Industrial Growth Partners VI, L.P., a private equity firm based in the United States, has completed its acquisition of Hultec USA, Inc., S&B Technical Products, Inc. and their affiliated entities and subsidiaries on March 31, 2023.
| Acquirer | Target | Value | Type | Date Closed |
|---|---|---|---|---|
| Industrial Growth Partners VI, L.P. | Hultec USA, Inc., S&B Technical Products, Inc. and their affiliated entities and subsidiaries | Undisclosed | Acquisition | March 31, 2023 |
| Advisors: Buy-side: Kroll, Legal: Kirkland & Ellis LLP. Sell-side: Kelly Hart & Hallman. | ||||
The rationale for the deal is to accelerate Hultec’s growth by pursuing key strategic initiatives aimed at enhancing its market leadership in pipe sealing solutions and expanding into new geographic markets.
Deal Mechanics
The terms of the transaction, including financial details, were not disclosed. The acquisition was facilitated by Kroll as sell-side advisor to Hultec and Kirkland & Ellis LLP providing legal counsel on the buy side for Industrial Growth Partners VI, L.P.
Strategic Rationale
Hultec is a leader in pipe sealing solutions with operations across North America. The acquisition by Industrial Growth Partners aims to leverage Hultec's technological expertise and brand strength to further drive innovation within the industry and broaden its service offerings to meet customer needs more comprehensively.
Financial Context
Hultec’s financial performance details were not released publicly, but the company has been recognized for its strong track record of profitability and growth in its market niche. Industrial Growth Partners' investment strategy focuses on high-growth potential companies within the industrial sector.
Advisors
The deal was advised by Kroll as sell-side advisor, with Kelly Hart & Hallman also providing legal counsel to Hultec. On the buy side, Kirkland & Ellis LLP acted as lead legal counsel for Industrial Growth Partners VI, L.P.
Outlook
Hultec’s management expects this new partnership will enable significant opportunities for expansion and innovation, positioning the company to further capitalize on its position in the pipe sealing market. With support from Industrial Growth Partners, Hultec aims to continue delivering best-in-class solutions for clients across various sectors.