Wind Point Partners has entered into agreements to acquire and merge Clock Spring Company, a portfolio company of Spindrift Equities, and Neptune Research, a portfolio company of Palm Beach Capital.
Clock Spring and Neptune Research (NRI) are providers of infrastructure repair and rehabilitation products. When the transactions are completed, the combined company will be named ClockSpring|NRI.
Houston, TX-based Clock Spring and Riviera Beach, FL-based NRI are both manufacturers of composite materials, insertion valves, and gaskets that are used to maintain, rehabilitate, and construct pipelines, natural gas distribution lines, industrial pipe works, electrical grids, and civil structures.
The companies’ pipe repair systems and inline insertion valves are in use in more than 75 countries and include the brands Clock Spring, Syntho-Glass XT, Scar-Guard, Contour, DiamondWrap, and AVT EZ Valve (www.cs-nri.com) (www.clockspring.com) and (www.neptuneresearch.com).
“We spent significant time canvassing the critical infrastructure repair industry for a quality business to establish a platform investment,” said Alex Washington, a managing director at Wind Point. “With Clock Spring and NRI, we happened to find two quality and complementary organizations that are a strong fit with our strategy. We are excited for the opportunity to partner with the two companies and look forward to supporting them via new products and capabilities, as well as through add-on acquisitions.”
Palm Beach Capital acquired NRI in May 2017 and will not hold an equity position in the newly formed ClockSpring|NRI, while former Clock Spring lead sponsor, Spindrift Equities, will continue as an investor in the new company. Clock Spring CEO Matthew Boucher will lead the combined company, while Christopher Lazzara, NRI’s long-time CEO will retain an equity position and join the new company’s board of directors.
Antares, Hartford Investment Management Company, Solar Capital, Northwestern Mutual Capital, and Nuveen Private Markets have committed debt financing to support this transaction.
Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII LP, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and marks the largest fund closing in Wind Point’s history. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).
© 2019 Private Equity Professional | January 24, 2019