(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm focused on investing in specialty business-to-business, consumer, and healthcare products and services companies, is pleased to announce that its affiliate, Cortec Group Fund VI, L.P., has sold its majority investment in RMS Parent Holding, LP d/b/a Rotating Machinery Services (“RMS” or the “Company”). Terms of the transaction were not disclosed.
RMS is a leading provider of aftermarket services (repairs, maintenance, and overhauls) and parts for large, highly engineered rotating equipment used in refineries, chemical / petrochemical plants, and oil and gas facilities, among other end markets. RMS’s solutions improve performance and extend the useful life of complex machinery employed in critical industrial processes. The Company serves a diverse, global customer base and addresses a wide range of equipment types, including centrifugal, axial, reciprocating, and oil free screw compressors; hot gas expanders; and steam turbines.
Since Cortec acquired control of RMS in June 2019, the Company has grown rapidly, both organically and via add-on acquisitions. RMS made significant investments in its workforce, increasing employee headcount from approximately 190 to 440; meaningfully expanded its facility footprint; and built-out its domestic and international direct salesforce. The Company also completed seven highly strategic acquisitions and partnerships which significantly expanded its breadth of capabilities, as well as served equipment types, customers, and end markets.
Michael Najjar, a Managing Partner at Cortec, stated, “During our partnership, RMS more than doubled in size and further cemented itself as the leading provider of aftermarket services for complex rotating equipment. We enjoyed our close partnership with the RMS leadership team and share their excitement for the future.” Scott Schafler, a Cortec Founding Partner, added, “RMS has assembled the industry’s premier group of rotating equipment engineers and subject matter experts who provide unmatched project outcomes and customer service. We are thrilled with the result of this transaction for RMS’ management and shareholders and are confident RMS is well-positioned to build on its strong track record of growth.”
RMS CEO John Bartos, who will continue to lead the business, remarked, “Our partnership with Cortec has meaningfully exceeded every expectation. From day one, they have been incredibly collaborative and served as a trusted sounding board as well as an invaluable resource for myself and my team, providing both value-added operational and business insights. We have enjoyed working with the Cortec team and are excited to continue RMS’s growth trajectory.”
RMS was co-advised in the transaction by Piper Sandler & Co. and Houlihan Lokey Capital, Inc., with Paul Hastings LLP serving as legal counsel.
About Cortec Group
Founded in 1984, Cortec focuses on investing in and helping management build high-margin entrepreneur- and family-owned middle-market products and services companies across various end markets. Cortec works closely with owners and management teams who want to leverage its capabilities and resources to drive growth and improve business processes while preserving each company’s unique culture. Cortec is currently investing Cortec Group Fund VIII, L.P. and has approximately $6.4 billion in assets under management. More information about Cortec can be found at www.cortecgroup.com.
About Rotating Machinery Services
Headquartered in Bethlehem, PA, RMS is a leading provider of aftermarket services (repairs, maintenance, and overhauls) and parts for large, highly engineered rotating equipment. RMS’s solutions improve performance and extend the useful life of complex machinery used in customers’ critical industrial processes. More information about RMS can be found at www.rotatingmachinery.com.
