Arcline to buy Fairbanks Morse for $450 mln

Arcline Investment Management has agreed to acquire Fairbanks Morse, a maker of reciprocating engines.

Arcline Investment Management has agreed to acquire Fairbanks Morse, a maker of reciprocating engines. The purchase price is $450 million. Harris Williams and Moelis & Company LLC provided financial advice to Arcline on the deal.

PRESS RELEASE

Arcline Investment Management (“Arcline”), a growth oriented private equity firm with $1.5 billion of capital under management, today announced that it has signed a definitive agreement to acquire Fairbanks Morse (“the Company”), an EnPro Industries company (NYSE: NPO), for $450 million.

Fairbanks Morse develops and manufactures heavy-duty, medium-speed reciprocating engines under the Fairbanks Morse® and ALCO® brand names, which are used primarily in marine and power generation applications. The Company has been the original equipment manufacturer of its engines for more than 120 years and has a large installed base for which it supplies aftermarket parts and services. Fairbanks Morse is the principal supplier of diesel engines to the U.S. Navy, U.S. Coast Guard and Canadian Coast Guard, with all manufacturing conducted in the Company’s U.S.-based facility in Beloit, Wisconsin, and parts and services delivered through its network of five service centers strategically located in the U.S. and Canada.

Arcline commented, “We are proud to invest in a company that is critical to our national interests. Our intent is to build upon and grow Fairbanks Morse’s 120+ year reputation of dependability, reliability and innovation in serving its long-standing customers.”
Harris Williams and Moelis & Company LLC served as financial advisors to Arcline in connection with the acquisition.

About Arcline Investment Management LP
Arcline is a private equity firm with $1.5 billion in capital, investing in niche, market-leading companies that we are passionate about growing. We approach investments from multiple perspectives, but share a single vision – to identify and unlock the breakout potential in our companies. While we are deliberately sector generalists, some of our primary interest areas include Industrials, Technology, Life Sciences, and Specialty Chemicals.

About Fairbanks Morse
For over 125 years, Fairbanks Morse has been powering the world forward with innovative distributed power generation solutions that deliver optimal performance in a wide range of applications from base load and standby in municipal, nuclear, and institutional facilities to locomotive engines, and naval and commercial-class ship propulsion and shipboard power. Reliable and dependable, its flagship Opposed Piston (OP) engine technology has been trusted for decades and has totaled over 100 million operating hours — many units with over 40 years of service. Learn more about how Fairbanks Morse is committed to delivering power where it is needed most in the world by visiting www.fairbanksmorse.com.

About EnPro Industries, Inc.
EnPro Industries, Inc. is a leader in sealing products, metal polymer and filament wound bearings, components and service for reciprocating compressors, diesel and dual-fuel engines and other engineered products for use in critical applications by industries worldwide. For more information about EnPro, visit www.enproindustries.com.