Industrial Services Acquisitions in 2020

Fluid Power Holdings, Inc. (FPH), a portfolio company of JMH Capital Partners, has acquired Wilco Supply, LLC, a Houston-based independent distributor of hydraulic and industrial hoses, fittings, and fabrication services. The acquisition expands FPH’s geographic presence in the Houston market and broadens its product, service and technical capabilities to better serve industrial customers.

Motion & Control Enterprises (MCE), a Frontenac-backed motion and control distributor, has acquired Diversified Air Systems (DAS), a Cleveland-based stocking distributor of air compressors, vacuum and water recovery systems, and related services. DAS — which employs 42 people across four locations in Ohio and western Pennsylvania — will operate as a division of MCE under the Diversified Air Systems name, expanding MCE's fluid power and aftermarket service capabilities.

Golden Gate Capital announced an investment in Covia as the company emerged from Chapter 11 after completing a financial restructuring that reduced long-term debt by approximately $750 million and cut fixed costs, including railcar obligations, by about $300 million. Golden Gate and its affiliates are the largest individual shareholder in Covia, a supplier of mineral-based material solutions headquartered in Independence, Ohio with an extensive network of plants and terminals across North America.

AEA Investors' Small Business Fund (AEA SBF) formed Meritus Gas Partners by acquiring Willingham Welding Solutions (d/b/a Gas Innovations) and Atlas Welding Supply Co. The transaction recapitalizes the two independent industrial/medical gas and welding-supplies distributors to create a national platform of distributors serving industrial, medical and specialty gas end-markets across North America.

TMS International has acquired the business and assets of Stein, LLC and Stein Steel Mill Services, LLC, a family-owned provider of steel mill services headquartered in Cleveland, Ohio. The acquisition (approximately 500 employees) expands TMS's service capabilities and U.S. footprint, adding slag removal, scrap management, recycling, material handling and mill maintenance capabilities across seven states.

Leadec, a Triton Fund IV portfolio company, acquired Diversified Automation effective December 31, 2020 to expand its parcel automation capabilities and strengthen its North American operations. Diversified Automation, headquartered in Louisville, Kentucky, is an industrial automation systems integrator with ~140 experts and roughly $100 million in annual revenue that serves major parcel and e-commerce customers such as UPS, FedEx and Amazon.

Pye-Barker Fire & Safety has acquired Nardini Fire Equipment Company, a multi-generational fire protection contractor headquartered in Saint Paul, Minnesota (with a second HQ in Fargo, North Dakota). The acquisition, formalized on December 31, 2020, expands Pye-Barker's Midwest footprint into five additional states (Minnesota, North Dakota, South Dakota, Wisconsin and Iowa) and preserves jobs by integrating Nardini's team into Pye-Barker's national platform.

Industrial Growth Partners V, L.P., in partnership with Hydromax USA management, acquired Hydromax USA, LLC from Warren Equity Partners. The private equity-controlled platform investment positions Hydromax to accelerate growth across its outsourced infrastructure services for gas, water and wastewater utilities through strategic and operational support from IGP.

InfraServ US, LLC — through its subsidiary Gateway Dealer Network — acquired the Bobcat Southwest dealership group, expanding the combined dealership footprint to 25 locations across 10 states. The acquisition, backed by sponsor Brightstar Capital Partners, adds six Southern California and Nevada locations and expands Gateway's sales, parts, service and rental capabilities; terms were not disclosed.

Specialty Welding and Turnarounds (SWAT), a PE-backed provider of turnaround and specialty welding services, has acquired Hydroprocessing Associates (HPA), a Moss Point, Mississippi-based specialist in catalyst handling and reactor maintenance, including HPA's Breathing Systems Inc. subsidiary. The deal is SWAT's first add-on since its January 2020 investment by ORIX Capital Partners and Hastings Equity Partners and expands SWAT's service offering into catalyst handling and NIOSH-approved life-support system manufacturing and maintenance.

Kohlberg & Company has acquired Area Wide Protective (AWP), a North Canton, Ohio–based traffic control and temporary traffic safety management services provider, from The Riverside Company. Riverside retained a minority stake via its Strategic Capital Fund; AWP will be led by new CEO Ron Childress as founder/CEO John Sypek transitions to Vice Chairman. Terms were not disclosed.

Freestone Partners, a Houston-based private equity firm, acquired the assets of Warfab Industries, Inc. in partnership with Warfab management. Warfab, headquartered in Hallsville, Texas, provides heavy industrial repair, maintenance, fabrication and machining services serving mining, heavy steel, railcar and energy customers across multiple countries; the deal is intended to expand Warfab’s product offerings and geographic reach.

GrayMatter has acquired Richmond, Virginia-based E-Merge Systems to expand its Industrial Intelligence and systems-integration capabilities, including instrumentation, control, industrial networking and analytics, and to strengthen its mid-Atlantic presence. E-Merge co-founders will take on leadership roles at GrayMatter as the firm integrates E-Merge's engineering team and client portfolio across manufacturing, water/wastewater, food & beverage and energy markets.

Midwest Growth Partners led a transaction to acquire Incorp Holdings, LLC, with subordinated debt and equity provided by NewSpring Mezzanine (NewSpring Capital), Parkway Capital (Calvert Street), Lowe Capital, Spring Capital, Pete Vrettakos, and Incorp's senior management team. Incorp, an Evansville, Indiana-based specialty contractor providing insulation, scaffolding and multi-craft industrial services, will use the proceeds to expand service lines and geographic coverage to support organic and acquisitive growth.

Linx Partners, through Linx Fund II with co-investors and affiliates, has sold its securities in Metaltech Service Center, Inc. The buyer was not disclosed; the transaction provides a realization for Linx Partners' investors. Metaltech is a Houston-based value-added metal distributor and processor serving over 1,500 customers in the Gulf Coast region.

EVI Industries, Inc. has executed a definitive purchase agreement to acquire substantially all the assets and certain liabilities of Baystate Business Ventures d/b/a Eastern Laundry Systems, a Taunton, Massachusetts-based distributor of commercial and vended laundry equipment and provider of installation and maintenance services. The acquisition furthers EVI's strategy to expand its sales and service footprint and service operations in the New England market; the transaction is expected to close upon satisfaction of closing conditions.

Triton has merged four of its portfolio companies—AVS Group, Chevron TM, Fero Group and Ramudden—into a single group to create an international leader in traffic and critical infrastructure safety services. The consolidation combines local market leaders across Germany, the UK, Belgium and the Nordics to drive international growth, operational synergies and further consolidation in the sector; combined sales are stated at more than EUR 450m.

Saw Mill Capital, through its affiliated funds, has acquired RND Automation, a Lakewood Ranch, Florida-based integrator of robotics, vision systems and automation solutions for packaging and assembly. The deal expands Saw Mill's automation portfolio and formalizes a partnership with portfolio company iAutomation to cross-sell capabilities and accelerate growth; terms were not disclosed.

Energy Services of America Corporation formed a wholly owned subsidiary, West Virginia Pipeline Acquisition Company, and entered an asset purchase agreement to acquire substantially all assets of WV Pipeline, Inc. for $3.5 million cash plus a $3.0 million seller note; the transaction was expected to close December 31, 2020. The acquisition expands Energy Services' capabilities and geographic presence in gas and water distribution utility services in southern West Virginia, and WV Pipeline's leadership (David and Daniel Bolton) will remain with the business.

Borgman Capital has acquired Aerial Work Platforms, Inc. (AWP), a Wisconsin-based company that rents, sells and services aerial lift equipment, from founder and president Pat Barney. Borgman — a Milwaukee-based private equity firm — will support AWP's future growth and continuity; Associated Bank provided senior financing for the transaction.

Integrated Power Services (IPS) has acquired Industrial Electric Motor Works, Inc., a Meridian, Mississippi-based full-service electric motor and generator service company. The acquisition expands IPS’s service footprint and distribution capabilities in the Southeastern United States; Industrial Electric’s founder Tom McDaniel and his sons will join IPS to support integration.

Odyssey Investment Partners has entered into a definitive agreement to acquire Protective Industrial Products, Inc. (PIP), a global supplier of personal protective equipment, from Audax Private Equity. PIP’s management, including CEO Joe Milot, will remain in place and the Milot and Tao families will retain a significant ownership stake as Odyssey pursues organic growth and strategic add-on opportunities for the business.

Broadtree Partners, a Charlotte-based lower-middle market private equity firm, has acquired Precision Devices Inc., a 40-year-old remanufacturer and aftermarket supplier of components for the material handling industry headquartered in Wallingford, Connecticut. The transaction (supported by Bank Prov) installs Dan Brunstetter as CEO while sellers Bill Bacha and Mark Hoover remain engaged to support operations as Broadtree pursues growth of the business.

Contractors Steel, part of Chicago-based UPG Enterprises LLC, has acquired Borrmann Metal Center, a 100+-year-old metal distributor based in Burbank, California. American Discovery Capital served as financial advisor to Borrmann; the acquisition expands Contractors Steel/UPG’s national footprint and broadens product offerings in structural and distribution products across California and Arizona.

Olympic Steel Inc. (Nasdaq: ZEUS) has acquired the assets of Action Stainless & Alloys, a full-line distributor and processor of stainless steel and aluminum based near Dallas, Texas. The all-cash transaction expands Olympic Steel's specialty metals footprint and adds product and processing capabilities; terms were not disclosed.

Pritchard Industries, a portfolio company of A&M Capital Partners II, has acquired a majority interest in Global Industrial Services, Inc., a regional provider of janitorial, snow removal and landscaping services headquartered in Syosset, New York. The transaction broadens Pritchard’s exterior services capability and expands its geographic footprint (including entry into Pennsylvania), strengthening the platform’s presence in the Northeast, Midwest and Mid-Atlantic.

John Henry Foster Minnesota (a portfolio company of High Road Capital Partners) has acquired the distribution segment of Motion Tech Automation (Motion Tech Distribution, MTD). The add-on deal, JHFoster's first under High Road's ownership, closed on December 14, 2020 and will consolidate MTD into JHFoster's Eagan, Minnesota operations to broaden product offerings in motion control, automation and compressed air solutions.

Thompson Street Capital Partners portfolio company Marmic Fire & Safety Co. has acquired Chicago-based Total Fire & Safety, LLC, a provider of fire and life safety systems, equipment and related services. The add-on expands Marmic's self-performing fire protection footprint into the Chicago metropolitan area; terms were not disclosed.

Industrial Inspection & Analysis, Inc. (IIA) has acquired St. Louis Testing Laboratories, Inc. (SLTL), a St. Louis-based commercial testing laboratory founded in 1929. The acquisition expands IIA's capabilities into destructive testing (mechanical, chemical and metallurgical testing) and strengthens its geographic presence in the central United States.

Fire Safety & Protection, a portfolio company of Sunny River Management, has acquired All-Star Fire, LLC, a tenured fire and life safety services provider in the greater Atlanta market. The deal is an add-on to FSP's platform as it expands its Southeastern U.S. footprint and capabilities while All-Star's president, Kevin Biando, will remain to manage local operations.

PAI Partners has agreed to acquire Apleona Group GmbH from EQT (EQT VII) for approximately EUR 1.6 billion. Apleona, headquartered in Neu-Isenburg, Germany, is a leading European technical and integrated facility management provider with more than 20,000 employees and a strong position in the DACH region; PAI said it will pursue further consolidation and growth both organically and via M&A.

Tejas Investment Partners, a Texas-based private investment firm, has acquired Rent Equip, LLC, an Austin-headquartered construction equipment rental, sales and service company. The transaction closed September 30, 2020; Tejas said it will partner with Rent Equip's management to accelerate growth across Texas.

MFG Partners, in partnership with Merit Capital Partners and Storage Solutions' management team, has completed an acquisition of Storage Solutions, Inc., a Westfield, Indiana-based material handling and industrial storage systems integrator. The transaction transitions the company from an ESOP structure and positions Storage Solutions to expand its service lines and capitalize on growth in e-commerce and warehouse demand.

Cleveland-based private equity firm CapitalWorks completed a majority investment in Electromechanical Research Laboratories, Inc. (ERL) of New Albany, Indiana, alongside ERL President and CEO Stephen Wilkins and the ERL management team. ERL is a long-established manufacturer and repair-service provider of pumps, valves, gauging and overfill protection for the inland marine (tank barge) and rail markets; the deal includes ERL’s subsidiary Law Valve of Texas, a Houston-area on-barge repair and support business.

Belt Power LLC, a Marietta, Georgia-based distributor and fabricator of conveyor system components and a portfolio company of Shorehill Capital, completed the asset acquisition of Rubber Service Corp. on December 1, 2020. The acquisition expands Belt Power's footprint into the Denver metropolitan area and Mountain West markets; Rubber Service owner Lou Siemer will continue to lead the new Belt Power branch.

Sole Source Capital-backed portfolio company Supply Chain Services has acquired Coridian Technologies, a provider of labeling, barcoding, data collection, and RFID solutions headquartered near Chanhassen, Minnesota. The transaction is the third add-on for Supply Chain Services and expands the platform's AIDC product and services capabilities across healthcare, manufacturing, and warehouse/distribution end markets.

Area Wide Protective (AWP), a North American traffic control services provider, acquired Utah-based Traffic Safety Rentals (TSR) to expand its presence in the Salt Lake City and Ogden markets. The acquisition advances AWP's national growth strategy by strengthening its service footprint for utility, roadway maintenance and construction customers in the western United States.

Dallas-based private equity firm Crossplane Capital has completed a control acquisition of Griffin Dewatering, a Houston-headquartered provider of dewatering and water treatment services for large-scale construction, infrastructure and industrial projects. Griffin, founded in 1934 and operating from 11 locations nationwide, will partner with Crossplane to expand its complex dewatering, water treatment capabilities and national water-management platform; the company was previously a portfolio company of The CapStreet Group.

BrandSafway has acquired the assets of Big City Access, a Houston-based scaffolding and access solutions provider, effective Dec. 1, 2020. The seller was Rock Hill Capital Group, and the deal expands BrandSafway's commercial construction and infrastructure capabilities in Texas; Big City Access has ~160 employees and locations in Houston, Dallas, Austin and San Antonio.

Applus+ has acquired the entire share capital of QPS Evaluation Services Inc. from the company's founding partners. QPS is a Canada-headquartered product certification and testing specialist (133 employees; 2019 revenue ~€16m) that expands Applus+'s Laboratories division capabilities in electrical/electronics and hazardous-location product certification and broadens its North American and global footprint.

AEA Investors' Middle Market Private Equity team has acquired Process Sensing Technologies (PST), a UK-headquartered provider of moisture, oxygen and trace gas measurement instruments and systems. PST, formed through several brand combinations and acquisitions, serves end markets including life sciences, natural gas, building automation and food & beverage and has roughly 650 employees globally.

Gemini Investors completed a majority recapitalization of Action Equipment & Scaffold Company, Inc. and its Colorado division Waco Scaffolding & Equipment Company in December 2020. The transaction brings Gemini as the majority investor to support growth and continuity as CEO Howard Schapira and his family transition ownership while the companies continue to serve industrial, commercial, and municipal customers across Arizona and Colorado.

Waterlogic has acquired Hidrospot, a Bogotá-based point-of-use (POU) water dispenser provider with ~5,000 installed dispensers and about 40 employees. The deal expands Waterlogic's footprint in Latin America as part of its buy-and-build strategy while the company remains PE-backed by Castik Capital.

ASGARD Partners & Co., a private equity firm, has acquired a controlling interest in Angstrom Technology, a Grand Rapids-based provider of modular cleanrooms and controlled-environment solutions. Management will remain as a significant minority investor and ASGARD's investment will support growth initiatives, capability expansion and potential strategic acquisitions across North America.

AddSecure, a Castik Capital-backed European IoT and secure communications provider, has agreed to acquire International Security Group GmbH (ISG), a German specialist in mobile video Surveillance-as-a-Service marketed as Video Guard. The deal expands AddSecure’s capabilities into video surveillance and supports its growth strategy across construction, logistics and infrastructure markets in Europe.

Able Machinery Movers, a Grapevine, Texas-based rigging and heavy equipment-moving company (part of the Satori Capital portfolio), has acquired Diamond E Rigging, a family-owned rigging and equipment relocation business headquartered in Buda, Texas. The deal expands Able's service footprint and capabilities in the Austin–San Antonio region by adding Diamond E's skilled riggers, sales professionals, customers and specialized equipment.

Ovivo Inc., a global water and wastewater treatment equipment and systems provider, has acquired the businesses of Alar Engineering Corporation, Alar Chemical Sales Inc. and Alar Leasing Inc. (together "ALAR"). The acquisition adds ALAR's dewatering equipment, chemical products and Central U.S. presence in Mokena, Illinois, to Ovivo's industrial water capabilities and supports Ovivo's expansion in North American industrial wastewater markets.

Lowe Capital Management LLC and Construction Safety Group have acquired Incorp Holdings, LLC, a specialty insulation, scaffolding and multi-craft industrial services provider headquartered in Evansville, Indiana. The transaction, for undisclosed terms, positions Incorp to continue its growth strategy with support from a strategic partner and financial sponsor.

Mangrove Equity Partners has invested in a management buyout of Steam Turbine Alternative Resources, Inc. ("STAR"), a Marion, Ohio-based manufacturer and field installer of custom turbine seals (packing rings). The transaction backs incumbent management and aims to expand STAR's penetration into the natural gas and combined-cycle power markets while broadening product and outbound sales capabilities.

SemiTorr Group, a Transom Capital Group–backed distributor of sanitary and industrial instrumentation, has acquired California-based distributor and manufacturers' representative firm M-I-C Inc. The add-on expands SemiTorr's presence in Northern California and diversifies its product and customer base across biotech, pharmaceutical and industrial end markets; terms were not disclosed.