valve distribution

Brown Brothers Buys 700 Valve

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BBH Capital Partners has acquired 700 Valve Supply, a master distributor of specialty industrial valves used in oil and gas refining, petrochemicals and power generation. 700 Valve’s previous ownership group has retained a significant stake in the business.

700 Valve stocks more than 40,000 valves including floating ball valves for high-pressure applications, nickel alloy valves for corrosive applications, bellow seal valves for emission control, low-temperature valve assemblies for cryogenic and refrigeration applications, and chrome materials for high-temperature applications. The company exclusively sells to topline distributors, which, in turn, sell to end users for maintenance, repair and operations usage.

700 Valve is the largest stocking distributor for OMB Valves and the exclusive distributor of Velan nickel alloy valves. The company, led by CEO Keith Southard, was founded in 2014 and is headquartered near Houston in Stafford, TX (www.700valvesupply.com).

BBH Capital Partners (BBHCP) makes control and non-control investments of $10 million to $125 million in North American-based companies with enterprise valuations between $10 million to $500 million. Sectors of interest include healthcare, technology, media and telecommunications, and business products and services. The group’s investments are structured as a combination of equity and subordinated debt. BBHCP is based in Boston. Click HERE for the BBHCP website.

“BBHCP represented the type of value-add partner we were seeking, and we are very excited with this outcome,” said Mr. Southard. “We look forward to working with BBHCP in continuing to grow 700 Valve, both organically and through acquisitions.”

The investment in 700 Valve was made through BBH Capital Partners Opportunities Fund LP (CP Opportunities Fund) which closed in April 2018 at its hard cap of $250 million.

“We are very excited about partnering with such an experienced management team on our first investment,” said Donald Hardie, a managing director of Brown Brothers Harriman and co-manager of the CP Opportunities Fund. “As the valve industry becomes more complex with a growing number of specialty SKUs, 700 Valve’s expertise and experience have proven to be invaluable for its customers.”

The CP Opportunities Fund invests up to $20 million per transaction and specifically targets lower middle-market US companies whose capital needs are below the minimum investment thresholds of BBH Capital Partners.

“We look forward to helping 700 Valve continue its growth trajectory, which has been quite impressive over the last several years,” said Jeffrey Price, a senior vice president of BBH and co-manager of CP Opportunities Fund.

KPMG Corporate Finance was the financial advisor to 700 Valve and its shareholders on this transaction.

© 2019 Private Equity Professional | May 3, 2019

Wynnchurch Adds to Anderson Metals

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Wynnchurch Capital has acquired Midland Metal Mfg. and will combine the business with its existing portfolio company Anderson Metals which it acquired in January 2018.

Midland Metal is a distributor of fittings, valves, clamps, and other products to companies active in the general industrial, hose, fluid power, plumbing, oil and gas, agriculture, water, truck and trailer, and power transmission markets. The company has more than 13,000 SKUs and has 140,000 sq. ft. of facilities in Kansas City, MO (headquarters), Kerman, CA (near Fresno); Atlanta, GA; and Houston, TX (www.midlandmetal.com).

Midland Metal was founded in 1980 and is led by CEO Vince Hodes. Mr. Hodes is investing alongside Wynnchurch and will become CEO of the combined company. “We are honored to partner with Wynnchurch and combine two successful, family-owned businesses.  Wynnchurch has shown it’s committed to providing us with the resources necessary to better serve our customers and markets.  This is an exciting opportunity and a new chapter for both Midland and Anderson,” said Mr. Hodes.

“We are excited to partner with Vince and his team to build on Midland’s legacy as a market leader.  We share the same set of values Vince has instilled in the company’s culture and look forward to supporting the company’s growth plans,” said Greg Gleason, Managing Director at Wynnchurch.

Anderson Metals is a manufacturer and distributor of brass fittings, valves, pipe nipples, and other products that are used in the plumbing, hardware and general industrial end markets. The company supplies over 12,000 SKUs across a variety of categories including lead-free and leaded brass fittings, valves, pipe nipples, non-metallic fittings, and assorted parts and accessories. Last year, Anderson Metals processed more than 17,000 orders and has more than 27 million fittings in stock. The company was founded in 1947 and has an 84,000 sq. ft. distribution center and headquarters in Kansas City (www.andersonmetals.com).

“The combination of Midland and Anderson enhances our value proposition for customers with complementary products, new capabilities, and geographic reach,” said Chris O’Brien, Managing Partner at Wynnchurch. “We look forward to working with management to create a leading industrial distribution platform through organic growth initiatives and strategic acquisitions.”

Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion. Sectors of interest include aerospace & defense, automotive, building products, chemicals, food, logistics, energy services & equipment, environmental services, industrial products & services, metals & mining, and paper & packaging. The firm was founded in 1999 and is located in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo), and Toronto (www.wynnchurch.com).

© 2018 Private Equity Professional | November 7, 2018

Pfingsten Buys Quality Valve

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Pfingsten Partners has acquired Quality Valve, a distributor of OEM replacement parts for safety and relief valves.

Quality Valve is a national provider of safety and relief valve parts to certified valve repair companies. The company maintains an expansive inventory of new OEM spare parts from manufacturers such as Dresser, Consolidated, Crosby, Anderson-Greenwood and Farris. Quality Valve has a temperature controlled warehouse facility and headquarters located in Mobile, AL (www.qualityvalves.com).

Pfingsten’s purchase of Quality Valve was completed with equity from its fifth fund, Pfingsten Partners Fund V LP, which closed in February 2016 with $382 million of capital. Quality Valve becomes the fund’s sixth platform investment. The fund is targeting 14 platforms.

Pfingsten partnered on this investment with the company’s founder, Raymond McCaffrey, III, who has maintained an equity ownership position in the company. “Mr. McCaffrey has built an outstanding business that uses industry and product expertise to take a consultative approach to solving its client’s problems. That approach, combined with best-in-class service and execution, has positioned the company as a market leader in its industry,” said Ken Hessevick, a Principal at Pfingsten. “We are thrilled to invest in Quality Valve’s people and infrastructure to accelerate growth with new and existing customers.”

“We are eager to partner with Pfingsten and take Quality Valve to the next level,” said Mr. McCaffrey. “Pfingsten’s operational capabilities, conservative capital structure and prior experience in the valve industry will provide our company with additional resources to scale our customer-centric value proposition.”

Pfingsten invests in middle-market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million, revenues from $20 million to $150 million, and EBITDA between $3 million and $12 million. Since founding in 1989, Pfingsten has acquired 125 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with additional representative offices in India and China (www.pfingsten.com).

© 2018 Private Equity Professional | August 1, 2018

Staple Street Acquires Mid-States Supply

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Staple Street Capital has acquired the assets of Mid-States Supply Company, a distributor of industrial valves, pipe, automation products, fittings, steam specialty items and controls. The transaction was completed by a stalking horse bid through Section 363 of the US Bankruptcy Code.

Mid-States’ customers are active in the refining, oil and gas, industrial and commercial markets. In addition to its distribution operations, Mid-States provides valve actuation, custom fabrication and retrofitting, steam audits and management, and just-in-time and on-site inventory management programs.  The company is based in Kansas City (www.midcoonline.com).

“We are excited to acquire Mid-States and provide the capital, operating and strategic resources to position the company for long term growth,” said Staple Street in a released statement. “We plan to conservatively capitalize the company and to invest in the Mid-States’ people, processes, and systems to grow the business and further differentiate its product offerings.”

Staple Street Capital makes control investments of $15 million to $75 million in companies with revenues of $50 million to $500 million. Industries of interest include business services; chemicals; communications, media and software; consumer and retail; distribution and logistics; energy; financial services; healthcare; and industrial and manufacturing. Staple Street is currently investing out of Staple Street Capital II, LP, which closed at its hard cap of $265 million in April 2015. The firm was co-founded by its managing directors Stephen Owens and Hootan Yaghoobzadeh and is based in New York (www.staplestreetcapital.com).

“Staple Street’s emphasis on providing value added resources, commitment to operational excellence and continuous improvement, and conservative approach to financial leverage makes them a great partner for Mid-States,” said Ben Hurst, Mid-States’ CEO. “These are the ingredients we need in a partner to grow and strengthen our position in the industry.”

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-21-16