Arcline Investment Management has acquired PDC Machines in partnership with the founding Afzal family.
PDC is a manufacturer of standard and custom specialty gas compression systems that are used in all stages of the hydrogen energy supply chain, including hydrogen production, transportation, storage, and refueling. Typical applications for the company’s products include fueling hydrogen-powered vehicles, forklifts, and backup power systems; filling cylinders and bulk storage tanks with process gases; recycling process gases from renewable sources; and the conversion of wind and solar energy to hydrogen power.
PDC was founded in 1997 by President Syed Afzal and today is led by CEO Kareem Afzal and general manager Mateen Afzal. The company has 65,000 square feet of manufacturing space located near Philadelphia in Warminster, Pennsylvania.
“As a family-owned business, choosing the right partner, not just a partner, to support us through our next stage of growth was of the utmost importance,” said Kareem Afzal. “Arcline shares our core values of humility, collaboration, and a growth mindset, as well as a passion for supporting the future of clean energy, making them an ideal partner for the PDC family. The future couldn’t be brighter for PDC.”
“Energy transition is one of our most important investment themes and PDC, alongside their industry partners, are key enablers of the rapidly expanding adoption of hydrogen energy,” said Arcline in a released statement. “We couldn’t be more excited to partner with the Afzal family to support PDC’s transformational growth and the continued adoption of hydrogen energy broadly.”
Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include defense and aerospace; infrastructure services; industrial and medical technology; life sciences and specialty materials. Arcline was founded in September 2018 and has offices in San Francisco and New York.
Last month, Arcline closed its second fund, Arcline Capital Partners II LP, with total capital commitments of $2.75 billion. The buy of PDC is Arcline’s second investment for its new fund and follows the buy of ChargePoint Technology, a UK-headquartered maker of containment and sterile transfer valves that are used by pharmaceutical and chemicals companies to handle highly potent active pharmaceutical ingredients and sterile drug products.
Simmons Energy, a division of investment bank Piper Sandler, was the financial advisor to Arcline on the buy of PDC.
© 2021 Private Equity Professional | March 26, 2021