Harvest Partners Acquire FCX Performance from Sterling

Harvest Partners Acquire FCX Performance from Sterling

Harvest Partners has completed the acquisition of FCX Performance, a distributor of industrial flow control products, from Sterling Investment Partners. Sterling will maintain a minority ownership stake in the company.

“As a leading independent provider of process flow control solutions, FCX has a strong reputation for technical expertise, customer service and a broad product and service offering required to serve a diverse set of end markets,” said Michael DeFlorio, Senior Managing Director of Harvest. “The company’s impressive track record of growth and successful acquisition history present an attractive opportunity for investment. We look forward to working with Charlie Simon, his senior management team and the entire FCX organization to support the future growth of the company.”

FCX is an industrial, specialty process flow control distribution company to more than 15,000 end users, original equipment manufacturers and engineering and construction firms across the process, energy and high purity industries. Products include valves, instruments, pumps, hoses, fittings and process flow control equipment. The company’s target end markets include chemicals; upstream, midstream and downstream oil and gas; power; steel; pulp and paper; pharmaceuticals; food and beverage and general industrials. Formed in 1999 and with predecessor company histories dating back to 1950, the company has 24 locations serving 32 states and over 350 employees. FCX has completed 13 strategic acquisitions since inception and is based in Columbus, OH (www.fcxperformance.com).

FCX’s management team, including founder and Chief Executive Officer Charles Simon, President and Chief Financial Officer Charles Hale, Executive Vice President Chris Hill and Chief Information Officer Russ Frazee, have been in place since 1999 and will continue to lead the company and maintain a significant investment.

“With the support of Harvest, FCX will accelerate its long-held strategy of expanding its geographic footprint and broad portfolio of mission-critical products and services through both organic and acquisition growth initiatives,” said Mr. Simon. “FCX has a demonstrated track record of growth, and we will continue to improve FCX’s position as a valued partner to our customers and vendors. We are very excited about our partnership with Harvest and our shared vision for the next phase of growth for FCX.”

Harvest Partners invests in management buyouts and growth financings. Sectors of interest include business and industrial services, manufacturing and distribution, healthcare, midstream energy, and consumer products and retail sectors. The firm was founded in 1981 and is based in New York (www.harvpart.com).

“As an industrial distributor focused on the process and energy verticals, FCX is positioned at the intersection of two investment focus areas in which Harvest has a longstanding commitment,” said Christopher Whalen, Managing Director at Harvest. “The company combines deep technical know-how with blue-chip vendor relationships to deliver solutions that ultimately improve uptime, safety and efficiency across a host of complex operating environments. Support for FCX’s continuing role as a leading consolidator of the flow controls industry is a central tenet of our investment strategy.”

Senior debt for this transaction was arranged by BMO Capital Markets and GE Capital, and mezzanine debt was provided by Oaktree Capital Management and New York Life Capital Partners. White & Case and Alvarez & Marsal advised Harvest. Robert W. Baird & Co. and Fulbright & Jaworski advised FCX and Sterling.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-19-12

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