Corporate Carve-Outs

Founded in 1999, Rockwood Equity Partners is an operationally-focused, private investment firm that invests in lower middle market companies, corporate carve-outs, and micro-cap go-private transactions. The firm is recognized for its ability to execute varied/complex transactions addressing the unique needs of corporate sellers. Rockwood focuses on carve-outs headquartered in North America with $2 to $7 million in EBITDA (revenues typically $10-$75 million) and will consider carve-outs of any size and geography that fit as add-on investments for our portfolio companies.

Rockwood is a leading private equity investor in divestitures or sales of a division or business in the industrials, healthcare, and distribution markets.  Carve-outs are inherently more complex, and Rockwood has a demonstrated ability to provide sellers with certainty and speed to close. Our deep knowledge in our target markets allows us to greatly reduce the need for lengthy transaction services agreements and drawn-out due diligence processes.

Rockwood has a proven track record in executing carve-out transactions, including:

Carve-out from RAD Electronics in a distressed situation. Astrex is a value-added distributor of electronic connectors and accessories primarily serving the military and aerospace end markets. Rockwood acquired the business in 2008 and sold it to TTI, Inc. in 2014.

Carve-out of a larger valve division of SPX Corporation (NYSE: SPX), which had acquired DeZurik as part of its purchase of General Signal. DeZurik is a manufacturer of valves and related equipment for water and wastewater markets. Rockwood acquired the business in 2004 and sold it to Granite Equity Partners in 2015.

Carve-out of an operating division of FuelCell Energy (NASDAQ: FCEL). FuelCell Energy did not feel its thermoelectric generator and heater business fit with its strategic direction. Rockwood acquired the business in 2004 and sold it to Gentherm Incorporated (NASDAQ: THRM) in 2014.

Rockwood recapitalized Amistco in July 2011 in partnership with the company’s founder. Later that year, Rockwood merged Amistco with a carve-out of the separations and mass transfer business of ACS Industries., Inc. The merged entity, AMACS, provides solutions for a wide range of separation applications, including mist eliminators, mass transfer products and wedge wire screen products and is part of Rockwood’s current portfolio.

 To discuss an corporate carve-out acquisition opportunity, please contact:
Kate Faust
kfaust@rockwoodequity.com
(216) 278-7070