#USA #Houston #LLCP #Flow Control #USA Industries

Levine Leichtman Capital Partners and Management Acquire USA Industries

Levine Leichtman Capital Partners, a notable private equity firm based in Los Angeles, recently made headlines by announcing its partnership with the management team of USA Industries, LLC. This collaboration marks a significant step in expanding LLCP's investment strategy as they take over the Houston-based firm from Sky Island Capital. Though the financial specifics of the deal remain under wraps, the implications for the industry could be substantial.

Founded in 1982, USA Industries has built a reputation as a leading manufacturer of industrial flow control and testing products. Their diverse offerings include piping isolation tools, tube plugs, and other essential flow devices. The company plays a critical role in several high-demand sectors such as pharmaceuticals, industrial processes, refineries, and chemical manufacturing. This strategic acquisition is expected to enhance USA Industries' capabilities and market share in these vital areas.

In a statement regarding the acquisition, Micah Levin, a partner at LLCP, expressed enthusiasm about collaborating with Justin Watts, CEO of USA Industries, noting the impressive growth the company has experienced under his management. Levin emphasized that USA Industries has proven to be an invaluable supplier, particularly to its loyal customer base. He also indicated that the partnership aims to build on this momentum and take advantage of the company's strong market position.

Andrew Alexander, Managing Director at LLCP, echoed these sentiments, stating that USA Industries' offerings are integral to a variety of high-value applications. He pointed out that the company's alignment with LLCP's investment criteria, particularly within engineered products, provides multiple attractive pathways for future growth. Alexander's vision involves leveraging USA Industries' strengths to capitalize on emerging market opportunities effectively.

Justin Watts lauded the partnership with LLCP as a significant milestone for USA Industries. He highlighted the firm's expertise in fostering growth for companies like his and mentioned that they share a common vision for the future. Watts noted that the company aims to prioritize organic growth and strategic mergers and acquisitions (M&A) while continuing to deliver top-tier products and services to its clientele.

As a platform investment of LLCP Lower Middle Market Fund III, L.P., USA Industries is positioned to refine its operational strategies and enhance its product portfolio further with LLCP's backing. Industry analysts are keenly observing how this partnership will influence the competitive landscape in the industrial products sector.

The legal aspects of the transaction were managed by Honigman LLP representing LLCP while USA Industries sought guidance from Piper Sandler & Co., who served as its exclusive financial advisor. Notably, debt financing for the acquisition was facilitated by Churchill, underscoring the structured approach that LLCP typically employs in its investment endeavors.

Levine Leichtman Capital Partners has established a distinguished reputation over its 41 years of operation, investing across diverse sectors including business services, franchising, education, and engineered products manufacturing. Their unique Structured Private Equity investment strategy, which combines elements of debt and equity, has allowed them to offer tailored solutions to various companies in their portfolio. With approximately $12.7 billion in managed assets and a robust international presence, LLCP remains a significant player in the private equity landscape.

As the partnership unfolds, stakeholders are eager to see how USA Industries will evolve and respond to the dynamics of the industrial marketplace, further solidifying its position through enhanced innovation and customer engagement.