M&A Deal Summary

Cortec Group and Twin Brook Capital Partners Acquire Rotating Machinery Services

On June 10, 2019, private equity firm Cortec Group and mezzanine finance firm Twin Brook Capital Partners acquired business services company Rotating Machinery Services from Incline Equity Partners

Acquisition Highlights
  • This is Cortec Group’s 3rd and Twin Brook Capital Partners’ 2nd transaction in the Business Services sector.
  • This is Cortec Group’s 38th and Twin Brook Capital Partners’ 8th transaction in the United States.
  • This is Cortec Group’s 2nd and Twin Brook Capital Partners’ 1st transaction in Pennsylvania.
Investment Fate
  • Rotating Machinery Services was sold to a consortium of financial buyers in 2022.

M&A Deal Summary

Date 2019-06-10
Target Rotating Machinery Services
Sector Business Services
Buyer(s) Cortec Group
Twin Brook Capital Partners
Sellers(s) Incline Equity Partners
Deal Type Secondary Buyout
Advisor(s) Piper Jaffray Companies
Lincoln International (Financial)
Dentons Cohen & Grigsby (Legal)

Target

Rotating Machinery Services

Bethlehem, Pennsylvania, United States
website
Rotating Machinery Services is a provider of specialty aftermarket repair, maintenance, and overhaul services for large, highly engineered rotating machinery. RMS’s solutions improve performance and extend the useful life of complex machinery used in customers’ critical industrial processes. Rotating Machinery Services was founded in 1997 and is based in Bethlehem, Pennsylvania.

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Buyer(S) 2

Buyer

Cortec Group

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1984
PE ASSETS 4.6B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Cortec Group, Inc. is a private equity firm focused on acquiring mid-sized businesses operating in basic industries. Cortec Group is an experienced and knowledgeable investor in healthcare products and services, B2C and B2B products, value-added distribution (including eCommerce), and specialty services companies with revenues of $40-$300 million and EBITDA of $7 to $35+ million. The Cortec Group was formed in 1984 and is based in New York City.


DEAL STATS #
Overall 39 of 44
Sector (Business Services) 3 of 4
Type (Secondary Buyout) 15 of 16
State (Pennsylvania) 2 of 2
Country (United States) 38 of 43
Year (2019) 2 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-10 Aspen Medical Products

Irvine, California, United States

Aspen Medical Products is a designer, developer, manufacturer, and marketer of upper and lower spinal orthopedic bracing products. Aspen primarily sells its products through the acute care market, as they offer a high level of motion restriction and are used by patients in need of short-term treatment from severe injuries, have urgent medical conditions, and are recovering from surgery. Aspen Medical Products was founded in 2000 and is based in Irvine, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-03 Vidaris

New York, New York, United States

Vidaris, Inc. is a provider of niche consulting services within the architecture, engineering and construction industries focusing on high‐performance buildings and specialty structures. Vidaris, Inc. was founded in 1923 and is based in New York City.

Sell -
DESCRIPTION

Twin Brook Capital Partners is a provider of senior financing to small and mid-sized profitable companies. The Firm looks to offer a variety of credit and equity solutions including revolvers, senior loans, unitranche loans, mezzanine financing, and equity co-investment to US-based companies with $3 to $50 million in EBITDA. Target sectors include industrial, manufacturing, business services, financial services, insurance, aerospace/defense, distribution, healthcare, and software/tech enabled services. Twin Brook Capital Partners is based in Chicago, Illinois.


DEAL STATS #
Overall 8 of 22
Sector (Business Services) 2 of 2
Type (Secondary Buyout) 4 of 10
State (Pennsylvania) 1 of 2
Country (United States) 8 of 21
Year (2019) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-18 The Service Companies

Miami, Florida, United States

The Service Companies is a provider of managed services, food and beverage staffing, and specialty cleaning services for the hospitality and gaming industries. The Service Companies operates nationally, providing services ranging from turn-key housekeeping and stewarding services to EVS cleaning of public areas, kitchens, windows, and chandeliers to fully trained staffing services.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-08-22 Oral Surgery Partners

Houston, Texas, United States

Oral Surgery Partners is an oral surgery practice management company, that provides professional management services for leading oral diagnostic and surgical practices for any issues that affect the mouth, teeth, and facial region. Oral Surgery Partners is based in Houston, Texas.

Buy -

Seller(S) 1

SELLER

Incline Equity Partners

Pittsburgh, Pennsylvania, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1982
PE ASSETS 5.8B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Incline Equity Partners is a private equity firm focused on lower middle-market growth companies. The Firm targets companies located in the US and Canada with enterprise values ranging from $25 to $750 million. Prospective transaction types include buyouts, minority recapitalizations, and corporate divestitures. Incline Equity Partners was formerly known as PNC Equity Partners. The Firm is based in Pittsburgh.


DEAL STATS #
Overall 28 of 39
Sector (Business Services) 4 of 5
Type (Secondary Buyout) 14 of 23
State (Pennsylvania) 5 of 5
Country (United States) 27 of 38
Year (2019) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-04 Unified Power

Terrell, Texas, United States

Unified Power is an independent provider of preventative maintenance and repair services for uninterruptible power systems (“UPS”). Unified Power was founded in 1993 and is based in Terrell, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-27 Brown & Joseph

Itasca, Illinois, United States

Brown & Joseph is a provider of commercial accounts receivable management solutions, with a focus on the insurance industry. The Company principally specializes in B2B third-party collection services, but also provides first-party collection services and insurance premium audits. Brown & Joseph was founded in 1996 and is based in Itasca, Illinois.

Buy -