Irving Place to make more than 3x its money on Victor Technologies sale

Irving Place Capital is exiting its investment in Victor Technologies after more than three years.

The New York PE firm said yesterday it agreed to sell Victor Technologies to Colfax Corp. for $947 million cash, including debt. Victor Technologies makes and markets metal cutting and welding equipment products. In November, the company reported that third quarter net income rose nearly 94 percent to $10.3 million for the time period ended Sept. 30. Adjusted EBITDA was $24.5 million, according to a statement.

St. Louis-based Victor Technologies is the former Thermadyne Holdings Corp., which Irving Place acquired in 2010 for about $422 million. Irving Place committed to invest up to $197 million equity in the deal, according to SEC filings.

Irving Place is expected to make more than 3x its investment with the sale of Victor Technologies, a source said. The deal is also generating an IRR north of 50 percent, the person said.

The Victor Technologies/Thermadyne investment came from Irving Place’s third fund, which collected $2.7 billion in 2006.

Last year, LPs granted Irving Place a two-year extension until Feb. 2015 to invest Fund III. It’s unclear when Irving Place will kick off marketing for its fourth pool. Before it begins fundraising, Irving Place is trying to accumulate a few strong exits from Fund III to gain momentum, placement sources have told peHUB. In addition to Victor Technologies, the PE firm also exited Chesapeake last year; that was also a Fund III deal.

Performance data for Irving Place Capital Partners III LP was not immediately available. A spokesperson for Irving Place declined to comment on the firm’s fundraising plans.

RBC Capital Markets and Blackstone Advisory Partners provided financial advice to Victor Technologies.

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