Bessemer Investors LLC (Bessemer), a New York-based investment firm, is to make a significant investment in Tencarva, a distributor of flow control and process equipment solutions and services to the industrial and municipal end-markets.
Bessemer will partner with Tencarva’s existing management team, including President Ed Pearce, who will continue leading the Company, to support the Company’s growth. Financial terms of the transaction were not disclosed.
Pearce says: “We are very pleased to have established this partnership with Bessemer and are confident that they are a great steward to retain our culture and lead our business into the future. Bessemer understands our vision and recognises the value of our industry-leading employees, including over 100 employee equity owners in the business who will retain significant stakes going forward. We believe Bessemer’s values and longer-term, more flexible capital base is the right match for our employee-owned business and will assist us in our next phase of growth.”
With over 350 employees across 28 locations in the Southeast, Tencarva provides high quality flow control and process equipment solutions and services on behalf of its industry-leading original equipment manufacturer (OEM) partners. Tencarva focuses on providing top-quality equipment and best-in-class repair and support services to both industrial and municipal end-customers.
Andrew Mendelsohn, Principal at Bessemer, says: “We are excited to partner with Tencarva and build on their 40-year history of growth, strong execution and long-term partnerships with their OEM partners. Tencarva’s highly skilled salesforce of degreed engineers and repair service providers is a unique differentiator within the industry. Their business sits at the intersection of two of our key investment areas of focus: value-added distribution and flow control, and our capital base offered the Company an attractive alternative to traditional private equity.”
Wells Fargo served as financial advisor to Tencarva, while Schell Bray served as legal counsel. William Blair served as financial advisor to Bessemer Investors and Akin Gump Strauss Hauer & Feld LLP served as legal counsel. Barings is leading the debt financing for the transaction.
The transaction is expected to close prior to year-end 2021.
