Wynnchurch Capital has acquired Hydraulic Technologies from SPX FLOW, a portfolio company of Lone Star Funds.
Hydraulic Technologies (HT) designs, engineers and manufactures high-pressure hydraulic tools and equipment used for maintenance, repair, and operational functions across a range of industries including infrastructure, manufacturing, and rail.
HT sells more than 70,000 SKUs in more than 100 countries and its products include Power Team high-pressure pumps, tools, and shop equipment; Bolting Systems high-pressure bolting tools, tensioners, and pumps; Stone low-pressure power units and kits for hydraulic systems; Hytec Workholding production automation clamps, fixtures, and pumps; Posi Lock manual and hydraulic bearing and gear pullers; and Rail Systems power pack-driven rail switches and barriers for UK-spec rail systems.
HT is headquartered in Rockford, Illinois, and has more than 300 employees at eight manufacturing and distribution centers across the United States, the Netherlands, China, India, Singapore, Australia, and the United Kingdom.
“We are proud of the reputation we have built providing superior performance, quality, and service to our customers who rely on Hydraulic Technologies for their mission-critical needs,” said Aaron Sztuk, the general manager of HT. “Wynnchurch understands the strong value proposition we provide, and we could not be more excited to partner with them.”
“HT is well positioned to benefit from the repair and replacement of aging global infrastructure and can tackle customers’ most complex and difficult jobs safely and efficiently,” said Neel Mayenkar, a partner at Wynnchurch. “We plan to invest heavily to accelerate HT’s growth and build upon its industry- leading service and product offering.”
HT’s founding dates back to 1925 with the founding of Owatonna Tool Corporation (OTC), a Minnesota-based maker of gear pullers and specialty hand tools. SPX acquired OTC in 1985, Fenner Fluid Power in 2000, and Smiths Industries Hydraulics Company in 2001. These business units began operating under the SPX Hydraulic Technologies brand in 2008 and the group added on again in 2009 with the buy of Torque Tension Systems. In 2015, SPX spun off its flow technologies business – which included SPX Hydraulic Technologies – into publicly traded SPX Flow (NYSE: FLOW). In 2020, SPX Flow added on with the buy of Posi Lock and then in 2022, Lone Star Funds took SPX Flow private at an enterprise valuation of $3.8 billion.
“As a global leader of highly engineered hydraulic tools, HT’s customer-centric focus on delivering best-in-class solutions for the most demanding of needs fits well with our investment philosophy,” said Frank Hayes, a managing partner at Wynnchurch. “We are delighted to partner with Aaron and his team to further support their next phase of growth.”
Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion with specializations in recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Sectors of interest include aerospace, defense and government; building products and materials’ consumer and food; manufacturing, industrial and transportation; and business services and distribution.
In January 2024, Wynnchurch closed its sixth private equity fund, Wynnchurch Capital Partners VI LP, with $3.5 billion of committed capital. Wynnchurch was founded in 1999 and is headquartered in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo) and New York City.
“The acquisition of HT demonstrates Wynnchurch’s constructive approach to quickly and efficiently carve out certain operations from their corporate parents,” said Carl Howe, a managing director at Wynnchurch. “As a standalone company, we look forward to working with HT and its management team to drive growth and innovation.”
Dallas-headquartered Lone Star invests in private equity, credit, real estate, and other financial assets. Since raising its first fund in 1995, Lone Star has organized 22 private equity funds with aggregate capital commitments totaling over $86 billion.
Morgan Stanley & Co. was the financial advisor to Wynnchurch on this transaction.
© 2024 Private Equity Professional | June 6, 2024
