Global Tubes Acquired by AMETEK, Inc.
May 08 2015 - 8:31AM
Business Wire
News Summary
- Global Tubes is comprised of two
businesses – Superior Tube Company, Inc. (Collegeville, PA) and
Fine Tubes Ltd. (Plymouth, UK) – and was created in 2012 after they
were acquired by The Watermill Group
- Sale price of $200 million represents
significant return for The Watermill Group and its investors
- EBITDA more than doubled as a result of
Watermill’s innovative approach to helping companies achieve their
full potential through strategic transformation
The Watermill Group, a strategy-driven private investment firm,
today announced the sale of Global Tubes to AMETEK, Inc.
(NYSE:AME), a leading global manufacturer of electronic instruments
and electro-mechanical devices, for approximately $200 million.
With annual sales of approximately $120 million, Global Tubes is a
leading manufacturer of highly specialized precision metal tubing
from a wide variety of metals and alloys including stainless steel,
nickel, zirconium, and titanium. Its products are used in highly
engineered applications serving the aerospace, energy, power
generation, and medical markets.
At the time Watermill acquired the businesses in 2012, Fine
Tubes Ltd. and Superior Tube Company, Inc. were operated
independently by a family holding company. Since uniting the two
companies under the Global Tubes name, Watermill and management
overhauled both production facilities in order to streamline
manufacturing operations, increased production capacity, upgraded
equipment, and decreased product lead times to provide enhanced
value to customers. As part of a Watermill-led strategic planning
process, the firm also re-focused on the needs of key customer and
market segments, with a corresponding strengthening of capabilities
and engineering resources. The refreshed strategy, operations
excellence initiatives, and key management hires under Watermill
ownership built a strong foundation for accelerated sales
growth.
“We are very pleased with the Global Tubes transformation. In
just under three years, the business has developed from two
disparate entities that were challenged to keep up with production
demands, into an integrated global tubing platform that is adept at
anticipating market needs and delivering mission-critical products
for its customers. This reinvention is reflected in the fact that
revenue has improved by 16% and EBITDA has more than doubled,”
stated Steven E. Karol, Managing Partner and Founder of The
Watermill Group. “We believe Global Tubes will be a strong fit for
AMETEK.”
“With Watermill, Superior Tube and Fine Tubes have made
significant advancements in service levels and built a strong
foundation for accelerated global growth,” stated David Robinson,
Chairman of Global Tubes and a Watermill advisor. “Utilizing
AMETEK’s four key strategies, Global Tubes will bring its customers
an even more enhanced specialty metals offering.”
Global Tubes joins AMETEK as part of its Electromechanical Group
(EMG) – a differentiated supplier of electrical interconnects,
precision motion control solutions, specialty metals, thermal
management systems, and floor care and specialty motors.
Goodwin Procter LLP provided legal counsel on the sale of Global
Tubes to AMETEK.
About The Watermill Group
The Watermill Group is a strategy-driven private investment firm
that revitalizes companies to reach their full potential. For more
than three decades, Watermill has been acquiring, operating and
improving companies. Watermill looks for businesses in which it can
apply a unique combination of strategic insight and management
expertise to re-imagine their future and drive growth.
About AMETEK
AMETEK is a leading global manufacturer of electronic
instruments and electro-mechanical devices with annual sales
of $4.0 billion. AMETEK's Corporate Growth Plan is based
on Four Key Strategies: Operational Excellence, Strategic
Acquisitions, Global & Market Expansion and New Products.
AMETEK's objective is double-digit percentage growth in earnings
per share over the business cycle and a superior return on total
capital. The common stock of AMETEK is a component of
the S&P 500 Index.
About Fine Tubes, Ltd.
Fine Tubes Ltd., located in Plymouth, United Kingdom, is a
leading European manufacturer of high-precision metal tubing in
stainless steel, nickel, titanium and zirconium alloys. The company
has a fully integrated facility for the manufacture, research and
development of high-quality metal tubes in seamless, welded and
welded-and-drawn forms. Fine Tubes’ tubing solutions are designed
for use in environments that endure extreme temperatures, pressure,
dynamic stress and corrosion, including critical-tolerance
applications in the aerospace, medical and energy industries.
Incorporated in 1943, Fine Tubes’ long history of success stems
from its proven ability to consistently develop and manufacture
complex, high-performance engineered tubing that meets the
stringent quality requirements of the world’s most demanding
applications.
About Superior Tube Company, Inc.
Superior Tube Company is a leading North American manufacturer
of high-precision, small diameter metal tubing used primarily in
highly engineered applications in the nuclear, aerospace, medical
and durable goods markets. Superior Tube manufactures tubing to
tight tolerances and to custom specifications using stainless
steel, nickel alloys, high-temperature alloys and reactive metals.
The company was founded in 1934 to produce high-quality, small
diameter steel tubing for the aircraft industry.
CXO Communication for WatermillSandy George,
617-413-6126sandy@cxocommunication.com
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