Centerbridge Partners has sold its portfolio company Aquilex Specialty Repair and Overhaul (Aquilex SRO), a provider of industrial maintenance, repair and revitalization services, to AZZ for $250 million. The existing senior management team of Aquilex SRO has agreed to join the AZZ leadership team. Aquilex HydroChem LLC, a subsidiary of Aquilex SRO, is not part of this transaction.
Aquilex SRO is a provider of maintenance, repair and revitalization services to the nuclear, fossil, waste to energy, refining, chemical processing, pulp and paper and general industrial markets. The company operates facilities in St. Petersburg, FL; Edmonton Alberta, Canada; Radom, Poland; Hellevoetsluis, Netherlands; and Sao Paulo, Brazil. Aquilex SRO was founded in 1978 and is based in Norcross, GA (www.aquilex.com).
The acquisition is a part of a strategy by AZZ to expand its offerings in the electrical and industrial products segment and to enhance its market presence in its primary served markets. For the first full year under AZZ, Aquilex SRO revenues are expected to be in the range of $225 to $250 million.
Funding for the acquisition by AZZ is to be provided from cash on hand and by a new bank credit agreement which is anticipated to be entered into by AZZ simultaneously with the closing of the Aquilex acquisition.
AZZ is a specialty electrical equipment manufacturer serving the industrial, power generation, transmission and distributions markets. The company also provides hot dip galvanizing services to the North American steel fabrication market. AZZ is based in Fort Worth, TX (www.azz.com).
“Aquilex SRO is a great addition to AZZ’s outstanding portfolio of brands and will be part of the Electrical and Industrial Products Segment. As with our recent acquisition of Nuclear Logistics Incorporated, it provides us with a recurring revenue stream during the full life cycle of a nuclear power generation plant, a fossil fuel plant, a waste-to-energy plant, a refinery or other industrial complex. Approximately one third of its revenues are derived from nuclear power, one third from the fossil fuel and waste-to-energy, and one third from refining, petrochemical, and general industrial. Aquilex SRO’s proprietary processes and unique skills truly make them an outstanding provider of highly engineered, customized proven solutions,” said David Dingus, president and chief executive officer of AZZ.
Centerbridge Partners invests from $50 million to $300 million in US based leveraged buyouts and distressed securities. The firm has $20 billion of capital under management and is based in New York (www.centerbridge.com).
Stifel is acting as exclusive financial advisor, and Kelly, Hart and Hallman is acting as legal counsel, to AZZ in connection with this transaction. Houlihan Lokey is acting as exclusive financial advisor and Kirkland & Ellis is acting as legal counsel to Aquilex SRO.
© 2013 PEPD • Private Equity’s Leading News Magazine • 2-25-13
