Harris Williams Advises Hunt Valve Company on its Sale to Fairbanks Morse Defense

Rhea-AI Summary

Harris Williams has successfully advised Hunt Valve Company on its sale to Fairbanks Morse Defense. This strategic acquisition positions Fairbanks Morse to better serve the U.S. Navy, enhancing its capabilities in the defense maritime sector. Hunt Valve specializes in manufacturing critical valves and electromechanical actuators for military applications. The partnership aims to leverage market demand for defense contractors as the U.S. Navy expands its fleet. May River Capital, Hunt Valve's owner, focuses on lower-middle market industrial growth investments.

Positive

• Acquisition strengthens Fairbanks Morse's position in the defense maritime sector.
• Hunt Valve's strong growth trajectory enhances its market presence.
• Strategic alignment with U.S. Navy's fleet modernization initiatives.

Negative

• None.

RICHMOND, Va.--(BUSINESS WIRE)-- Harris Williams, a global investment bank specializing in M&A advisory services, announces it advised Hunt Valve Company (Hunt Valve), a portfolio company of May River Capital, on its sale to Fairbanks Morse Defense (Fairbanks Morse), a portfolio company of Arcline Investment Management (Arcline). Hunt Valve designs and manufactures complex valves and electromechanical actuators that support critical system functions onboard key U.S. Navy platforms. The transaction was led by Chris Rogers, Doug Kinard, Evan Clark, Mike Rohman and Anya Bahros of the Harris Williams Aerospace, Defense & Government Services (ADG) Group and Giles Tucker of the firm’s Industrials Group.

“In partnership with May River Capital, the Hunt Valve team has achieved impressive growth and solidified the company’s position as a leading flow control solutions provider to U.S. Navy ships and submarines,” said Doug Kinard, a managing director at Harris Williams. “Partnering with Fairbanks Morse, the combined platform is well positioned to serve the U.S. Navy for decades to come as it continues to expand and maintain its fleet.”

“Hunt Valve represents another marquee transaction for Harris Williams in the defense maritime sector, where we continue to see strong investor interest for platforms of scale in what is generally a fragmented supply base,” added Chris Rogers, a managing director at Harris Williams. “Demand tailwinds within this market are very positive, and suppliers that can participate in the U.S. Navy’s fleet expansion and modernization are well positioned for long-term growth.”

Hunt Valve brings decades of fluid power engineering innovations and solutions to a wide range of military and industrial customers. It specializes in severe duty valves and complementary engineered components and system solutions for applications that include primary metals, energy, process and U.S. Navy nuclear-powered vessels, including all submarines and carriers in operation as well as the Virginia Class, Columbia Class and Ford Class.

Headquartered in Chicago, May River Capital is a private equity firm focused on investing in lower-middle market industrial growth companies, including precision manufacturing, engineered products and instrumentation, specialized industrial services, and value-added industrial distribution businesses. The firm is investing out of its second institutional fund of approximately $300 million, which was closed in December 2019.

Fairbanks Morse develops and manufactures heavy-duty, medium-speed reciprocating engines that are used primarily in marine and power generation applications. The company has been the original equipment manufacturer of its engines for more than 120 years and has a large installed base for which it supplies aftermarket parts and services. Fairbanks Morse is the principal supplier of diesel engines to the U.S. Navy, U.S. Coast Guard and Canadian Coast Guard, with all manufacturing conducted in the company's U.S.-based facility in Beloit, Wisconsin, and parts and services delivered through its network of five service centers strategically located in the U.S. and Canada.

Arcline is a growth-oriented private equity firm that seeks to invest in thriving middle market businesses in high value industries. Arcline’s differentiated investment strategy combines deep business model expertise, proactive thematic research, an unrelenting focus on the upside and a collaborative, management-first approach to value creation. The firm's primary sectors of interest include defense, aerospace, critical infrastructure services, industrial and medical technology, life sciences, and specialty materials. Launched in 2019, Arcline currently has $4.3 billion in cumulative capital commitments.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams ADG Group offers strategic advice to a global base of leading aerospace, defense and government services clients. For more information on the ADG Group and other recent transactions, visit the ADG Group’s section of the Harris Williams website.

The Harris Williams Industrials Group has experience across a variety of sectors, including advanced manufacturing; building products; chemicals and specialty materials; industrial technology; and packaging. For more information on the firm’s Industrials Group and other recent transactions, visit the Industrials Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 8th Floor, 20 Farringdon Street, London EC4A 4AB, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210914005824/en/

Julia Moore

media@harriswilliams.com

Source: Harris Williams

FAQ

What is the significance of Harris Williams advising on Hunt Valve's sale?

Harris Williams' advisory role underscores its expertise in the defense sector and highlights a significant M&A transaction, enhancing Fairbanks Morse's capabilities.

How does the acquisition of Hunt Valve affect Fairbanks Morse's business?

The acquisition improves Fairbanks Morse's ability to supply the U.S. Navy, positioning it favorably for future defense contracts and market opportunities.

What role does May River Capital play in the sale of Hunt Valve?

May River Capital, as Hunt Valve's owner, facilitated the sale to Fairbanks Morse, indicating its commitment to driving growth in the industrial sector.

When was the sale of Hunt Valve to Fairbanks Morse announced?

The sale was announced in a press release dated September 14, 2021.

What does Hunt Valve specialize in?

Hunt Valve specializes in the design and manufacturing of valves and electromechanical actuators for military and industrial applications.