New York, NY - Harvest Partners, LP, a New York-based private equity firm, announced today that it has completed the acquisition of FCX Performance, Inc., in partnership with management from Sterling Investment Partners. Sterling will maintain an ownership stake in the company. Terms of the transaction were not disclosed.
Based in Columbus, Ohio, FCX is a leading industrial, specialty process flow control distribution company, providing technical, mission-critical products and value-added services to more than 15,000 end users, original equipment manufacturers and engineering and construction firms across the process, energy and high purity industries. The Company’s target end markets include chemicals; upstream, midstream and downstream oil and gas; power; steel; pulp and paper; pharmaceuticals; food and beverage and general industrials. FCX provides a broad array of complementary products including valves, instruments, pumps, hoses, fittings and process flow control equipment, supported by technical expertise, integration, repair and ancillary services. Formed in 1999 and with predecessor company histories dating back to 1950, the Company has 24 locations serving 32 states and over 350 employees. FCX has completed 13 strategic acquisitions since inception.
FCX’s management team, including founder and Chief Executive Officer Charles M. Simon, President and Chief Financial Officer Charles Hale, Executive Vice President Chris Hill and Chief Information Officer Russ Frazee, has been in place since 1999 and will continue to lead the Company and maintain a significant investment.
“With the support of Harvest, FCX will accelerate its long-held strategy of expanding its geographic footprint and broad portfolio of mission-critical products and services through both organic and acquisition growth initiatives,” said Charles Simon. “FCX has a demonstrated track record of growth, and we will continue to improve FCX’s position as a valued partner to our customers and vendors. We are very excited about our partnership with Harvest and our shared vision for the next phase of growth for FCX.”
Michael B. DeFlorio, Senior Managing Director of Harvest, said, “As a leading independent provider of process flow control solutions, FCX has a strong reputation for technical expertise, customer service and a broad product and service offering required to serve a diverse set of end markets. The Company’s impressive track record of growth and successful acquisition history present an attractive opportunity for investment. We look forward to working with Charlie Simon, his senior management team and the entire FCX organization to support the future growth of the Company.”
“As an industrial distributor focused on the process and energy verticals, FCX is positioned at the intersection of two investment focus areas in which Harvest has a longstanding commitment," said Christopher D. Whalen, Managing Director at Harvest. "The Company combines deep technical know-how with blue-chip vendor relationships to deliver solutions that ultimately improve uptime, safety and efficiency across a host of complex operating environments. Support for FCX’s continuing role as a leading consolidator of the flow controls industry is a central tenet of our investment strategy.”
Senior debt was arranged by BMO Capital Markets and GE Capital, and mezzanine debt was provided by Oaktree Capital Management and New York Life Capital Partners. White & Case LLP and Alvarez & Marsal advised Harvest. Robert W. Baird & Co. and Fulbright & Jaworski LLP advised the Company and Sterling.
Michael B. DeFlorio, Christopher D. Whalen and Stephen P. Carlson (Vice President) of Harvest joined FCX’s board of directors in connection with the transaction. James S. Mitchel (Associate) also worked on the transaction.
About Harvest Partners
Founded in 1981, Harvest Partners, LP (www.harvpart.com) is a leading New York-based private equity investment firm pursuing management buyouts and recapitalizations of middle market companies in North America. Harvest focuses on acquiring profitable companies in the business and industrial services, manufacturing and distribution, healthcare, midstream energy, and consumer products and retail sectors. This strategy leverages Harvest’s 31 years of experience in financing organic and acquisition-oriented growth companies.
About FCX
Based in Columbus, Ohio, FCX is a leading industrial, specialty process flow control distribution company, providing technical, mission-critical products and value-added services to more than 15,000 end users, original equipment manufacturers and engineering and construction firms across the process, energy and high purity industries. The Company’s target end markets include chemicals; upstream, midstream and downstream oil and gas; power; steel; pulp and paper; pharmaceuticals; food and beverage and general industrials. FCX provides a broad array of complementary products including valves, instruments, pumps, hoses, fittings and process flow control equipment, supported by technical expertise, integration, repair and ancillary services. Formed in 1999 and with predecessor company histories dating back to 1950, the Company has 24 locations serving 32 states and over 350 employees. FCX has completed 13 strategic acquisitions since inception. For more information visit the company's web site at www.fcxperformance.com.
