Wynnchurch Sells Pump Maker to Oaktree

Wynnchurch Capital has sold LPW Group, a designer and manufacturer of specialty valves and actuators, to Oaktree Capital Management.

Houston-headquartered LPW Group is a holding company formed by Wynnchurch to consolidate its investments in Pennsylvania Machine Works (acquired in January 2020), Texas-based Western Forge & Flange (March 2020) and Texas-based Ladish Valves (March 2022).

Today, LPW Group is a designer and manufacturer of specialty valves, actuators, fittings, and flanges that are used in chemical, petrochemical, pulp and paper, energy, and naval applications. The company goes to market under the Ladish Valves, Smith Valves, Penn Machine, Western Forge,  AIT and Diamond Gear brands.

LPW Group, led by CEO Mark Bowie, has more than 500 employees and operates from seven locations in Texas (5), New Jersey, and Pennsylvania.

“We are grateful for Wynnchurch’s valuable partnership and substantial support during their ownership. Their assistance in driving business growth, promoting continuous improvement, and the successful identification and integration of acquisitions has been instrumental to our success,” said Mr. Bowie.

“During our partnership, LPW Group demonstrated strong growth across each segment and strengthened its position as a leader in its core applications and markets,” said Kevin Hanley, a principal at Wynnchurch. “We’re thrilled with the outcome and wish the LPW Group team and Oaktree our best.”

Oaktree makes investments in credit, private equity, real assets and publicly traded equities. The Los Angeles-headquartered firm has over 1,200 employees, offices in 22 cities worldwide, and approximately $189 billion in assets under management.

Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion with specializations in recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Sectors of interest include aerospace, defense and government; building products and materials’ consumer and food; manufacturing, industrial and transportation; and business services and distribution.

In January 2024, Wynnchurch closed its sixth private equity fund, Wynnchurch Capital Partners VI LP, with $3.5 billion of committed capital. Wynnchurch was founded in 1999 and is headquartered in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo) and New York City.

© 2024 Private Equity Professional | March 19, 2024