CASE STUDIES
Aquilex Corporation
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Business
Aquilex Corporation (“Aquilex”) was a leading global provider of critical maintenance, repair and industrial cleaning solutions to the energy industry. Aquilex’s customer base included leading global operators in the nuclear, fossil power, refinery/ petrochemical, pulp and paper and other process industries.
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Situation
Harvest believed it had a competitive advantage in the Aquilex sales process because it had previously conducted due diligence on the company. In addition, Harvest had familiarity with the industrial services industry segment through a former portfolio company. This knowledge generated additional credibility for Harvest with Aquilex’s executive team and the sellers. Moreover, Harvest embraced management’s vision to build a diversified service company through acquisition.
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Harvest Partners Investment
In January 2007, Harvest purchased Aquilex with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction.
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Investment Thesis
- Market leading position
- Compelling value proposition
- Highly favorable industry trends
- Strong, experienced management team
- Acquisition potential
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Value Creation
- Capitalized on favorable industry dynamics
- Acquired complementary businesses
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Outcome
- Sold Aquilex to Ontario Teachers’ Pension Plan in December 2008
