UK middle-market private equity firm Phoenix Equity Partners has acquired Gall Thomson Environmental (GTE), a global supplier of safety critical flow control products from Lupus Capital plc, in a transaction which values the business at GBP75 million.
This is the fifth investment from Phoenix’s GBP450 million fund, which was raised in 2010.
Phoenix is backing a management team led by Phil Clifton, former head of Weir Group plc’s Power and Industrial division, alongside the incumbent management team.
GTE represents the platform acquisition for the development of a group providing highly engineered, safety-critical flow control products, primarily serving the energy and oil and gas markets.
Phoenix’s investment, together with bank facilities provided by HSBC, Santander and RBS, will support the management team in developing and growing the business. The business is already active in 35 countries and significant investment will be made in infrastructure and personnel to facilitate the next phase of the business’ development.
Phil Clifton, GTE CEO, says: "As a result of working with the Phoenix team, we have an excellent opportunity to create a significant engineering group based on GTE’s strong and trusted position today."
John Rastrick, a Partner at Phoenix, says: "The UK has huge strength in the engineering sector and it is one we like. Phil Clifton brings great experience and ambition to GTE and we see substantial further growth potential for the business both organically and through acquisition."
GTE is the global market leader in the supply of marine breakaway couplings (“MBCs”), which are safety-critical valves, used in hose transfer systems, primarily in the offshore oil and gas market, and other industrial applications. GTE comprises two divisions – Gall Thomson, which focuses on larger bore oil and gas products and KLAW, which supplies smaller bore products for the marine and industrial markets, as well as emergency release coupling systems for ship-to-ship transfer of LNG.
