United Flexible Inc, which is backed by Arlington Capital Partners, has agreed to buy Kreisler Manufacturing Corp for $18 per share. The deal is expected to be completed in the second quarter of this year. Based in Elmwood Park, New Jersey, Kreisler is a maker of precision metal components and assemblies for commercial and military aircraft engines as well as industrial gas turbines.
WASHINGTON–(BUSINESS WIRE)–United Flexible, Inc. (“United Flexible”), a portfolio company of Arlington Capital Partners announced today that it, through its wholly-owned subsidiary, has entered into a definitive merger agreement, dated May 27, 2016, to acquire Kreisler Manufacturing Corporation (“Kreisler” or the “Company”) (OTC: KRSL) for $18.00 per share. Headquartered in Elmwood Park, NJ, Kreisler is a best-in-class manufacturer of precision metal components and assemblies for use in commercial and military aircraft engines as well as industrial gas turbines. The agreement to acquire Kreisler will further United Flexible’s strategy of becoming the preeminent designer and manufacturer of high pressure and high temperature gas and fluid conduits into mission critical systems for OEMs. The combined company will have approximately 700 employees.
John Devine, CEO of United Flexible noted, “With the addition of Kreisler’s deep customer relationships and highly developed engineering capabilities, United Flexible will be uniquely positioned to better serve the highly attractive aero engine manufacturing community. As one of the few established fixed tube and complex conduit suppliers to commercial and military aircraft engine and IGT OEMs, Kreisler complements United Flexible’s product line and uniquely supports United Flexible’s vast growth potential as a whole.”
Michael Stern, Kreisler’s President and Chief Executive Officer, commented, “We are pleased to be joining with United Flexible, an organization that shares our passion for providing customers with highly engineered solutions to critical performance challenges. United has both the global reach and the diversified industry exposure that we believe will provide Kreisler with the ideal platform to leverage our half century of aerospace experience for further growth. As such, this combination will provide our employees with personal growth opportunities, our customers with a wider breadth of products and a deeper pool of resources. We are excited to begin the next chapter in Kreisler’s evolution, as this transaction will provide us with additional resources to develop new products and enter new markets that will only serve to strengthen the Kreisler brand.”
Peter Manos, a Managing Partner at Arlington Capital Partners commented, “We are excited about how well Kreisler fits our acquisition strategy of building one of the leading suppliers of high pressure and extreme temperature conduit systems. The addition of Kreisler’s highly engineered precision metal fixed tube manufacturing capability uniquely augments United Flexible’s ability to deliver differentiated and innovative solutions to its customers, and we look forward to continuing to support United Flexible’s organic and M&A expansion.”
Jesse Liu, a Principal at Arlington Capital Partners said, “In combination with Kreisler, United is positioned as one of the few Tier 1 suppliers offering both fixed and flexible engineered assemblies for use in high pressure or extreme temperature applications. We look forward to continuing to support United Flexible as it executes on its strategy of adding, and growing alongside, OEM customers that have a large and continuing demand for United Flexible’s rapidly expanding product capabilities.”
The transaction is expected to close in the second quarter of 2016, subject to certain closing conditions. Upon closing, Michael Stern, Kreisler’s President and Chief Executive Officer, will join United Flexible’s senior management team as President of Kreisler.
About United Flexible
Headquartered in Romeoville, Illinois, United Flexible is a global leader in the design, development, manufacture and support of performance critical flexible engineered solutions for the transfer of fluids and gases in extreme environments. The Company is a proactive partner to OEMs and distributors, operating in several attractive end-markets including aerospace/defense, satellite, power generation, general industrial, oil/gas, cooling and transportation. United Flexible Group has manufacturing operations in Romeoville, Illinois; Houston, Texas; Knoxville, Tennessee; Merthyr Tydfil, Wales, UK; Stockholm, Sweden; and Rotterdam, The Netherlands.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-based private equity firm that has managed $1.5 billion of committed capital via three investment funds, focused on middle market investment opportunities in government related growth industries including: aerospace/defense, government services and technology, healthcare, and business services and software. The firm’s combination of operating and private equity experience 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. www.arlingtoncap.com