Arlington Capital Partners Announces the Sale of United Flexible to Smiths Group
WASHINGTON, DC, October 4, 2018 – Arlington Capital Partners today announced the signing of a definitive agreement to sell one of its portfolio companies, United Flexible, Inc., to Smiths Group plc.
United Flexible is a global leader in the design, development, manufacture, and support of high performance and mission-critical engineered solutions for the transfer of fluids and gases in extreme environments. The Company provides a broad portfolio of product lines including fixed and flexible tubes and precision bellows, which are made to exacting requirements and sold to leading OEMs in attractive end-markets such as aerospace/defense engines and systems, industrial, and power generation.
Peter Manos, a Managing Partner at Arlington Capital, said, “Through a combination of organic growth and acquisitions, United Flexible has more than doubled its sales and significantly increased its profitability during the course of our ownership, while also adding significant new capabilities and expanding its customer base. We are proud of the strategic value we have built in partnership with the management team, and look forward to watching United Flexible’s continued growth as part of the Smiths platform.”
John Devine, United Flexible’s Chief Executive Officer, commented, “Arlington’s strategic advice, deep aerospace sector knowledge, and expansive industry relationships have been invaluable in building the platform we are today. Arlington invested significant capital into the business throughout our partnership, which has been instrumental to United Flexible’s growth trajectory and allowed us to provide industry leading capabilities and solutions to our customers. We look forward to our combination with Smith’s Flex-Tek division and integrating our expanded engineering capabilities and product offerings for our customers.”
Bilal Noor, a Vice President at Arlington Capital, said, “We are very proud of the significant accomplishments that United Flexible has achieved over the past several years. During our ownership, United Flexible has expanded its product offering into complex bellows and precision metal components, significantly grown its aerospace and defense content, and solidified its position on marquee, high growth next-generation aerospace platforms such as the Pratt & Whitney Geared Turbofan for the A320neo and the F135 engine for the Joint Strike Fighter.”
United Flexible represents another mutual success for Arlington Capital and its management teams. This continues an active year for Arlington Capital, which also made four new platform investments and numerous add-on acquisitions in the last twelve months.
The United Flexible transaction is subject to customary regulatory approvals. Lazard and Lincoln International served as lead financial advisor and financial advisor, respectively, to United Flexible, and Sheppard Mullin provided legal counsel.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-area private equity firm that has managed $2.2 billion of committed capital via four investment funds. Arlington focuses on middle market investment opportunities in growth industries, including: aerospace/defense, government services and technology, healthcare, and business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field. For more information: www.arlingtoncap.com
About Smiths Group plc
Smiths Group is a global technology company listed on the London Stock Exchange (SMIN) and operates a sponsored level one ADR program (SMGZY). A world leader in the practical application of advanced technologies, Smiths Group delivers products and services for the medical technology, security & defense, energy, space & commercial aerospace, construction, transportation and general industrial markets worldwide. Smiths Group employs roughly 22,000 colleagues in over 50 countries.
Flex-Tek, a division of Smiths Group, provides innovative components to heat and move fluid and gases for the aerospace, medical, industrial, construction and domestic appliance markets. Flex-Tek generated annual sales of £354m for the year to 31 July 2018 and employs approximately 2,100 employees across 8 countries (US, Mexico, India, China, Malaysia, Philippines, France and Germany). Flex-Tek’s key customers include Watsco, Boeing, Airbus, Pratt & Whitney, GE, Samsung, Trane and Carrier. For more information visit www.smiths.com
About United Flexible
United Flexible is a global leader in innovative engineered mechanical solutions for fluid conveyance, measurement, actuation and sealing using rigid and flexible tubes, ducts and bellows. Its solutions reduce weight, improve pressure and temperature performance, and minimize the footprint of mission critical systems for its clients across aerospace, defense and industrial end markets. United Flexible has over 700 employees with manufacturing and sales operations in Romeoville, Illinois; Houston, Texas; Knoxville, Tennessee; Elmwood Park, New Jersey; Laconia, New Hampshire; Merthyr Tydfil, Wales, UK; Stockholm, Sweden; and Rotterdam, the Netherlands. For more information: www.unitedflexible.com
Peter Manos and Bilal Noor
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815
SOURCE: Arlington Capital Partners