lubricants

NVM Private Equity Exits Interlube Systems

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NVM Private Equity has sold its portfolio company, Interlube Systems, to The Timken Company. The sale represents a 3x multiple of NVM’s original investment.

Interlube manufactures and markets automated lubrication products for use in commercial vehicles, cranes, quarries and heavy-duty production lines. Interlube had sales in 2012 of £8.5 million. The company has approximately 90 employees and operates from facilities located in the UK and US and is based in Plymouth, UK (www.interlubesystems.co.uk).

NVM Private Equity first invested in Interlube Systems in a management buy-out of the company in 2001. “I have been managing Interlube since the MBO and have enjoyed being a part of the company’s successful growth story,” said Mike Cusack, Managing Director of Interlube Systems. “The sale to Timken is the obvious next step and Interlube will prosper under the ownership of a multinational. NVM has demonstrated their faith in the management team, through some very difficult economic times. It has been a pleasure working with them to build the business and we are all grateful for their support over the last 12 years.”

NVM Private Equity is a generalist investor and looks to invest between £2 million and £10 million in each transaction. The firm manages over £200 million in capital and is headquartered in Newcastle, UK (www.nvm.co.uk).

“Interlube has performed well in some challenging markets over the life of NVM’s investment, so this is a very positive story for the British manufacturing industry. Mike Cusack and his team have a wealth of experience in this sector and have established strong customer relationships and loyalty. I am pleased that the sale to Timken will allow Interlube to continue to flourish as part of a larger organization and expand into new markets. We have thoroughly enjoyed working with such a dedicated management team and wish them the best of luck for the future,” said Martin Green, Managing Director of NVM Private Equity.

The Timken Company engineers, manufactures and markets mechanical components and high-performance steel. Timken bearings, engineered steel bars and tubes – as well as transmissions, gearboxes, chain, related products and services – support diversified markets worldwide. The company had sales of $5 billion in 2012 and employs approximately 20,000 people in 30 countries (www.timken.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-14-13

Ridgemont Acquires J.A.M. Distributing Company

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Ridgemont Equity Partners has made a majority equity investment in J.A.M. Distributing Company (JAM), a distributor of lubricants, fuel, base stock and ancillary products.

“Our first introduction to Ridgemont displayed their professionalism and knowledge of investing in diverse industries. They definitely had a very strong interest in JAM and the desire to make a substantial investment in my company. I believe that Ridgemont Equity Partners will be a very good fit for JAM because of their commitment to our employees, customers and the continued growth of our business. I wish the new partnership a long and very prosperous future,” said Johnny Maniscalco, founder of JAM.

J.A.M. Distributing Company is a distributor of lubricants, fuel, base stock, and ancillary products for the industrial, commercial vehicle, passenger vehicle, and marine end markets. The company operates as one of ExxonMobil’s leading US lubricant distributors.  JAM is headquartered at its main terminal in Houston with additional terminal operations in Dallas, Beaumont, Lufkin, Clute and Galveston (www.jamdistributing.com).

With the sale of JAM to Ridgemont, Mr. Maniscalco will be retiring from the day-to-day operations of JAM.  “We recognize the tremendous accomplishments of the company’s founder and retiring CEO, Johnny Maniscalco, in building JAM into the organization that it is today, and we wish Johnny our best going forward,” said Jack Purcell, a Principal at Ridgemont.

Ridgemont Equity Partners (formerly Banc of America Capital Investors) focuses on middle market buyout and growth equity investments of $25 million to $75 million. The firm invests in the following sectors: basic industries and services; energy; healthcare; and telecommunications/media/technology. Ridgemont Equity Partners is headquartered in Charlotte, NC (www.ridgemontep.com).

“We are pleased to partner with senior management of JAM and continue upon the company’s long history of providing industry leading products and services to its customers in several markets throughout the state of Texas,” said Rob Edwards, a Partner at Ridgemont.

© 2012 PEPD • Private Equity’s Leading News Magazine • 12-20-12