First Reserve Corporation has acquired Ameriforge, a manufacturer of products used in the oil and gas industry. Ameriforge was owned by Post Oak Companies which is affiliated with Tanglewood Investments. The executive management team of Ameriforge will remain in place and will retain an equity interest in the company. In addition, the three founders and principals of Tanglewood will be continuing equity investors in Ameriforge.
Ameriforge is a vertically integrated manufacturer of engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets. The company has 29 facilities in five countries and is based in Houston, TX (www.ameriforge.com).
“First Reserve’s investment represents a key milestone for our company. During our partnership with Tanglewood, we were able to transform Ameriforge from a single location flange forging company focused on the North American market to a fully-integrated, 29 facility international manufacturing enterprise which is providing a growing array of highly technical products and related services to the global energy, aerospace and transportation industries. We believe our business model is uniquely poised for continued significant growth and could not be more pleased that we are beginning a new partnership with First Reserve,” said Gean Stalcup, CEO of Ameriforge.
First Reserve is a private equity firm with a focus on the energy industry. The firm was founded in 1983 and has offices in Houston, TX; Greenwich, CT and London, UK (www.firstreserve.com).
“Our management team is highly confident that First Reserve’s experience and knowledge in the energy industry will assist us as we continue to grow our suite of products and related services to better serve our customer base around the world. We will also benefit substantially from First Reserve’s industry knowledge, financial strength and deep experience in providing companies like ours effective access to growth capital. Finally, I’d like to offer my personal thanks to the team at Tanglewood for their enduring support, to our employees for their tireless efforts in creating this enterprise and to our customers whose continued trust in our products and services has fueled our growth and success.”
Tanglewood invests in middle market equipment manufacturing companies serving the energy industry. The firm is based in Houston (www.tanglewoodinv.com).
“My two partners at Tanglewood and I could not be more pleased with this transaction. We are strong believers in the future of Ameriforge and have affirmed that conviction by our continuing personal investments in the company alongside First Reserve. I very much look forward to continuing my relationship with Ameriforge as a member of its Board of Directors. The time had come for Ameriforge to seek a larger and more capable financial partner in order for the company to realize its full potential. First Reserve is an ideal fit in every respect to be that partner,” said Michael Tiner, Managing Director of Tanglewood and current Chairman of Ameriforge Group.
Harris Williams & Co. is the exclusive advisor to Ameriforge.
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-27-12
