Arcline Carves Omega Engineering from Spectris

Arcline Carves Omega Engineering from Spectris

Arcline's buy of Omega quickly follows its acquisition of electronic connector maker Meritec earlier this week

Omega is a maker of more than 100,000 SKUs of sensing, control, and monitoring products that measure and control temperature, humidity, pressure, strain, and other physical properties

SOURCE: Omega Engineering

Dwyer Instruments, a portfolio company of Arcline Investment Management, has agreed to acquire Omega Engineering from publicly traded Spectris at an enterprise value of $525 million.

Omega Engineering is a maker of more than 100,000 SKUs of sensing, control, and monitoring products that measure and control temperature, humidity, pressure, strain, force, flow, level, pH, and conductivity. Specific Omega products include thermocouple probes and assemblies, pressure gauges and switches, and air velocity measurement systems. Omega also manufactures data loggers and recorders, as well as electric heaters.

Omega is fully integrated, with in-house design and engineering, manufacturing, and distribution capabilities. The company was founded in 1962 by Betty Hollander and today is led by CEO Amit Agarwal with a headquarters in Norwalk, Connecticut.

“I am confident this is an excellent move for Omega. Dwyer has a strong position in most of our key markets through its highly complementary portfolio of sensing, monitoring, and control products and solutions,” said Mr. Agarwal. “Having spent time with key members of the Dwyer and Arcline leadership teams during the transaction process, I believe that we share similar cultures and values and that the acquisition represents a great opportunity for all stakeholders.”

Dwyer Instruments consists of a series of companies and brands including Dwyer Instruments, Love Controls, Mercoid, WE Anderson, Proximity and UFM. The firm manufactures controllers, data loggers, gages, manometers, monitors, remote displays, switches, and transmitters that are used to measure, monitor and control pressure, air velocity, flow, and fan pressure.

Many of Dwyer’s customers are active in the process automation, HVAC and building automation sectors. The company, led by CEO Chuck Dubois, was founded in 1931 and is headquartered in Michigan City, Indiana, with additional offices in Asia, Europe and Australia.

Arcline acquired Dwyer from the Clark family and members of the company’s senior management team in July of 2021 and has since completed five add-on acquisitions with the addition of Omega.

“Omega is a tremendous addition to the Dwyer Group of companies, bringing a highly respected brand and a broad, world-class product portfolio,” said Mr. Dubois. “Dwyer and Omega offer complementary sensing and instrumentation products with a similar value proposition, meeting customers’ unique needs with high-quality, configured products. Together, the businesses offer an unmatched breadth of products and technical expertise, which we believe will provide significant value to our customers and partners.”

Spectris (LSE: SXS) is a manufacturer of instrumentation and controls with annual revenues of more than $1.6 billion. The company was founded in 1915 and is headquartered west of London in Egham, United Kingdom.

Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include defense and aerospace; infrastructure services; industrial and medical technology; life sciences and specialty materials. Arcline was founded in September 2018 and has offices in San Francisco and New York.

EC M&A was the financial advisor to Arcline on this transaction which is expected to close by the end of the third quarter of 2022.

© 2022 Private Equity Professional | May 5, 2022

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