Irving Place Capital has entered into an agreement to sell its portfolio company Victor Technologies to Colfax Corporation. The all cash transaction values Victor at approximately $947 million, including the assumption of debt.
On a pro forma basis the net sales of Victor Technologies for 2013 were approximately $500 million and Adjusted EBITDA was approximately $100 million. This yields a valuation multiple of approximately 9.5x.
Victor Technologies is a designer and manufacturer of metal cutting, gas control, and other specialty welding products. The company competes in six product categories: gas equipment, arc accessories, plasma cutting systems, welding equipment, filler metals, and hardfacing alloys. Brand names include Victor, Tweco, Arcair, Thermal Dynamics, Thermal Arc, Stoody, and Cigweld. Victor Technologies is headquartered in St. Louis (www.victortechnologies.com).
Irving Place acquired Victor, which was previously named Thermadyne Holdings Corporation, in a take-private transaction in December 2010. Since acquisition, Victor’s management team and Irving Place has executed numerous strategic initiatives, including maximizing the efficiency of Victor’s global manufacturing footprint, consolidating Victor’s brand portfolio, accelerating new product development, and executing strategic acquisitions. In July 2012, Victor acquired Robotronic Oy, the parent company of ProMotion Controls, a manufacturer of advanced controls used in plasma cutting, and in October 2013, Victor acquired Gas-Arc Group, a designer and manufacturer of gas control equipment in the United Kingdom.
“We are proud of the revitalization of this 100-year-old company that has taken place as a result of our partnership with Victor’s management team. Since 2010, the strategy of driving operational improvements to fund investment in innovation, branding, distribution, and sales has created tremendous value for all of Victor’s stakeholders,” said Douglas Korn, a senior managing director of Irving Place. “We have enjoyed working with CEO Martin Quinn and his talented team as they have successfully executed on this strategy, and we wish them continued success.”
Irving Place Capital invests in buyouts, recapitalizations and growth capital opportunities. The firm focuses on making control or entrepreneur-driven investments. Since its formation in 1997, Irving Place Capital has been an investor in 60 companies and manages over $4 billion, including its current $2.7 billion institutional fund. The firm is based in New York (www.irvingplacecapital.com).
Colfax Corporation (NYSE:CFX) is a manufacturer of gas- and fluid-handling and fabrication technology products. The company is based in Fulton, MD (www.colfaxcorp.com).
RBC Capital Markets and Blackstone Advisory Partners are acting as financial advisors to Victor, and Weil, Gotshal & Manges is acting as the company’s legal advisor.
© 2014 PEPD • Private Equity’s Leading News Magazine • 2-13-14
