Warburg Pincus has agreed to acquire Sundyne, a manufacturer of flow control equipment, from Accudyne Industries, a portfolio company of BC Partners and The Carlyle Group.
Sundyne designs, manufactures and provides aftermarket support for centrifugal pumps and compressors that are used in hydrocarbon processing, chemical processing, power generation, industrial, and high-pressure water applications in the oil and gas, liquid natural gas, petrochemical, refining, chemicals and industrials sectors.
Sundyne, led by Chief Executive Officer Mark Sefcik, is headquartered near Denver in Arvada, Colorado and has operations in Europe, the Middle East, India, Asia, Japan and China.
BC Partners and Carlyle acquired Accudyne Industries (formerly Hamilton Sundstrand Industrial) in December 2012 from United Technologies for $3.5 billion. At that time, the operations of Accudyne consisted of Sundyne and two other business units: Precision Flow Systems, a maker of pumps sold under a range of brands including Milton Roy; and Sullair, which produces compressors used to power air-driven industrial equipment and tools. Sullair was sold to Hitachi in July 2017, and in May 2019, Ingersoll-Rand acquired Precision Flow Systems.
“We are excited to partner with Warburg Pincus as we continue to expand our product offering of highly engineered pumps and compressors and serve the growing demand from our customers,” said Mr. Sefcik. “We are confident that working with Warburg Pincus will result in further acceleration through organic and strategic opportunities while building on the momentum we have achieved over the past fifty years.”
“Sundyne’s long history of building proprietary, mission-critical products, which are highly regarded for their reliability and efficiency while operating in harsh and complex environments, is unparalleled. The company is well-positioned to benefit from the continued growth in its core end markets, given its strong track record, differentiated product portfolio and global installed base,” said Dan Zamlong, a managing director with Warburg Pincus.
Warburg Pincus has more than $62 billion in assets under management and has raised 19 private equity funds since its founding in 1966. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore.
“We believe this investment fits our model of backing market-leading companies with sustainable competitive advantages, attractive growth opportunities and first-class management teams. We look forward to leveraging our domain expertise in both the energy and industrials sectors to help Mark Sefcik and the team continue the company’s success,” added John Holland, a managing director at Warburg Pincus.
BC Partners has €20 billion of capital under management and invests in companies in a variety of sectors. The firm was founded in 1986 and has offices in London, Hamburg, New York and Paris. Since its inception, BC Partners has completed 113 private equity investments in companies with a total enterprise value of €145 billion and is currently investing its tenth private equity fund.
The Carlyle Group (NASDAQ: CG) invests worldwide in buyouts, growth capital, real estate and leveraged finance. The firm, with $222 billion of assets under management, employs approximately 1,775 people in 33 offices across six continents and is based in Washington, DC.
Morgan Stanley & Co. was the financial advisor to Sundyne on this transaction.
© 2020 Private Equity Professional | January 7, 2020