Flow Control Holdings, a portfolio company of Audax Private Equity, has acquired the U.S. operations of Strahman Holdings.
Strahman is a manufacturer of industrial valves and washdown products sold under three brands, Strahman Process Valves, BI-TORQ Valve Automation, and Strahman Washdown Equipment.
Strahman’s process products include ball valves, diaphragm valves, sampling valves, and check valves that are made of stainless steel with smooth, crevice-free surfaces that are capable of operating in high-temperature and high-pressure environments. The company’s washdown equipment includes tools, devices, and systems such as hose stations, hoses and hose reels, and spray nozzles.
Strahman products are used in the oil and gas, food and beverage, chemical, petrochemical, polymer, biotechnology, pharmaceutical, mining, pulp and paper, and wastewater management sectors. Strahman, led by CEO Jeff Graby, was founded in 1921 and is headquartered in Bethlehem, Pennsylvania.
Flow Control Holdings (FCH) specializes in highly engineered sanitary and high purity flow components – fittings, valves, hoses, and pumps – that are used in critical applications within the food, beverage and pharmaceutical industries. Company owned brands include Steel & O’Brien and Ace Sanitary. FCH is led by CEO Scott Kerns and is headquartered in Cincinnati.
Sanitary valves are designed to meet strict hygiene standards and often have smooth, crevice-free surfaces. Similarly, sanitary fittings that are used to connect sections of sanitary piping systems, are designed with smooth, polished surfaces to prevent bacterial growth and contamination. Sanitary hoses are typically made of food-grade materials and have smooth, non-porous surfaces to prevent the buildup of bacteria.
According to FCH, the acquisition of Strahman provides the company with entry into the sanitary MRO aftermarket sector by adding washdown equipment to its product suite.
“We are thrilled to welcome the Strahman business and team to FCH,” said Mr. Kerns. “Strahman has an impressive line of products and a strong track record of innovation in the U.S. dairy and washdown markets. The entire Strahman lineup is complementary to our offering of flow control components, and we are excited about adding the Strahman brand of washdown equipment to the FCH portfolio.”
The acquisition of Strahman is FCH’s fifth add-on since Audax acquired the business in March 2022. The four earlier buys were Andron Stainless, a South Carolina-based maker of sanitary fittings, valves, and tubing (January 2023); DSO Fluid Handling, a New Jersey-based maker of sanitary replacement and maintenance parts (February 2023); Flowtrend, a Texas-based maker of sanitary replacement and maintenance parts (February 2023); and Ultibend, a California-based maker of sanitary fittings and tubing (March 2023).
“The acquisition of Strahman, coupled with FCH’s previous acquisitions, provide considerable momentum as we become a leader in the sanitary flow control market. Strahman’s product portfolio and manufacturing footprint help accelerate our strategic goals and drive value for our customers,” said Andrew Oliver, a managing director at Audax.
Audax Private Equity invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. The firm has invested over $9 billion in 160 platforms and over 1,200 add-on companies. Sectors of interest include business and consumer services; energy; healthcare; technology, media, and telecom; and industrials including chemicals, infrastructure, and building materials. Audax, with offices in Boston, New York, and San Francisco, is currently investing out of its $3.5 billion, sixth private equity fund.
© 2023 Private Equity Professional | June 16, 2023
