TGP Capital Partners has sold its portfolio company Tru-Flex Metal Hose to HBM Holdings.
Tru-Flex is a manufacturer of metal hydro-formed bellows and interlock flexible hoses. The company’s products are primarily used in heavy-duty on-road and off-road vehicles to increase the life of the vehicles’ exhaust systems by decoupling engine vibrations from the exhaust system. Tru-Flex is based in West Lebanon, IN (www.tru-flex.com).
“We are extremely pleased with the outcome of our investment in Tru-Flex. Tru-Flex has experienced tremendous growth due its patented product line and the need for OEM’s to comply with the dramatic change in emissions technology to meet the new emissions standards,” said Shane Parr, TGP Managing Director. “The management team of Tru-Flex did a great job improving profitability through lean manufacturing processes and by investing in capital projects to increase efficiency and capacity. It is a lot of fun when everyone works together and the team realizes a great outcome.”
TGP Capital Partners makes control and minority equity investments of $5 million to $14 million in middle-market companies that have revenues between $15 million and $150 million and EBITDA in excess of $2.5 million. Sectors of interest include manufacturing, distribution, and business services. The firm is based in Kansas City, MO (www.tgpinvestments.com).
“We are very happy with the partnership we created with TGP. Their historical experience in manufacturing and board level guidance helped us achieve our strategic objectives. We have accomplished a lot and their philosophy of aligning incentives so that we share in the success of the business made us a true partner with TGP,” said Gregg Notestine, Tru-Flex CEO.
The buyer of Tru-Flex, HBM Holdings, is an investment vehicle for the privately-held ownership of the Mississippi Lime Company (www.mississippilime.com). HBM Holdings looks to acquire companies with enterprise values from $20 to $200 million and that have at least $5 million of EBITDA. HBM is based in St. Louis (www.hbmholdings.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-17-13
