Graham Partners has sold SP Industries, a designer and manufacturer of scientific equipment and labware, to the Harbour Group. Graham Partners acquired SP Industries in March 2011 from Riverlake Partners.
SP Industries (SP) is a designer and manufacturer of laboratory equipment, pharmaceutical manufacturing products, laboratory supplies and instruments, and specialty glassware. SP’s products – the company has more than 20,000 SKUs – are sold to the pharmaceutical, scientific research, industrial, aeronautic, semiconductor and healthcare markets. The company’s brands are distributed globally under the Hull, VirTis, FTS, Genevac, Hotpack, Bel-Art, H-B Instrument and Wilmad-LabGlass brands. SP is headquartered in the Philadelphia suburb of Warminster, PA, and has 9 manufacturing facilities and 3 service centers in the US and in the UK (www.spindustries.com).
SP Industries is led by its William Downs, president and chief executive officer. “Graham’s operational background and expertise, coupled with its network of experienced industry professionals, has helped the company advance into a successful business poised for long-term growth,” said Mr. Downs.
During Graham’s term of ownership, SP’s EBITDA increased by 55%, driven by a combination of new products, two add-on acquisitions, and cost savings efforts such as the consolidation of operating facilities, renegotiating existing leases, and establishing lean manufacturing techniques. Several million dollars in annual cost savings were realized during Graham’s ownership.
The two add-on acquisitions were the buys of Bel-Art Products in July 2014 and Stability Environments in January 2015. Bel-Art is a maker of laboratory products such as safety wash bottles, fume hoods, thermometers, racks, and desiccators (www.belart.com) and Stability Environments makes walk-in environmental rooms, glassware dryers and accessory products (www.stabilityenv.com).
Graham Partners acquires companies with EBITDA between $5 million and $50 million, and will invest in smaller companies as add-on acquisitions to existing portfolio companies. The firm is sponsored by the Graham Group, an industrial and investment concern with interests in plastics, packaging, machinery, building products and outsourced manufacturing. Graham Partners was founded in 1988 and is headquartered in Philadelphia (www.grahampartners.net).
Harbour Group intends to accelerate SP’s new product development, geographical expansion and acquisitions programs. “SP’s brand strength, breadth of product and in-house manufacturing capabilities fit very well with our experience in the manufactured products sector,” said Jeff Fox, Harbour Group’s chairman and chief executive officer.
Harbour Group and its companies are engaged in manufacturing and distribution in multiple industries, including flow and energy measurement, boiler systems, professional diagnostic and repair tools, specialty LED systems, niche distribution, logistics services, decorative kitchen and bath hardware, abrasives, diamond-cutting products and related tools, entertainment and music products, and auxiliary plastic processing equipment. Since its founding in 1976, Harbour Group has acquired 180 companies in 38 different industries. The firm is based in St. Louis (www.harbourgroup.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-11-15
