Middle-market private equity firm Wynnchurch Capital has agreed to sell industrial distribution platform FloWorks International to Ferguson Enterprises in a cash transaction valuing the business at approximately $1.6bn.
The deal marks the exit of Wynnchurch’s investment after acquiring the Houston-based company in January 2023 and executing an acquisition-led growth strategy that significantly expanded the business.
During its ownership, FloWorks completed seven add-on acquisitions, helping transform the company into a specialty distribution platform generating more than $1 billion in annual revenue. The acquisitions broadened the company’s product offering, diversified its industrial end markets, expanded its geographic reach and strengthened relationships with customers and suppliers.
Alongside the buy-and-build strategy, Wynnchurch worked with management to improve supply chain operations, enhance commercial capabilities and invest in technology infrastructure to support pricing and cross-selling initiatives.
FloWorks supplies engineered flow control products and technical solutions for maintenance, repair and operations (MRO) applications across sectors including chemicals, downstream refining, renewable energy and other industrial markets. Its portfolio includes valves, automation systems, corrosion-resistant flow control products, rotating equipment, filtration systems and instrumentation.
The transaction represents another sizeable realisation for Wynnchurch, which specialises in investing in middle-market industrial businesses across North America. The firm currently manages approximately $9.1bn in assets and has focused on operational improvements and strategic acquisitions to drive value creation across its portfolio.
Following completion of the transaction, FloWorks will become part of Ferguson Enterprises, providing the distributor with an expanded presence in industrial flow control products and technical services.
Wynnchurch said its investment demonstrated the firm’s strategy of combining operational value creation with targeted acquisitions to build scaled industrial platforms.
Jefferies acted as lead financial adviser to FloWorks on the transaction, with Solomon Partners also serving as financial adviser. Foley & Lardner acted as legal adviser to Wynnchurch and FloWorks.
Clearlake Capital, which retained a minority stake when Wynnchurch acquired FloWorks in 2023, also participated in the investment through the sale process. Financial terms beyond the enterprise value were not disclosed, and the companies did not indicate when the transaction is expected to close.
