Carlyle and BC Partners to acquire Hamilton Sundstrand Industrial for USD3.46bn
Private equity firm BC Partners and alternative asset manager The Carlyle Group have signed a definitive agreement to acquire Hamilton Sundstrand Industrial, a manufacturer of pumps and compressors for the industrial, infrastructure and energy markets, from United Technologies Corporation for USD3.46bn.
The transaction is expected to close in the fourth quarter of 2012.
The investment will be funded in an equal partnership with equity from BC European Capital IX and Carlyle Partners V as well as third-party debt provided by a banking consortium.
Together, Carlyle and BC Partners plan to increase investment in the company’s product development activities and to leverage the global footprints of both firms to enable the company to accelerate its growth.
Raymond Svider, co-chairman and managing partner of BC Partners, says: “Hamilton Sundstrand Industrial is a world-class platform and we are excited about the company’s significant growth prospects, including in key emerging markets.”
Brian Bernasek (pictured), Carlyle managing director, says: “We look forward to working with the Hamilton Sundstrand Industrial team in the transition to a stand-alone company. The company is well positioned in its markets and will benefit from additional investment to fund product development and growth initiatives.”
Carlyle and BC Partners have a history of industrial investments including Carlyle’s ownership of Allison Transmission, Rexnord Corporation and AxleTech International and BC Partners’ investments in Brenntag, SGB-SMIT Group and Interpump.
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