LOS ANGELES, CA, July 11, 2014 /24-7PressRelease/ -- Reynolds Advisory Partners, LLC ("RAP") acted as the exclusive financial advisor to Roberts-Gordon, LLC ("Roberts-Gordon" or "RG"), a leading manufacturer of specialty commercial HVAC/R and industrial process and finishing equipment, in its sale to Sterling Group, L.P., an operationally focused middle market private equity firm based in Houston, Texas. Roberts-Gordon is headquartered in Buffalo, New York and has additional manufacturing facilities in Florida, Michigan, Minnesota and the United Kingdom. Eastport Partners, L.P., a New York City-based private equity firm, was the majority selling equityholder.
The parties entered into a definitive purchase agreement and also closed the transaction on July 1, 2014. Financial terms were not disclosed.
"Reynolds Advisory Partners delivered an outstanding result for Roberts-Gordon and its equityholders," said Doug Reynolds, Founder and Managing Director of RAP. "RG participates in numerous niche market segments in the U.S. and around the world, and therefore it was challenging to educate prospective buyers about the Company's myriad growth opportunities. Sterling Group is a sophisticated purchaser that recognized those growth opportunities and the attractive attributes of the HVAC/R market."
Brian MacLeod, Managing Director at RAP, stated: "We were able to generate strong interest from a substantial number of prospective acquirers, leading ultimately to the selection of The Sterling Group, which has the financial capacity and ambition to grow Roberts-Gordon into a much bigger company. That prospective growth should benefit RG's employees, customers and other stakeholders in the years ahead."
Mr. MacLeod added: "Our firm's broad industry expertise includes substantial knowledge of the industrial sector, including the HVAC/R industry. The HVAC/R industry is still in 'recovery mode', and we expect there will be continued M&A activity in this market in the next few years, involving both strategic and financial buyers. Consolidation of this fragmented industry has the potential to generate substantial synergies, including greater efficiencies in production, design & engineering, and distribution. With interest rates still low and lenders in a position to support M&A initiatives, the financial parameters of acquisitions in the HVAR/R industry remain particularly attractive."
Mr. Reynolds added: "Both Brian and I were intimately involved in this transaction from origination to completion, reflecting our firm's philosophy of providing extensive senior-banker involvement and leadership to ensure a successful outcome in all of our engagements."
About Roberts-Gordon, LLC
Headquartered in Buffalo, New York, Roberts-Gordon's predecessor company was founded in 1929. In the early 1960s, the Company pioneered the manufacture of low-intensity infrared heating systems. The Company became a world leader in this market and has grown to become a diversified manufacturer of specialty commercial HVAC/R and industrial finishing products. The Company offers its solutions through more than 250 distributors and independent representatives in the United States and Canada and over 40 countries worldwide.
About Sterling Group, L.P.
The Sterling Group is a middle market private equity firm based in Houston, Texas. Founded in 1982, Sterling Group has acquired 44 platform companies, as well as multiple add-on targets, having a total value of over $10 billion. Sterling Group acquires controlling interests in manufacturing, distribution and industrial services companies. Typical enterprise values of these companies range from $100 million to $500 million. Currently, Sterling has approximately $1 billion of committed capital under management in two active funds.
About Reynolds Advisory Partners, LLC
Reynolds Advisory Partners, LLC is a boutique investment bank with a focus on the "middle market", led by veteran investment bankers Doug Reynolds and Brian MacLeod. RAP provides a full suite of financial advisory services for mid-size and growing companies, including mergers and acquisitions and the issuance of debt and equity capital. The firm provides investment banking services throughout the USA and for cross-border transactions around the world. For information, visit http://www.reynoldsap.com.
Reynolds Advisory Partners, LLC - Investment Banking Contacts:
Douglas E. Reynolds, Managing Director: email@example.com. 626-316-6090
Brian MacLeod, Managing Director: firstname.lastname@example.org. 626-316-6092
Source: Reynolds Advisory Partners, LLC
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