San Mateo, CA | January 29, 2019 – Bertram Capital (“Bertram”) announced today it has partnered with the executive management team to acquire Flow Control Group (the “Company”) from AEA Investors SBF. Based in Charlotte, North Carolina, Flow Control Group is the largest independent specialty flow control and fluid handling distribution platform in North America, servicing more than 10,000 customers and 2,000 suppliers. Terms of the transaction were not disclosed.
“Flow Control Group serves a key role in providing mission-critical, complementary products enabling customers to operate their manufacturing facilities efficiently and effectively,” said Jeff Drazan, Managing Partner of Bertram Capital. “Flow Control Group has successfully executed a buy-and-build strategy to acquire the best regional distributors in the industry. In addition to partnering with our industrials team, led by Kevin Yamashita, Tim Heston and Ray Kataria, Flow Control Group will work closely with Bertram Lab’s IT services team to support its growth initiatives.”
Flow Control Group was founded in 2014 and has completed 18 acquisitions since its inception. With 47 locations across the U.S. and Canada, Flow Control Group is well-positioned to serve the evolving needs of a market driven by technical sales and service relationships between distributors and customers, both nationally and locally.
The Company’s senior leadership team, with the support of Bertram, will continue to pursue its buy-and-build strategy, targeting businesses with strong market reputations and entrenched customer and supplier relationships in complementary geographies. The team will also focus on organic growth initiatives, including further diversifying the Company’s product portfolio, expanding its geographic presence and increasing share-of-wallet with existing customers.
A&M Capital Opportunities also participated in the transaction as a direct investor in Flow Control Group.
About A&M Capital Opportunities:
A&M Capital Opportunities (“AMCO”), with total capital commitments of $500 million, is Alvarez & Marsal Capital’s (“AMC”) lower middle-market growth strategy, focused on shared control and structured minority equity investments in North America. AMCO partners with business owners and management teams to help recapitalize and grow businesses, leveraging deep operational capabilities and industry relationships to position them for accelerated long-term growth. AMCO has significant experience with all types of transactions, including growth equity, growth buyouts, recapitalizations, and consolidations of fragmented sectors.
About Alvarez & Marsal Capital:
Alvarez & Marsal Capital is a multi-strategy private equity investment firm with over $3 billion in total assets under management across four funds and three investment strategies. The privately-owned firm is led by a highly experienced investment team, which is augmented by its strategic association with Alvarez & Marsal (“A&M”), one of the largest operationally-focused advisory firms in the world. AMC’s business model combines a focus on middle-market private equity investing with the deep operational expertise, industry knowledge and global corporate relationships of A&M, making it a uniquely attractive partner to management teams, corporates and business owners.