Objective, Investment Banking & Valuation (“Objective”), an award-winning middle market investment banking and valuation firm, is proud to announce its role as the exclusive sell-side advisor in the sale of Fluid Components International (“FCI”) to Process Sensing Technologies (“PST”), a portfolio company of AEA Investors.
This acquisition marks a significant expansion for PST into the flow meters segment of the industry, leveraging FCI’s reputation for high-quality, dependable products used in chemical, water and wastewater, oil and gas, power, aerospace, and nuclear power applications. This strategic acquisition by PST not only enhances their capabilities but also aligns with their existing expertise, paving the way for new opportunities and advancements in their field.
Fluid Components International (“FCI”) stands out for its over five decades of expertise in offering superior performance, quality, and durability that surpass industry standards. The California-based company employs a dedicated team of more than 200 professionals under the leadership of President Randy Brown and his talented management team.
Case Study Details
Business Overview & Owner Objectives
Fluid Components International (“FCI” or the “Company”) is a manufacturer of thermal dispersion flow and level measurement instrumentation. FCI solves flow and level measurement applications for industrial process and plant applications using patented thermal dispersion flow measurement technologies. With almost 60 years of experience and the world’s largest installed base of thermal flow meters, flow switches and level switches, customers count on FCI to know their applications and have the proven solutions that will save time and expense.
FCI received a purchase offer from a larger industry player, Process Sensing Technologies (“PST”), a portfolio company of AEA Investors. The attraction was FCI’s product portfolio, which filled a gap in PST’s offering, and the Company’s longstanding reputation for innovation and excellence.
Process
Directly following PST’s offer, FCI’s Ownership hired Objective to assist in completing the transaction. Objective worked with FCI’s Owners, Management, and legal counsel, as well as counterparts at PST and AEA Investors, to finalize an LOI, facilitate buyer due diligence, coordinate diligence meetings, prepare ad hoc analyses, and provide negotiations guidance.
Challenges
Coordinating the completion of a deal of this magnitude and complexity is always a challenge given the high stakes, time sensitivity, and sheer amount of information to provide to the buyer and their advisors. The transaction was also challenging given the number of entities and jurisdictions (U.S., Netherlands, Hong Kong) in which FCI has operations and employs professionals.
Results
Objective facilitated the FCI sale process rapidly, approximately four months, and maintained the full original offered price to the closing. PST now owns FCI, a highly strategic add-on with a great management team. PST proved to be an honorable buyer, also with great professionals, and they now have the opportunity through synergies to accelerate the notable success they have historically had. The transaction was a win-win for all involved.
If you would like to discuss your own transaction goals contact the Managing Directors from our M&D Industry Group below, or reach out at (800) 849-7010 or [email protected] to be directed to the appropriate team member.
Disclosure
The above testimonials may not be representative of the experience of other customers and past performance is not a guarantee of future performance or success.
This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.
