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Private equity firm buys SPX Air Filtration, sells Universal Air Filter
filtration
industryANALYST ISSN 1365-6937 August 2008
www.filtrationindustryanalyst.com
Private equity firm buys SPX Air Filtration, sells Universal Air Filter
T
he Riverside Co has emerged as the buyer of SPX Air Filtration Ltd, a subsidiary of SPX Corp (see Filtration Industry Analyst, July 2008). The private equity firm has also divested Universal Air Filter Co (UAF), which it acquired in 2005, to St Louis-based buyout firm Thompson Street Capital Partners. SPX Air Filtration manufactures and distributes a range of air filtration products for comfort air, clean process air and medical systems air filtration. The portfolio of products includes Vokes-Air, Scandfilter, AtexFilter, Industri-Filter, Climavent, Infiltro and Seasonmaster. The business serves more than 5000 customers, mainly in Europe. SPX Air Filtration operates ISO certified manufacturing facilities in Svenljunga, Sweden; Sprockhövel, Germany; Burnley, UK; and Geldrop, the Netherlands. The company also has distribution centres in eight other countries. “Riverside sees great potential in the air filtration market,” said Riverside partner Thomas Blomqvist. “And we are excited about the opportunity to work with the management team to further improve SPX Air Filtration’s already strong market position and expand the business in existing markets and beyond.” The acquisition of SPX Air Filtration is the first investment for Riverside’s recently opened Stockholm, Sweden office. Meanwhile, Riverside has sold UAF, a designer and manufacturer of customized air filter solutions to Thompson Street Capital Partners. “UAF’s performance has been exceptional throughout our hold period,” said Will Bixby, Riverside partner. “The company has transitioned from a small family-owned business into a strong global player well positioned for a bright future. Together,
Riverside and UAF’s outstanding management team further diversified the company’s revenues from telecom by aggressively targeting industries such as computer networking, industrial machinery, medical, transportation, military and power generation; expanded engineering staff to build technological industry leadership; and enhanced the company’s aftermarket presence.” Headquartered in Sauget, Illinois, USA, UAF specialises in customized air filtration products used in high-end electronics equipment applications requiring forced-air cooling. “Riverside provided the capital and tools in order to facilitate growth,” said Todd Deibel, chief executive officer (CEO) of UAF. “We utilized resources within the Riverside Toolkit to assist management in opening a sales office in South China that is within proximity to many of our customers. Riverside has proven to be an effective partner in strengthening our position as a global leader in the filtration market.” Riverside is a global private equity firm that specializes in investing in smaller end of the middle market (SEMM) companies (valued at up to US$200 million). For further information, visit www.riversidecompany. com, www.spxairfiltration.eu, www.spx.com, www.uaf. com and www.thompsonstreet.net
COMMENT The Riverside deals put private equity and the filtration industry once again in the spotlight. The nature of the filtration sector means there are plenty more SEMM companies out there with real potential. ■
Contents Company Profile Christ Water Technology
5
Pentair
6
Company Watch Alfa Laval
7
Cantel Medical
7
Donaldson
8
Eaton
8
MFRI
9
Pall
9
Diary
15
Dividends
11
Exchange Rates
16
Financial Calendar
14
In Brief
3,4
Market Report The filtration equipment market in South America
10–11
New Product Developments
14
News Private equity firm buys SPX Air Filtration, sells United Air Filter
1
Nitto Denko plans water R&D centre in Singapore
2
Mann+Hummel expands in South Korea by acquiring 100% of JV
2
Minntech to relocate Dutch manufacturing operations to the US
2
3M to acquire Swiss filtration supplier
3
Shareholders meet to consider new Peerless holding company
3
Dow to build global water technology development centre in Spain
3
MFRI stockholder proposal unsuccessful
4
Membrana completes plant expansion
4
Amiad upbeat on H1 performance
4
ItN Nanovation signs cooperation agreement with SJE Rhombus
4
Flanders eyes global expansion
16
H2O Innovation makes further acquisition in the US
16
Orders & Contracts People & Appointments Stock Watch
13 12 15
ISSN 1365-6937/08 © 2008 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
industryANALYST ISSN 1365-6937 August 2008
www.filtrationindustryanalyst.com
Private equity firm buys SPX Air Filtration, sells Universal Air Filter
T
he Riverside Co has emerged as the buyer of SPX Air Filtration Ltd, a subsidiary of SPX Corp (see Filtration Industry Analyst, July 2008). The private equity firm has also divested Universal Air Filter Co (UAF), which it acquired in 2005, to St Louis-based buyout firm Thompson Street Capital Partners. SPX Air Filtration manufactures and distributes a range of air filtration products for comfort air, clean process air and medical systems air filtration. The portfolio of products includes Vokes-Air, Scandfilter, AtexFilter, Industri-Filter, Climavent, Infiltro and Seasonmaster. The business serves more than 5000 customers, mainly in Europe. SPX Air Filtration operates ISO certified manufacturing facilities in Svenljunga, Sweden; Sprockhövel, Germany; Burnley, UK; and Geldrop, the Netherlands. The company also has distribution centres in eight other countries. “Riverside sees great potential in the air filtration market,” said Riverside partner Thomas Blomqvist. “And we are excited about the opportunity to work with the management team to further improve SPX Air Filtration’s already strong market position and expand the business in existing markets and beyond.” The acquisition of SPX Air Filtration is the first investment for Riverside’s recently opened Stockholm, Sweden office. Meanwhile, Riverside has sold UAF, a designer and manufacturer of customized air filter solutions to Thompson Street Capital Partners. “UAF’s performance has been exceptional throughout our hold period,” said Will Bixby, Riverside partner. “The company has transitioned from a small family-owned business into a strong global player well positioned for a bright future. Together,
Riverside and UAF’s outstanding management team further diversified the company’s revenues from telecom by aggressively targeting industries such as computer networking, industrial machinery, medical, transportation, military and power generation; expanded engineering staff to build technological industry leadership; and enhanced the company’s aftermarket presence.” Headquartered in Sauget, Illinois, USA, UAF specialises in customized air filtration products used in high-end electronics equipment applications requiring forced-air cooling. “Riverside provided the capital and tools in order to facilitate growth,” said Todd Deibel, chief executive officer (CEO) of UAF. “We utilized resources within the Riverside Toolkit to assist management in opening a sales office in South China that is within proximity to many of our customers. Riverside has proven to be an effective partner in strengthening our position as a global leader in the filtration market.” Riverside is a global private equity firm that specializes in investing in smaller end of the middle market (SEMM) companies (valued at up to US$200 million). For further information, visit www.riversidecompany. com, www.spxairfiltration.eu, www.spx.com, www.uaf. com and www.thompsonstreet.net
COMMENT The Riverside deals put private equity and the filtration industry once again in the spotlight. The nature of the filtration sector means there are plenty more SEMM companies out there with real potential. ■
Contents Company Profile Christ Water Technology
5
Pentair
6
Company Watch Alfa Laval
7
Cantel Medical
7
Donaldson
8
Eaton
8
MFRI
9
Pall
9
Diary
15
Dividends
11
Exchange Rates
16
Financial Calendar
14
In Brief
3,4
Market Report The filtration equipment market in South America
10–11
New Product Developments
14
News Private equity firm buys SPX Air Filtration, sells United Air Filter
1
Nitto Denko plans water R&D centre in Singapore
2
Mann+Hummel expands in South Korea by acquiring 100% of JV
2
Minntech to relocate Dutch manufacturing operations to the US
2
3M to acquire Swiss filtration supplier
3
Shareholders meet to consider new Peerless holding company
3
Dow to build global water technology development centre in Spain
3
MFRI stockholder proposal unsuccessful
4
Membrana completes plant expansion
4
Amiad upbeat on H1 performance
4
ItN Nanovation signs cooperation agreement with SJE Rhombus
4
Flanders eyes global expansion
16
H2O Innovation makes further acquisition in the US
16
Orders & Contracts People & Appointments Stock Watch
13 12 15
ISSN 1365-6937/08 © 2008 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.