Owner Resource Group Partners With Management to Acquire Majority Interest in Precision Hydraulic Cylinders
AUSTIN, June 9, 2014 – Owner Resource Group, LLC (“ORG”) announced today that it has partnered with management to acquire a majority interest in Precision Hydraulic Cylinders, Inc. (“PHC” or the “Company”).
Headquartered in Wilmington, North Carolina, PHC is a premier global manufacturer of highly engineered, custom hydraulic cylinders. PHC provides cylinders on a sole source basis for virtually all of its products to an attractive base of multinational original equipment manufacturers (“OEMs”) manufacturing heavy machinery in a variety of end markets including (a) material handling, (b) transportation, (c) construction, and (d) aerial work platform equipment. In particular, the Company maintains a market leading position in the lift truck segment.
The Company’s global state-of-the-art manufacturing platform consists of four plants across three operating divisions based in North America (“PHC USA”), Europe (“PHC UK”), and Asia (“PHC India”) which provides geographic diversification and stability to operations.
ORG Managing Director Jon Gormin commented: “We look forward to our partnership with PHC. With a global footprint and strong engineering and in-house design capabilities, PHC is well positioned for continued growth as it serves its long-standing relationships with pre-eminent OEMs.”
About the investment by ORG, Chris Barclay, President, Chairman and CEO of PHC said, “I’ve known Owner Resource Group for several years through their involvement in the fluid power industry. Their full support of management’s focus on operational execution aimed at driving superior customer value will help facilitate continued strong growth. This makes ORG the perfect partner for PHC.”
The transaction closed on May 30, 2014. Terms were not disclosed. Texas Capital Bank provided the senior financing and PNC Erieview Capital provided the subordinated debt financing.
Owner Resource Group, LLC
Owner Resource Group is an Austin, Texas based private investment firm founded to bring superior outcomes to privately held businesses. We make investments that enable business owners and management teams to pursue their objectives and accelerate the growth of their companies in a disciplined manner. We appreciate an owner’s need for fairness, certainty, flexibility and confidentiality when considering a transaction. After a transaction, our philosophy is to align our interests with management to support the existing culture and the continued growth of the business.
We can be most helpful to businesses with annual revenue greater than $15 million and the following aspirations:
» Business owners hoping to achieve a full or partial exit
» Businesses looking to expand their capabilities, offerings or geographic reach (through organic growth or by acquisition)
» Management teams that would like to establish or increase their ownership in a business