO of JWC.
© 2018 Private Equity Professional | January 18, 2018
