Nelson Global Products, a portfolio company of Wind Point Partners, has acquired Tru-Flex, a manufacturer of flexible components used in exhaust systems from HBM Holdings.
Tru-Flex is a manufacturer of exhaust bellows, flexible metal hoses and other aftermarket products for on- and off-road commercial vehicles including diesel exhaust systems used in heavy-duty trucks. According to the company, more than one of every two semi-tractors in the United States utilize Tru-Flex products.
Tru-Flex, led by CEO Gregg Notestine, was founded in 1962 and is headquartered near Indianapolis in West Lebanon, Indiana with an additional manufacturing facility in Zimna Wodka, Poland.
St. Louis-based HBM acquired Tru-Flex in October 2013 from Kansas City-based TGP Capital Partners. As part of Wind Point’s buy of Tru-Flex, HBM has agreed to make a minority investment in Nelson Global.
Nelson Global is a manufacturer of tubes, including very large diameter tubes, used in emissions, coolant, heating, air intake and exhaust handling applications used in on-highway, off-highway, industrial and powersports markets. The company, led by CEO Steve Scgalski with more than 3,500 employees, is headquartered near Madison in Stoughton, Wisconsin with 21 manufacturing facilities located in the United States (9), India (6), Mexico (2), Brazil (2), China, and Australia.
Nelson Global began in August 2010 when Wind Point formed Global Tube as a holding company to acquire Global Tube Form and Peoria Tube Forming Corporation. In January 2011, Global Tube acquired the exhaust business of Cummins Engine, and the combined business was renamed Nelson Global Products (Cummins had acquired Nelson Muffler, a Wisconsin-based maker of diesel and gas engine mufflers in 1997). Six additional add-on acquisitions were later completed with the buys of Morton Industries (August 2011), Brazil-based Envall (May 2013), Brazil-based TuboPress (February 2014), GT Exhaust (December 2015), Silex Innovations (December 2015), and Mexico-based Tube Specialties (November 2016).
The acquisition of Tru-Flex gives Nelson Global additional thermal, fluid, and NVH (noise, vibration, and harshness) products; and adds manufacturing operations in Europe. “We are excited to welcome the entire Tru-Flex team to Nelson,” said Mr. Scgalski. “Combining Tru-Flex’s engineering strengths, engineered NVH solutions and European operations with Nelson’s global purchasing, logistics, manufacturing and distribution networks and engineering capabilities allows us to better serve our customers and accelerate growth.”
Chicago-based Wind Point invests from $50 million to $100 million in companies with EBITDA of at least $10 million. Industries of interest include business services, consumer products and industrial products. Wind Point is currently investing out of Wind Point Partners IX LP which closed in February 2021 with $1.5 billion of capital. Fund IX is the largest fund ever raised by Wind Point.
HBM is a holding company controlled by a family trust established by Harry B. Mathews Jr., the founder of Mississippi Lime Company, a producer of calcium products including quicklime and calcium carbonate. HBM looks to acquire companies that have EBITDA from $5 million to $20 million. HBM is based near St. Louis in Clayton, Missouri.
© 2021 Private Equity Professional | September 28, 2021
