KRG Capital Partners has made an investment in Federal Flange Ltd., a Houston-based maker of oilfield hardware. No financial terms were disclosed.
KRG Capital Partners (KRG), a Denver-based private equity firm, announced that it has completed an investment in Federal Flange, Ltd. (Federal), a leading specialty manufacturer of oilfield hardware including flanges and related components and accessories. KRG completed the acquisition of Federal by bridging the entire transaction with KRG’s fund capital and will be conducting the debt financing of the Company post closing. Federal is the third platform company for KRG’s $1.96 billion Fund IV.
“We are very excited to be partnering with the management team at Federal to support the growth of this great company,” noted Chuck Hamilton, Managing Director of KRG Capital. “We believe Federal’s unique model will allow it to outperform the energy cycle and take advantage of the continuous need for rapid-response, high quality, specialty manufacturing services in multiple end markets.”
“KRG’s investment in Federal Flange along with their experience and resources in our industry sector will help us to expand our product offering, support our existing customers and build new relationships,” said Kevin Lyons, Vice President of Federal. “Federal plans to continue to enhance its reputation of superior manufacturing with very short lead times and expects to further expand into fast growing markets such as offshore and into new end markets such as nuclear.”
About Federal Flange:
Federal Flange, headquartered in Houston, Texas, is a leading specialty manufacturer of oilfield hardware including flanges and related components and accessories used globally in a wide range of energy infrastructure applications. Federal sells into both the onshore and offshore oil and gas markets and services the high quality, rapid-response needs of customers in the upstream, midstream and downstream sectors of the market. Federal will continue to be managed by Charles Lyons and Kevin Lyons.
Founded in 1996, KRG is a Denver-based private equity firm with over $4 billion of capital either deployed or available for future investment, which includes approximately $697 million deployed since inception on behalf of equity co-investors. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. Since inception, KRG has invested in 34 platform companies and has completed 97 add-on acquisitions for those platforms. More information on KRG is available online at www.krgcapital.com.