The Watermill Group has sold Global Tubes to AMETEK for about $200 million. Global Tubes is a maker of highly specialized precision metal tubing.
Lexington, MA — May 8, 2015 — The Watermill Group, a strategy-driven private investment firm, today announced the sale of Global Tubes to AMETEK, Inc. (NYSE: AME), a leading global manufacturer of electronic instruments and electro-mechanical devices, for approximately $200 million. With annual sales of approximately $120 million, Global Tubes is a leading manufacturer of highly specialized precision metal tubing from a wide variety of metals and alloys including stainless steel, nickel, zirconium, and titanium. Its products are used in highly engineered applications serving the aerospace, energy, power generation, and medical markets.
At the time Watermill acquired the businesses in 2012, Fine Tubes Ltd. and Superior Tube Company, Inc. were operated independently by a family holding company. Since uniting the two companies under the Global Tubes name, Watermill and management overhauled both production facilities in order to streamline manufacturing operations, increased production capacity, upgraded equipment, and decreased product lead times to provide enhanced value to customers. As part of a Watermill-led strategic planning process, the firm also re-focused on the needs of key customer and market segments, with a corresponding strengthening of capabilities and engineering resources. The refreshed strategy, operations excellence initiatives, and key management hires under Watermill ownership built a strong foundation for accelerated sales growth.
“We are very pleased with the Global Tubes transformation. In just under three years, the business has developed from two disparate entities that were challenged to keep up with production demands, into an integrated global tubing platform that is adept at anticipating market needs and delivering mission-critical products for its customers. This reinvention is reflected in the fact that revenue has improved by 16% and EBITDA has more than doubled,” stated Steven E. Karol, Managing Partner and Founder of The Watermill Group. “We believe Global Tubes will be a strong fit for AMETEK.”
“With Watermill, Superior Tube and Fine Tubes have made significant advancements in service levels and built a strong foundation for accelerated global growth,” stated David Robinson, Chairman of Global Tubes and a Watermill advisor. “Utilizing AMETEK’s four key strategies, Global Tubes will bring its customers an even more enhanced specialty metals offering.”
Global Tubes joins AMETEK as part of its Electromechanical Group (EMG) – a differentiated supplier of electrical interconnects, precision motion control solutions, specialty metals, thermal management systems, and floor care and specialty motors.
Goodwin Procter LLP provided legal counsel on the sale of Global Tubes to AMETEK.
About The Watermill Group
The Watermill Group is a strategy-driven private investment firm that revitalizes companies to reach their full potential. For more than three decades, Watermill has been acquiring, operating and improving companies. Watermill looks for businesses in which it can apply a unique combination of strategic insight and management expertise to re-imagine their future and drive growth.
AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with annual sales of $4.0 billion. AMETEK’s Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions, Global & Market Expansion and New Products. AMETEK’s objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. The common stock of AMETEK is a component of the S&P 500 Index.
About Fine Tubes, Ltd.
Fine Tubes Ltd., located in Plymouth, United Kingdom, is a leading European manufacturer of high-precision metal tubing in stainless steel, nickel, titanium and zirconium alloys. The company has a fully integrated facility for the manufacture, research and development of high-quality metal tubes in seamless, welded and welded-and-drawn forms. Fine Tubes’ tubing solutions are designed for use in environments that endure extreme temperatures, pressure, dynamic stress and corrosion, including critical-tolerance applications in the aerospace, medical and energy industries. Incorporated in 1943, Fine Tubes’ long history of success stems from its proven ability to consistently develop and manufacture complex, high-performance engineered tubing that meets the stringent quality requirements of the world’s most demanding applications.
About Superior Tube Company, Inc.
Superior Tube Company is a leading North American manufacturer of high-precision, small diameter metal tubing used primarily in highly engineered applications in the nuclear, aerospace, medical and durable goods markets. Superior Tube manufactures tubing to tight tolerances and to custom specifications using stainless steel, nickel alloys, high-temperature alloys and reactive metals. The company was founded in 1934 to produce high-quality, small diameter steel tubing for the aircraft industry.