Modular Devices, a provider of cleanroom systems and a portfolio company of O2 Investment Partners , has made an investment in Flow Cleanrooms and Technical Air Products.
Modular Devices is an Indianapolis-headquartered provider of mobile and modular medical imaging equipment laboratories and cleanrooms throughout the United States. The company’s modular’s medical imaging division provides mobile and modular cardiac catheterization (cath) labs, and CT and PET labs through short- and long-term leases to healthcare systems of all sizes. The company’s cleanroom division serves the life science, pharmaceutical, biotechnology, semiconductors, and manufacturing sectors with standard and customized pre-certified ISO and USP-compliant units for lease and for sale.
Flow Cleanrooms is a provider of design, engineering and installation services for hardwall, rigidwall, and softwall cleanrooms. The company is also a provider of cleanroom furniture and equipment (chairs, benches, shelving, racking and hoods) and consumable cleanroom supplies (wipes, gloves, chemicals and cleaners, and garments).
Flow Cleanrooms (formerly Angstrom Supply), led by President Dustin Deckrow, is headquartered in Grand Rapids, Michigan.
“The partnership with Modular Devices came at an opportune time as we are looking to rapidly expand our operations to better serve our customers,” said Mr. Deckrow. “We are excited to leverage Modular’s engineering and assembly expertise to offer new products and services in our markets.”
Technical Air Products (TAP), located 11 miles north of Flow Cleanrooms in Belmont, Michigan, is a manufacturer of modular softwall and rigidwall cleanrooms, as well as complementary cleanroom components and accessories including motorized fan filter units, LED light panels, hanging and self-supporting ceiling grids, mobile HEPA filters, cabinets and benches. TAP is led by President Jace Morgan.
Falding Capital Group, a Grand Rapids-based private equity firm led by John Morgan and Jace Morgan, purchased TAP in 2017.
“The investment from Modular Devices and O2 Investment Partners will enable us to ramp up our manufacturing capabilities and increase inventory to enhance our customer and dealer relationships,” said Jace Morgan. “There are other strategic opportunities we will continue to explore, and we are excited to see what the future holds.”
“The addition of Flow Cleanrooms and TAP significantly increases Modular Devices’ cleanroom product and service offering,” said Mark Koers, the CEO of Modular Devices. “The combined enterprise will now offer our customers a full range of cleanrooms, consumables, and equipment including modular/portable, hardwall, rigidwall, and softwall cleanrooms. Partnering with two best-in-class cleanroom companies further fortifies Modular Devices’ position within the market and positions the company for continued growth.”
“We are excited about the investment to bring together three outstanding companies focused on providing cleanroom solutions,” said Pat Corden, a partner at O2. “The addition of Flow and TAP marks the second and third investment for Modular Devices in 2023 and the fourth investment since 2022. We look forward to continuing our exponential expansion throughout 2024 and beyond.”
The buy of Flow Cleanrooms and TAP is the third and fourth add-on for Modular Devices since being acquired by O2 in January 2022. The two earlier buys were Cardiac Services Mobile, a Nashville-based provider of mobile catheterization and peripheral vascular labs under short- and long-term leases, in May 2022; and Interim Diagnostic Imaging, a Minnesota-based provider of short- and long-term leases of mobile CT and MRI medical imaging labs, in February 2023.
O2 makes control investments in companies with EBITDA of more than $5 million located anywhere in the United States and Canada but with a preference for the Midwest and the Great Lakes regions. The firm’s typical transaction size is $15 million to $50 million. Industries of interest include B2B services, technology, and select industrial companies. O2 closed its fourth fund, O2 Investment Partners Fund IV LP, with an oversubscribed $445 million in capital in April 2023. O2 was founded in 2010 and is headquartered in the Detroit suburb of Bloomfield Hills, Michigan.
© 2024 Private Equity Professional | February 9, 2024
