Transom Capital Group has sold SemiTorr Group to FloWorks, a portfolio company of Clearlake Capital Group, L.P.

SemiTorr Group

SemiTorr Group, headquartered in Tualatin, Oregon, is a leading value-added distributor of highly engineered flow control components, systems and solutions to blue-chip customers in the United States. The company’s product offering includes processing equipment, pumps, tubing, hoses, fittings, valves, filtration and instrumentation, among others. SemiTorr offers its products and services to the high purity, sanitary and general industrial sectors. The company maintains a premium brand driven by innovative, custom solutions grounded in its highly technical expertise and a consultative sales approach. The company is supported by favorable secular demand trends across key end markets, where its solutions address customers’ most technical problems and mission-critical needs.

The Deal

Under the stewardship of Transom Capital Group, SemiTorr saw exceptional performance and meaningful growth on both an organic and inorganic basis. Demonstrating the company’s ability to serve as a platform for growth, SemiTorr completed and integrated multiple complementary and accretive add-on acquisitions since 2018.

Launching in September 2021, Lincoln drove a highly efficient sale process to close the deal by year-end and deliver an excellent outcome for SemiTorr’s shareholders and management team. The process included both financial and strategic buyers and received high interest from a significant number of parties. Working closely with management and Transom, Lincoln’s industry expertise and nimbleness ultimately resulted in a smooth transaction from start to finish, within a tight window and during a historically busy deal market.

Our Perspective

Brad Keyworth, Managing Director in Lincoln’s Business Services Group, who leads the firm’s distribution sector coverage, commented, “Flow control is a large, growing market that has attracted considerable attention from buyers and investors over the last several years across different parts of the supply chain, including and specifically distributors. Transom found an attractive platform in SemiTorr, with its strong position in the high purity sector and in partnership with management scaled the business through organic growth and mergers and acquisitions. In doing so, Transom and management enhanced the value of the overall platform by diversifying the business into the sanitary and industrial markets. SemiTorr differentiates itself in the market by its compelling value proposition to both suppliers and customers, and the secular growth drivers of its end markets made the business very attractive and complementary to potential acquirers. We look forward to seeing SemiTorr’s continued evolution as part of the FloWorks platform.”

Transom

Transom, headquartered in Los Angeles, California, is a private equity firm that invests in the consumer, industrial and media sectors. Since its inception in 2008, the firm has raised over $600 million in capital. Transom’s investment thesis relies upon functional expertise, access to capital and value creation initiatives to drive operational efficiencies, significant top-line growth and positive outcomes for all stakeholders of its transactions.

FloWorks

FloWorks is a leading provider of flow control products and technical services to industrial-focused customers. The company goes to market through its legacy brands of Sunbelt Supply, Major Inc., Oliver Equipment Company, Genesis Systems Inc. and Triple S, operating over 45 strategically located facilities worldwide. Its strong local presence, serving customers in these geographic regions enables the company to reduce order response times provide a high level of service and establish long-term customer relationships.

Clearlake Capital Group

Founded in 2006, Clearlake Capital Group, L.P. is a leading investment firm operating integrated businesses across private equity, credit and other related strategies. With a sector-focused approach, the firm seeks to partner with experienced management teams by providing patient, long-term capital to dynamic businesses that can benefit from Clearlake’s operational improvement approach, O.P.S.® The firm’s core target sectors are industrials, technology and consumer. Clearlake currently has over $60 billion assets under management, and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas. More information is available at clearlake.com and on Twitter @ClearlakeCap.

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