Sky Island Closes Another Platform for Debut Fund
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Sky Island Closes Another Platform for Debut Fund

The buy of USA is the fourth investment made by Sky Island’s debut fund and follows the acquisitions of Polished Metals, Valley Forge Flag, and SkyMark Refuelers

USA’s products include piping isolation and testing products, tube plugs, flow measurement orifice plates, and heat exchanger tools

SOURCE: USA Industries

Sky Island Capital has acquired USA Industries, a manufacturer of equipment used in process manufacturing facilities.

USA’s products include piping isolation and testing products, tube plugs, flow measurement orifice plates, and heat exchanger tools. The company’s customers, including many Fortune 100 companies, operate oil and gas refineries, chemical and power plants, paper and pulp mills, and wastewater treatment facilities.

USA Industries, led by CEO Tracy Sue, was founded in 1959 and is headquartered in South Houston, Texas. Sky Island’s majority investment in USA was made alongside the company’s second-generation founding family and closed in December 2021.

“We are thrilled to enter into this partnership with the Sky Island team,” said Mr. Sue. “Sky Island’s extensive operational and financial resources will allow us to accelerate our growth plan and better serve our customers.”

“USA has a reputation for providing high-quality innovative products and best‐in‐class service to its customers,” said Jack Waterstreet, the managing partner of Sky Island. “With Sky Island’s support, we believe the company is exceptionally well‐positioned to continue expanding its product and solutions offering to best serve its customer base.”

The buy of USA is the fourth investment made by Sky Island’s debut fund and follows the acquisitions of Polished Metals, a New Jersey-based polisher and supplier of architectural and ornamental metals (February 2020); Valley Forge Flag Company, a Pennsylvania-headquartered maker of branded, “Made in the USA” American flags, military flags, and state flags (June 2021); and SkyMark Refuelers, a Missouri-headquartered maker of custom work trucks used in the fuel delivery sector (December 2021).

Dallas-based Sky Island invests from $10 million to $50 million of equity in North America-based manufacturing companies that have revenue of $10 million to $200 million and EBITDA of $5 million to $15 million. Sectors of interest include aerospace and defense; auto and transportation; building products; consumer products; food and beverage; industrial products; metals; packaging; and specialty chemicals.

© 2022 Private Equity Professional | February 1, 2022

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