Bertram Sells Flow Control Group to KKR

KKR has agreed to acquire Flow Control Group (FCG) from Bertram Capital. FCG is a distributor of flow control and industrial automation products,

FCG’s products include pumps, filtration, air compression, dehydration and purification equipment; instrumentation and controls; sealing, tubing, and hoses; and other related products. The company also provides various on-site services including repair, calibration and installation.

 Charlotte-based FCG has more than 10,000 customers and 47 regional distribution and service centers located throughout the United States and Canada. The company, led by CEO David Patterson, was founded in 2014 and has completed 21 acquisitions since its inception including 3 add-ons under Bertram’s ownership.

Bertram acquired its interest in FCG in January 2019 from AEA investors which had acquired the company in February 2015.

“We are fortunate to have had the opportunity to partner with FCG, under the exceptional leadership of David Patterson, to achieve our shared vision of creating a leading independent player in the industry,” said Kevin Yamashita, a partner at Bertram Capital. “Working closely with the FCG team, we exceeded our growth plan through strategic add-on acquisitions, organic growth initiatives, the addition of key executive talent, and operational improvement.”

KKR is acquiring FCG through its KKR Americas XII Fund which closed in March 2017 with $13.9 billion of capital.

“Flow Control Group stands out for their proven ability to be a strategic partner and consultative, technical resource for customers’ critical flow control and industrial automation product needs,” said Josh Weisenbeck, a partner at KKR. “We are excited to work together with David Patterson and the entire team at Flow Control Group to further expand the company’s reach while remaining an excellent partner to their OEM suppliers and continuing to be a value-added team member for their customers.”

Bertram invests in middle-market business services, consumer, industrial and manufacturing companies that have revenues from $25 million to $250 million and EBITDA of $5 million to $30 million. The firm is headquartered south of San Francisco in San Mateo, California.

KKR (NYSE: KKR) makes private equity, fixed income, and other investments in companies in North America, Europe, Asia, and the Middle East. KKR was founded in 1976 and in addition to its New York headquarters has offices in 19 cities around the world.

R.W. Baird was the financial advisor to Bertram on this transaction and Deloitte advised KKR.

© 2021 Private Equity Professional | February 18, 2021

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