Arcline Investment Management has acquired Rotating Machinery Services (RMS) from Cortec Group.
RMS specializes in aftermarket repair, maintenance, and overhaul services for large, highly engineered rotating equipment. The company services products used in refineries, chemical and petrochemical plants, and oil and gas facilities.
RMS’s service offerings include centrifugal, axial, reciprocating, and oil-free screw compressors, as well as hot gas expanders and steam turbines.
Cortec Group acquired RMS from Incline Equity Partners in June 2019. During Cortec’s ownership, RMS completed the acquisitions of Texas-based Breaux Machine Works (July 2022), Texas-based Origin Metrology Group (May 2023), Houston-based Plant Process Machine Works (November 2023), and New York-based Blading Services Unlimited (November 2023).
“During our partnership, RMS more than doubled in size and further cemented itself as the leading provider of aftermarket services for complex rotating equipment,” said Michael Najjar, managing partner at Cortec.
RMS is led by CEO John Bartos and employs more than 400 people. The company is headquartered in Bethlehem, Pennsylvania, with an additional facility in Texas.
“Arcline’s deep industry and business model experience and focus on growth is a perfect match with our management team, employees, and customers,” said Mr. Bartos. “We look forward to working with Arcline to continue redefining the aftermarket turbomachinery business through superior parts offering, service, expertise, and customer focus.”
Arcline, based in New York City, focuses on control investments in companies with recurring revenue models across sectors such as defense and aerospace, industrial and medical technology, life sciences, and specialty materials. The firm targets companies with EBITDA ranging from $10 million to $100 million and enterprise values up to $1 billion. In March 2023, Arcline closed its third fund with $4.5 billion in capital commitments, following its $2.75 billion second fund closure in January 2021.
“We are thrilled with the result of this transaction for RMS’s management and shareholders and are confident RMS is well-positioned to build on its strong track record of growth,” said Scott Schafler, a founding partner at Cortec. “RMS demonstrates key traits we look for in our portfolio companies, as a provider of mission-critical, highly engineered, non-discretionary aftermarket parts and services to a massive installed base of critical infrastructure.”
Cortec, also headquartered in New York City, invests $100 million to $500 million in equity in U.S. and Canadian companies with EBITDA between $10 million and $50 million. The firm focuses on sectors such as consumer, healthcare, and specialty services and products. In February 2024, Cortec closed its Cortec Group Fund VIII LP (Fund VIII) with $3.2 billion in total capital commitments. The fund exceeded its $2.5 billion target and, with limited partner approval, surpassed its $3.0 billion hard cap.
© 2025 Private Equity Professional | January 14, 2025
