McNally Capital has closed its sale of Advanced Micro Instruments to publicly traded Enpro Industries for $210 million in cash. McNally first invested in the company in 2014.
Advanced Micro Instruments (AMI) is a provider of application-specific analyzers and sensing technologies used in the natural gas, biogas, laboratory, wastewater, air separation, cryogenics, aerospace and industrial processing sectors.
Specific AMI products include oxygen, hydrogen, and hydrogen sulfide analyzers and sensors; oxygen deficiency monitors; moisture analyzers; and zirconium oxide sensors. The company’s products are widely used to monitor trace levels of oxygen, hydrogen sulfide and moisture in natural gas for upstream and midstream pipeline operators. AMI is headquartered near Los Angeles in Costa Mesa, California.
According to Enpro, the normalized 2023 EBITDA of AMI is approximately $16.1 million which, based on a $210 million purchase price, equates to a 13x EBITDA valuation multiple.
Enpro Industries (NYSE: NPO) is a Charlotte-based diversified manufacturer of sealing products and engineered products. The sealing products segment provides high-performance sealing products – gaskets, seals, expansion joints, compression packing, bearing isolators – used in the energy, industrial, and aerospace sectors. The engineered products segment specializes in designing and manufacturing engineered bearings and components that are used in heavy-duty industrial machinery and equipment.
Annual revenues of Enpro exceed $1.3 billion. The company was founded in 2002 through the spin-out of the engineered industrial products business segment of the Goodrich Corporation. With the closing of the transaction, AMI will now operate as part of Enpro’s sealing technologies segment.
“Acquiring AMI, an industry leader, will build on our strategy to invest in products and technologies that safeguard critical environments in key secular growth markets,” said Eric Vaillancourt, the president and CEO of Enpro. “AMI’s innovative analyzer and sensor solutions will add to our existing portfolio of critical process technologies in the sealing technologies segment, and this acquisition will be an important step forward in expanding our capabilities into compositional analysis. We look forward to welcoming the talented AMI team to the Enpro family of companies and capitalizing on our combined capabilities.”
Chicago-headquartered McNally Capital invests from $15 million to $40 million of control equity in companies that are active in the aerospace and defense, industrial products and services, and business services sectors, and have EBITDA from $5 million to $20 million. McNally is currently investing out of its committed buyout fund, McNally Capital Fund II LP.
The firm was founded in 2008 by Ward McNally, a sixth-generation member of the McNally family which owned and operated the famed Chicago-based mapmaking company, Rand McNally, for over 100 years until its sale in 1997.
© 2024 Private Equity Professional | February 23, 2024
