Sun Capital’s latest home run: Critical Flow sale

Sun Capital Partners is expected to make more than 18x its money with the sale of Critical Flow Solutions  after a less than two-year hold, a source said.

Circor International said Oct. 13 that it had agreed to buy Critical Flow for $210 million. Critical Flow is the Salt Lake City provider of products and services to the petroleum-refining industry. The company has about 200 employees.

Sun Capital formed Critical Flow in May 2015 when it bought the downstream oil and gas business of Curtiss-Wright Corp. The deal included three units: DeltaValve LLC, TapcoEnpro International and Groquip. 

Terms weren’t disclosed. Curtiss-Wright, in an SEC filing, said it divested its downstream oil and gas business for $19 million, net of transaction costs, in May 2015. It’s unclear whether Critical Flow paid a dividend during Sun’s ownership.

Sun Capital used its sixth fund, which collected $2.1 billion in 2014, to invest in Critical Flow.

The Boca Raton, Florida, private equity firm has produced its fair share of home runs. Sun Capital sold Emerald Performance Materials in 2014, making 9x its investment, Reuters reported. The firm also exited Cornerstone Research & Development that year, making nearly 10x its money. Sun sold Raybestos Powertrain to Monomoy Capital in 2012; the buyout shop made a 110x return on its investment, Buyouts reported.

BlackArch Partners and Simmons & Co International, a unit of Piper Jaffray, provided financial advice to Sun Capital.

Circor and Critical Flow couldn’t be reached for comment.

Action Item: Contact Sun Capital: +1 561-394-0550.

Chicago Cubs left fielder Junior Lake on May 16, 2014, runs the bases after hitting a home run against the Milwaukee Brewers during the third inning at Wrigley Field. Photo courtesy David Banks-USA Today Sports/Reuters