September 12, 2019

Industrial Valve Represents Initial Platform Investment Within Broader KCM Strategy Focused on Critical-to-Process Rotating Equipment Service Companies

Chicago-based private investment firm KCM Capital Partners LLC (“KCM”), an investor in lower middle-market business services, value-added distribution and specialty industrial companies, announced today that it has completed the acquisition of Industrial Valve Sales & Services, LLC (“IVS” or the “Company”) headquartered in Mobile, Alabama.  The transaction was completed in partnership with Company management, PNC Mezzanine Capital based in Pittsburgh, Pennsylvania and Five Points Capital located in Winston-Salem, North Carolina.  Terms of the transaction were not disclosed. 

Founded in 1975, IVS is a leading provider of specialty valve services and products, including inspection and repair services, new valves and parts, and refurbished valves to hundreds of blue-chip customers across the Southeastern United States.  IVS’ rich history of safe and high-quality operations has established the Company as a well-respected provider of mission-critical support for its clients’ industrial valve needs, ensuring safe and consistent uptime within customer facilities throughout various industrial end markets. 

Former Company owners, Donald Williams and James Harrell, Jr., built the business over nearly 45 years before deciding to sell to KCM in order to position the Company for enhanced growth.  Consistent with KCM’s investment philosophy – Keeping Continuity Matters – IVS will continue operations under its current name, and IVS’ President Bart Middleton, supported by a deep senior management team, will continue to oversee day-to-day operations of the business.    

“The former owners of IVS and the senior leadership team have built an incredibly strong foundation through prioritized customer service, extensive valve service and repair capabilities and an unwavering commitment to safety,” said Derek Ferguson, Partner at KCM.  “KCM aims to build upon the Company’s rich heritage by providing both strategic and financial resources to IVS management and employees in order to help accelerate growth and increase the Company’s already diverse service and product offering to its customer base.  We are highly appreciative of the strategic capital support provided by our partners PNC Mezzanine Capital and Five Points Capital and look forward to executing this strategy together with them.” 

Jon Gilbert, Partner at KCM, added, “With a well-regarded reputation for quality, safety and service, IVS represents an ideal first investment for our industrial rotating equipment services platform.  Its core leadership team and strong market position will enable KCM to not only expand upon IVS’ existing capabilities, but also to implement best practices from the Company across future platform operations.” 

KCM Partner Emmett Mosley said, “We are thrilled to welcome IVS to the KCM family, as the Company shares our passions for a customer-centric focus and a culture founded upon continued innovation and excellence. IVS is strongly positioned to accelerate its growth as an industry leader in critical-to-process industrial valve service and solutions.  To that end, we are eager to continue growing the IVS business while seeking additional industrial leaders to join our broader platform.”

Hancock Capital Management provided senior debt financing in support of the transaction, while Katten Muchin Rosenman LLP served as legal counsel to KCM.

About IVS:

Headquartered in Mobile, Alabama, IVS is a leading provider of specialty valve services and products to hundreds of blue-chip customers across the Southeastern U.S.  Operating for nearly 45 years, the Company provides inspection and repair services, as well as the distribution and assembly of new and refurbished valves and parts in support of its clients’ industrial facility needs. For more information, please visit www.indvalve.com

About KCM Capital Partners:

KCM Capital Partners is a Chicago-based private investment firm focused on investing in lower middle-market business services, value-added distribution and specialty industrial businesses throughout the U.S. Founded in 2017, KCM follows a simple philosophy – Keeping Continuity Matters – which is emblematic of our belief in the importance of a healthy culture and collaborative, trustworthy partnerships. With this strategy in mind, we look to support founders and management teams of niche market leaders with creative solutions and strategic guidance to effect transformational growth. For more information, please visit www.kcmcap.com.

Derek Ferguson
(312) 577-8506