Sullair acquired by private equity firms

By Murray Pollok09 August 2012

Compressor manufacturer Sullair Corp is being sold by United Technologies Corp (UTC) to private equity firms Carlyle Group and BC Partners.

Carlyle and BC are also buying two other UTC companies - industrial pump and fluid control specialists Milton Roy Co and Sundyne Corp - and will run the three as a group, with the possibility of further add-on acquisitions. The total purchase price was US$3.46 billion.

Sullair, Milton Roy and Sundyne formed the Industrial division of UTC's Hamilton Sundstrand business. UTC has now renamed Hamilton Sundstrand's remaining aerospace business as UTC Aerospace Systems, incorporating the recently acquired Goodrich Corp business.

"The business is much more valuable as one piece and our view is we're going to build from the platform," said Mark Fariborz of BC Partners. UTS reported that the private equity firms may make further acquisitions to add to the three companies.

BC Partners and Carlyle have formed a limited partnership and will jointly oversee management of Sullair.

Henry Brooks, president of Sullair, said; "The partnership between Carlyle and BC Partners provides a unique growth opportunity for Sullair. They recognize that our business is a performance leader in our markets with great employees, great products, and vested channel partners. Additional investment in Sullair will enhance our capabilities to compete on a global scale."

Brian Bernasek, Carlyle managing director, said; "These are very strong businesses that generate excellent free cash flow and we think they can be even better with additional investment".

Sullair is one of the world's largest manufacturers of compressors, including portable models used in the rental industry as well as pneumatic tools. It has subsidiaries in China and Australia.

Both Carlyle Group and BC Partners are well established private equity firms with 25 year histories. Carlyle owns approximately 46% of Coates Hire in Australia.

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