Branford Castle has acquired GPT Industries, a manufacturer of pipeline sealing and electrical isolation products, from publicly traded EnPro Industries.
Denver-headquartered GPT produces flange isolation kits (FIKs) and monolithic isolation joints (MIJs) that are used in oil, natural gas, and water pipeline applications to prevent pipeline failures and protect against potential explosions, fires, and pollution.
A FIK is a set of components designed to provide protection against vibration, noise, and thermal expansion in pipelines. The kit typically includes a gasket, sleeves, and fasteners. A MIJ is a solid block with no moving parts that provides an electrical break between segments of the pipeline.
According to Branford Castle, GPT’s “Pikotek” brand is known as the pioneer of the flange isolation gasket industry and is recognized as the original brand to have introduced FIKs to the broader market in the 1980s.
GPT (then Garlock Pipeline Technologies) was formed in 2012 when EnPro combined three businesses – PSI (Pipeline Seal & Insulator), Pikotek, and Franken Plastik. PSI was acquired by EnPro in 2011 and Pikotek was acquired in 2003. EnPro exited its investment in Franken Plastik in 2016.
Today, GPT is led by President Darin Lane who will continue to lead the newly independent company. “We look forward to our next stage of growth in partnership with Branford Castle,” said Mr. Lane. “With Branford’s support, we are ready to hit the ground running with our growth initiatives.”
“We are excited to partner with Darin and the GPT leadership team and help them expand their products into new markets and geographies,” said David Castle, a managing partner of Branford Castle. “We believe the company’s technological leadership and established reputation of quality and reliability make it well-positioned for future growth.”
“We are also excited to support GPT as they continue to develop new innovative products and solutions to enhance pipeline safety,” said Marilyn Yang, a vice president at Branford Castle.
The acquisition of GPT is the fourth platform acquisition for Branford’s second fund, which closed in 2021, and follows the June 2022 acquisition of Handi Quilter, a Utah-based manufacturer and designer of quilting machines, from Premier Needle Arts, a portfolio company of Blue Point Capital.
Branford Castle invests in companies that have enterprise values of up to $100 million and EBITDA of less than $15 million. Sectors of interest include consumer products and services, commercial distribution, industrials and specialty manufacturing, business services, and logistics. For the past 15 years, New York City-based Branford Castle has been led by John S. Castle and David Castle. Included in the day-to-day management team of the firm is Managing Partner Laurence Lederer.
Charlotte-headquartered EnPro (NYSE: NPO) designs and manufactures a range of industrial products used in the aerospace, power generation, heavy-duty trucking, mining, and chemical sectors. Annual revenues of EnPro exceeds $1.3 billion. The company was founded in 2002 through the spin-out of the engineered industrial products business segment of the Goodrich Corporation.
Capital Southwest Corporation and IBC Funds are providing the debt financing to support the buy of GPT by Branford Castle.
Capstone Partners was the financial advisor to EnPro Industries on this transaction.
© 2023 Private Equity Professional | February 7, 2023
