Fortress Investment Group has acquired Infra Pipe Solutions (IPS) a leading manufacturer of high-density polyethylene (HDPE) pipes and structures, from Wynnchurch Capital.
Wynnchurch established Infra Pipe Solutions in September 2018 after acquiring certain Canadian assets of Uponor Infra Oy, a Finland-based pipe manufacturer, for C$62.5 million. During its ownership, Wynnchurch facilitated the add-on acquisition of Endot Industries, a New Jersey-based maker of small and large-diameter HDPE pipes used in water distribution, gas distribution, telecommunications, and electrical installations.
Today, IPS is one of North America’s largest HDPE pipe and conduit manufacturers. Its product portfolio serves industries such as potable water, wastewater, stormwater, telecommunications, oil and natural gas, and clean energy. The company owns and licenses several brands, including Sclairpipe, Weholite, Endopure, and Enduct. Headquartered near Toronto in Mississauga, Ontario, IPS operates five manufacturing facilities across Canada (2), New Jersey, Oklahoma, and Tennessee.
The global HDPE pipe market is expected to grow at a compound annual growth rate (CAGR) of 5.5%, reaching $30 billion by 2030. Growth drivers include the expansion and rehabilitation of potable water transmission in the U.S., the ongoing build-out of broadband infrastructure in rural areas across Canada and the U.S., and the increasing demand for data transmission infrastructure driven by advancements in artificial intelligence.
“Our new partnership with Fortress is the start of an important next chapter for IPS, with increased investment to fuel our growth,” said Bill Donaldson, the CEO of Infra Pipe Solutions. “We see strong demand for our product over the coming decades as hundreds of billions of dollars have been committed to projects across North America that rely on HDPE product.”
“We believe that IPS today holds a very favorable market position in HDPE product manufacturing – with the broadest product range and manufacturing footprint – and that our investment will increase the company’s ability to grow and meet the increasing demand for its products,” said Ben Green, a director at Fortress. “The company’s management team has developed a compelling growth plan, and we look forward to working with the team to deliver on that strategy.”
Fortress Investment Group, a global investment firm with over $48 billion in assets under management, serves more than 2,000 institutional clients and private investors worldwide. Its investment strategies span credit and real estate, private equity, and permanent capital. Founded in 1998, Fortress is headquartered in New York City.
Wynnchurch Capital, a private equity firm specializing in middle-market companies, invests in businesses with revenues between $50 million and $1 billion. Its expertise includes recapitalizations, growth capital, management buyouts, corporate carve-outs, and restructurings. Wynnchurch focuses on sectors such as 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 in committed capital. Founded in 1999, the firm is headquartered near Chicago in Rosemont, Illinois.
© 2024 Private Equity Professional | December 3, 2024
