Incline Equity Partners has acquired Industrial Air Flow Dynamics (IAFD), a provider of maintenance services and replacement parts to power plants.
IAFD specializes in designing and replacing expansion joint systems, pipe penetration seals for heat recovery steam generators (HRSG), and HRSG liner plate systems. Other services include plant inspections, engineering support, field installations, and light manufacturing. IAFD’s customers include power plants located across the United States. IAFD is headquartered near Houston in Cleveland, Texas.
“Our partnership with IAFD presents an opportunity to back a best-in-class management team and a business that is well-positioned for growth,” said Victor Martinelli, a managing director at Incline. “It is clear that Ryan and the IAFD team have built a differentiated platform in an attractive, durable market. We look forward to supporting an acquisition strategy to supercharge the company’s service capabilities and enter new geographies.”
Twin Brook was the administrative agent on debt financing to support Incline’s buy of IAFD. Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
In January 2022, the Incline closed Incline Elevate Fund II LP, a $630 million fund that invests exclusively in the lower middle market; and its second fund extension, Incline Ascent Fund LP, with $310 million of capital. Both funds were oversubscribed and substantially exceeded their initial targets. In January 2020, Incline closed its fifth fund, Incline Equity Partners V LP, with $1.2 billion of capital. Through this family of funds, Incline invests in value-added distribution, business services and specialized light manufacturing companies that have enterprise values of $25 million to $750 million.
Earlier this month, Incline acquired Montgomery DME, a California-based provider of durable (repeated use) medical equipment rental services to the hospice market. The company’s products include bed frames, oxygen systems, wheelchairs, bath safety equipment, and soft goods. In June 2022, the firm acquired Raney’s, a Florida -based e-commerce distributor of more than 20,000 SKUs of aftermarket heavy-duty truck parts and accessories. Earlier still, in May 2022 Incline acquired Certified Collision Group (CCG), a Nevada-headquartered provider of support services to the collision repair and auto insurance sector. CCG provides more than 740 independent collision repair shops with business development, vendor management and insurance certifications.
Pittsburgh-based Incline Equity was formed in 2011 and is led by its senior partners, Jack Glover, Justin Bertram, and Leon Rubinov.
© 2022 Private Equity Professional | August 16, 2022
