Pfingsten Partners has acquired Quality Valve, a distributor of OEM replacement parts for safety and relief valves.
Quality Valve is a national provider of safety and relief valve parts to certified valve repair companies. The company maintains an expansive inventory of new OEM spare parts from manufacturers such as Dresser, Consolidated, Crosby, Anderson-Greenwood and Farris. Quality Valve has a temperature controlled warehouse facility and headquarters located in Mobile, AL (www.qualityvalves.com).
Pfingsten’s purchase of Quality Valve was completed with equity from its fifth fund, Pfingsten Partners Fund V LP, which closed in February 2016 with $382 million of capital. Quality Valve becomes the fund’s sixth platform investment. The fund is targeting 14 platforms.
Pfingsten partnered on this investment with the company’s founder, Raymond McCaffrey, III, who has maintained an equity ownership position in the company. “Mr. McCaffrey has built an outstanding business that uses industry and product expertise to take a consultative approach to solving its client’s problems. That approach, combined with best-in-class service and execution, has positioned the company as a market leader in its industry,” said Ken Hessevick, a Principal at Pfingsten. “We are thrilled to invest in Quality Valve’s people and infrastructure to accelerate growth with new and existing customers.”
“We are eager to partner with Pfingsten and take Quality Valve to the next level,” said Mr. McCaffrey. “Pfingsten’s operational capabilities, conservative capital structure and prior experience in the valve industry will provide our company with additional resources to scale our customer-centric value proposition.”
Pfingsten invests in middle-market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million, revenues from $20 million to $150 million, and EBITDA between $3 million and $12 million. Since founding in 1989, Pfingsten has acquired 125 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with additional representative offices in India and China (www.pfingsten.com).
© 2018 Private Equity Professional | August 1, 2018