Industrial Services Acquisitions in 2021

Transcat, Inc. (Nasdaq: TRNS) purchased all of the stock of privately-held Tangent Labs, LLC effective December 31, 2021 for $9.0 million (subject to customary holdbacks). Tangent, founded in 1995 and headquartered in Indianapolis with an additional lab in Huntsville, Alabama, provides ISO/IEC 17025-accredited calibrations to life science, aerospace and other regulated industries and will be led by owner Kevin Broderick who joined Transcat after the sale.

Waterlogic, the PE-backed global water dispenser designer and service provider, has acquired Aquamaq, a Bogota-based point-of-use (POU) water dispenser business. The deal expands Waterlogic's Colombian footprint, adds Aquamaq's blue-chip customer base across 131 cities and towns, and brings a 23-employee local team into Waterlogic's platform-driven buy-and-build strategy.

MCE (Motion & Control Enterprises) has acquired RSA, Inc. and Global Controls, Inc., a St. Charles, Illinois-based distributor of robotics, motion control, vision systems and a systems integrator serving industrial end-users and OEMs across the upper Midwest. The deal is MCE’s fourth acquisition and acts as an add-on to expand its motion control and automation product and systems-integration capabilities, supported by Frontenac, the Chicago-based private equity firm referenced in the announcement.

Sandvik AB has acquired US-based Dimensional Control Systems (DCS), a provider of dimensional quality management software and on-site engineering services, to strengthen its industrial metrology and digital manufacturing offering. DCS, headquartered in Troy, Michigan, will be reported within Sandvik's Industrial Metrology division and brings ~70 employees, 10,000 software licenses, and a software-heavy revenue mix (65% software, ~40% recurring).

Jernbro Industrial Services AB agreed to acquire all shares in GISAB (Gällivare Industriservice AB) from Axel Johnson International AB, with completion expected after approval by the Swedish Competition Authority. The deal strengthens Jernbro's local presence, capacity and service offering for industrial customers in Norrbotten—particularly in the steel and mining sectors.

Reliance Steel & Aluminum Co. has acquired Rotax Metals, Inc., a Brooklyn-based distributor of copper, bronze and brass alloys. Rotax (founded 1947) generated approximately $14 million in net sales for the 12 months ended July 31, 2021 and will operate as a subsidiary of Yarde Metals, a wholly owned Reliance subsidiary; terms were not disclosed.

Integrated Power Services (IPS) acquired National Switchgear and National Field Services, a Lewisville, Texas-based provider of power distribution equipment, field services, remanufacturing and technical training. The deal expands IPS’s power management capabilities, service coverage and distribution footprint across North America and brings National’s five locations and accredited field technicians into IPS’s network.

Pacteon, a portfolio company of GenNx360 Capital Partners, has acquired ESS Technologies, a provider of carton and packaging line design, equipment manufacturing, integration and automation solutions. The acquisition expands Pacteon's packaging line integration capabilities and strengthens its presence in the pharmaceutical, diagnostic and cosmetic end markets.

HGR Industrial Surplus has acquired Tramar Industries, a global CNC machinery marketplace, merging the two businesses to create a one-source solution for buying and selling used industrial equipment. The deal expands HGR's CNC equipment offering, geographic footprint and warehouse capacity across North America while combining complementary marketplaces and services.

American Industrial Partners (AIP) has acquired RelaDyne, Inc., a U.S. provider of lubricants, fuel, diesel exhaust fluid and industrial reliability services, from Audax Private Equity. The deal positions AIP to support RelaDyne's continued buy-and-build growth and operational initiatives; terms were not disclosed.

Glory Global Solutions, a global leader in cash automation, acquired Revolution Retail Systems LLC in December 2021. The acquisition brings Revolution's retail-focused cash management technology, nationwide field service and 24/7 monitoring capabilities into Glory's portfolio to expand its cash automation product and services offering for the retail market.

Summit Fire & Security, a subsidiary of SFP Holding (Summit Companies), has acquired Blue Flame Fire Protection, a Jacksonville, Florida-based fire and life-safety services provider. The acquisition expands Summit Fire & Security's presence and service capabilities in the Jacksonville market as part of its Florida growth strategy.

Wyloo Metals (through Wyloo Canada) entered into a binding arrangement agreement to acquire up to all outstanding common shares of Noront Resources Ltd. for C$1.10 per share via a statutory plan of arrangement. The deal, supported unanimously by Noront's board, follows BHP waiving its right to match and includes a loan to Noront to cover transaction-related costs and a termination fee paid to BHP.

Relevant Industrial, LLC (Houston, TX) acquired J&W Instruments, Inc. (New Brighton, MN) in a transaction that closed on December 21, 2021. The acquisition adds J&W's instrumentation sales, process control engineering and metrological calibration capabilities to Relevant's portfolio, expanding service offerings for food & beverage and industrial customers.

Hy-Tek Holdings, a portfolio company of Dunes Point Capital, has acquired Advanced Handling Systems (AHS), a material handling automation integrator based in Erlanger, Kentucky. AHS operates two U.S. facilities, employs about 90 people, and focuses on robotic solutions and full-service systems integration to serve end markets such as e-commerce, third-party logistics, and parcel.

Pipeline Packaging, an employee-owned US distributor of rigid industrial containers, has acquired MidStates Container Company, a full-line packaging distributor based in St. Louis, Missouri. The deal will consolidate supply lines and expand Pipeline's geographic footprint and service offerings across the U.S. Midwest.

Specialty Welding and Turnarounds (SWAT), a portfolio company backed by ORIX Capital Partners and Hastings Equity Partners, has acquired Midwest Cooling Tower Services (MWCTS) from Dorilton Capital. The acquisition adds mission-critical cooling tower inspection, maintenance, repair, parts distribution and rental capabilities to the SWAT platform; Midwest is headquartered in Krotz Springs, Louisiana and employs approximately 450 people.

Envoy Solutions, a Glenview, Illinois-based specialty distribution platform, acquired Valley Janitor Supply Company, a family-owned janitorial distributor headquartered in Hamilton, Ohio. The acquisition expands Envoy Solutions' national platform in the Midwest and adds distribution and in-house cleaning operations capabilities to serve customers across Ohio, Kentucky, and Indiana.

Reese-based D.H.T. Holdings, Inc. has acquired Byron Center-based Rohr Gasoline Equipment, Inc., a long-established provider of fuel station equipment installation, maintenance and tank services. The purchase, led by Calder Capital as adviser to Rohr, transfers ownership from Mitch Veenstra to D.H.T. to expand D.H.T.'s service capabilities in petroleum equipment and regional service-station support.

Pearlman Group, a portfolio company of The Stephens Group, has acquired Advanced Diamond Technologies, Inc. dba Vector Tools. The acquisition expands Pearlman's specialty distribution capabilities in stone fabrication tools and supplies across the U.S. Southeast; founders Elbert Wu and Corey Levy and the current management team will remain with the business. Terms were not disclosed.

Fairbanks Morse Defense (a portfolio company of Arcline Investment Management) has acquired Fluid Filtration Specialists LLC, a U.S.-based provider of flushing, filtration and testing services for marine vessels and heavy-duty engines. The add-on expands FMD's service capabilities for shipyard, defense and commercial marine customers including the U.S. Navy and U.S. Coast Guard.

Motion Industries, a wholly-owned subsidiary of Genuine Parts Company, agreed to acquire Kaman Distribution Group from Littlejohn & Co. for approximately $1.3 billion in cash. KDG, headquartered in Bloomfield, Connecticut, operates ~220 locations with ~1,700 employees and is expected to generate roughly $1.1 billion of revenue in 2022; the deal is expected to close in Q1 2022 and deliver $50M+ of run-rate synergies.

Alta Equipment Group Inc. has entered into a definitive agreement to acquire Ginop Sales, Inc., a privately held Kubota equipment dealer with three locations in Northern Michigan. The acquisition expands Alta's construction equipment footprint in Michigan (to ten locations) and strengthens its relationship with Kubota; Ginop reported approximately $65 million of revenue and $6.5 million of adjusted EBIT for the trailing twelve months ended August 2021.

Gemspring Capital (via an affiliate) has acquired a majority interest in Mantis Innovation Group from O2 Investment Partners. Mantis, a Houston-based tech-enabled facility services provider focused on energy efficiency and building performance, will partner with Gemspring to accelerate platform growth, expand services, and pursue additional M&A.

Investcorp has acquired RESA Power, a Houston-based provider of maintenance, testing, systems integration and distribution services for power distribution equipment, from Blue Sea Capital. RESA operates 20+ locations across the United States and Canada and serves over 6,000 customers; Investcorp intends to support organic growth, geographic expansion across North America and accelerate strategic add-on acquisitions.

Leonard Green & Partners and funds managed by Harvest Partners have purchased equity in Convergint Technologies from a fund managed by Ares Management and other existing shareholders. Ares remains a financial partner alongside LGP and Harvest as the transaction recapitalizes Convergint to support continued growth, geographic expansion, and add-on acquisitions.

Alta Equipment Group Inc. has entered into a definitive agreement to acquire the assets of Ambrose Equipment, LLC, a family-owned equipment distributor and LeeBoy asphalt equipment dealer based in Hooksett, New Hampshire. The acquisition expands Alta's footprint to 39 locations across 10 states; Ambrose generated approximately $35 million of revenue and $3.1 million of adjusted EBITDA on a trailing-twelve-month basis. The asset purchase is expected to close before year-end, with terms to be disclosed upon closing.

Concentric, LLC, an OnPoint Group company, has acquired Weldex Sales, the largest battery provider in Virginia. The deal expands Concentric's footprint in Virginia and adds Weldex's motive power, environmental and welding capabilities — including lithium and hybrid power solutions — to Concentric's service and distribution network.

Hawk Ridge Systems has acquired DesignPoint, merging two leading value-added resellers for Dassault Systèmes and Markforged to create coast-to-coast coverage across North America. The combined company will expand geographic coverage and deepen services and 3D printing/design solutions capabilities, creating a network of 26 offices, ~380 employees and over 33,000 customers.

LNC Partners provided senior debt and equity to Commercial Energy Specialists (CES), a Jupiter, Florida-based, tech-enabled, service-supported distributor of water treatment equipment and supplies backed by Turning Basin Capital and Vigeo Investments. The capital package is intended to support CES’s acquisitive growth strategy and enable add-on acquisitions by the platform.

Mid-State Industrial Maintenance, a portfolio company of CenterGate Capital, has acquired Elmco Industrial Services, a Van Wert, Ohio-based mechanical shop and field services provider. The add-on acquisition expands Mid-State's field and shop capabilities and increases geographic reach across aggregates, grain, food processing, and general industrial end markets.

Installed Building Products, Inc. (IBP) has acquired AMD Distribution, Inc., a Spring Valley, Minnesota-based distributor of insulation and related accessories that generates approximately $71 million of annual revenue across eight locations. The acquisition provides IBP with a new distribution platform, broadening its supply-chain capabilities, diversifying revenue and end-markets, and is expected to be immediately accretive to earnings.

John Henry Foster Minnesota, a portfolio company of High Road Capital Partners, has acquired Sensors Inc. and Sensors Integration Corp., a distributor and integrator of industrial sensing products and systems. The acquisition, completed December 2, 2021, is the second add-on for JHFoster under High Road's ownership and is intended to expand technical capabilities, supplier relationships and support growth initiatives for the combined businesses.

Transglobal Services, LLC, a Fort Worth-based infrastructure services company and portfolio company of Linx Partners, has acquired Gullett & Associates, Inc., a Houston-based infrastructure services provider founded in 1972. The acquisition expands Transglobal's turnkey asset life-cycle capabilities and Gulf Coast presence to better serve energy, electric utility, and renewable energy customers.

APPLIED Adhesives, a Minnetonka-based value-added adhesive distributor, has completed the acquisition of Bird Song Adhesives, Inc., a regional specialty adhesive supplier in Madison, Tennessee. The deal expands APPLIED's regional footprint and technical capabilities, bringing Bird Song's longstanding customer relationships into APPLIED's service network.

National Fire & Safety, a Highview Capital-backed fire protection platform, has acquired Texas Fire Alarm, a full-service fire and life safety provider headquartered in Wills Point, Texas. The acquisition expands NFS's service capabilities and presence in the Dallas market; founder Jody Parker will remain with the business.

Engineered Specialties, LLC d.b.a. RapidAir (a Pfingsten portfolio company) has acquired Alpha-Pure Corporation, a Michigan City, Indiana-based distributor of compressed air treatment and condensate management products. The add-on deal expands RapidAir's product portfolio and customer reach across distributors, contractors, automotive and farm & ranch retailers; the transaction closed November 19, 2021.

Advanced Drainage Systems (ADS) has acquired Jet Polymer Recycling, a privately owned plastic recycling company headquartered in Fort Payne, Alabama with three locations in Alabama and Georgia. The acquisition expands ADS's recycling capabilities and secures high-quality recycled polypropylene and high-density polyethylene feedstock to support ADS and its subsidiary Infiltrator Water Technologies, particularly in the southern United States.

TAM Services, an AXIS Industrial Holdings company, has combined operations with Anchor Industrial Services (AIS), a Houston-based provider of industrial specialty soft-craft services. The integration will operate under the TAM Services brand and expands AXIS/TAM's capabilities and scale across industrial end markets in Texas and the U.S. Gulf Coast.

Mountain Regional Equipment Solutions, MRES Imports LLC and PIRTEK Salt Lake City, Inc. merged into a new holding company, MRES Holdings, Inc., to combine sales, marketing and operating efforts across vocational and industrial end markets. The merger closed on August 5, 2021 and the combined organization will continue to operate under the individual brands while integrating service, distribution and mobile hydraulic/hose capabilities to reduce equipment downtime and life-cycle costs for customers.

Sweeping Corporation of America (SCA) has acquired Waste Partners Environmental, Inc. from Tejas Investment Partners. The deal expands SCA's Texas presence by adding more than 175 employees and 125 trucks across seven Texas facilities, making SCA the largest sweeping services provider in Texas.

BlackHawk Industrial Distribution, a Tulsa-based industrial distributor, acquired Dayton, Ohio-based Tools for Industry, Inc. (TFI) and affiliate Service for Industry (SFI) in a deal that closed on November 9, 2021. The acquisition expands BlackHawk's presence in southwestern Ohio and adds specialty cutting-tool manufacturing and grinding capabilities; 13 TFI/SFI associates joined BlackHawk and TFI's former president Tim Ozvath will lead integration at the Dayton branch.

Setpoint Integrated Solutions, a subsidiary of Pon Holdings B.V., has acquired Houston-based Valsource International, a specialist in control valve and pipeline repair and remanufacturing. The acquisition expands Setpoint’s Gulf Coast footprint and enhances its valve repair and service capabilities for petrochemical, refining and oil & gas customers. Financial terms were not disclosed.

Gulf Island Fabrication, Inc. acquired the services and industrial staffing businesses ("DSS") of Dynamic Industries, Inc. for $8.0 million in cash. The purchase expands Gulf Island's services offerings (including coatings, scaffolding and specialty services), nearly doubles its craft labor headcount and extends its geographic footprint into South Texas and Western Louisiana.

SBP Holdings acquired Watts Steam Store and subsidiaries effective December 1, 2021; the business will operate inside SBP's Dakota Fluid Power fluid power & automation platform. Watts Steam Store (founded by Tracy and Stanley Watts) operates three locations in Twin Falls and Idaho Falls, Idaho, and Ogden, Utah and has approximately 35 employees; the deal expands SBP's North American footprint and fluid power capabilities.

Cross-Fire & Security Co., a life-safety platform owned by private equity firm AE Industrial Partners, has acquired Alarm & Suppression, Inc., a fire alarm and suppression services provider based in Ballston Lake, New York. The deal is Cross-Fire's first add-on acquisition as the platform looks to expand geographic reach and service capabilities across the Northeastern U.S.; A&S owner Tom Murray will remain with the company and retain a minority stake.

VORTEQ Coil Finishers' senior leadership partnered with Shadowbriar Capital Partners and private investors to complete a management-led buyout of the company from Peninsula Pacific. Headquartered in Oakmont, Pennsylvania, VORTEQ operates nine continuous coil coating lines across seven locations and will work with Shadowbriar to pursue long-term strategic growth and potential add-on acquisitions.

DFW Capital Partners led a recapitalization of American Track, a Fort Worth-based provider of railroad inspection, maintenance, repair and construction services. The transaction represents an ownership transition from Hilltop Private Capital (and its capital partners) and is intended to support American Track's next stage of geographic and service expansion, including organic growth and add-on acquisitions.

Ironwood Capital has made subordinated debt and minority equity investments in Tracked Lifts, LLC, a New Oxford, Pennsylvania-based distributor of Platform Basket and Omme tracked multi-terrain and trailer-mounted aerial lifts. The financing — which involves Tenaz Capital as an existing investor/partner — will fund staffing, systems improvements and market expansion as Tracked Lifts scales operations under incoming CEO Jim Grande.

Sterling Investment Partners’ portfolio company AIMS Companies has acquired two regional infrastructure services providers: Southwest Environmental, Inc. (Phoenix, AZ) and T. Gray Utility Co. (Houston, TX). The add-on deals expand AIMS’ inspection, protection, repair and rehabilitation capabilities and deepen its municipal water/sewer offerings across Arizona and Texas as part of AIMS’ strategy to offer an integrated inspection-to-rehabilitation solution.