(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm that specializes in investing in middle market specialty services, consumer, healthcare, and distribution businesses, announced that on June 10, 2019, a group led by its affiliate, Cortec Group Fund VI, L.P. (“Cortec Fund VI”), in partnership with management, acquired Rotating Machinery Services, Inc. (“RMS” or the “Company”). Terms of the transaction were not disclosed.
Headquartered in Bethlehem, Pennsylvania, RMS is a leading provider of specialty aftermarket repair, maintenance and overhaul services for large, highly engineered rotating machinery. The Company’s solutions improve performance and extend the useful life of complex machinery used in customers’ critical industrial processes. RMS serves a diverse global customer base and addresses a wide range of equipment types, including centrifugal compressors, axial air compressors, oil free screw compressors, expanders, and steam turbines. The Company has approximately 200 employees, four primary operating locations, and a staff that travels globally to serve RMS’s base of over 500 customers.
RMS has built a highly differentiated engineering services platform with an outstanding track record of growth under the guidance of Chief Executive Officer John Bartos. “RMS’s reputation reflects its exceptional management team, engineering staff, and dedicated employees. The Company has generated impressive growth by broadening its client base, improving the performance of the equipment it services and expanding geographically ” said Michael Najjar, a Managing Partner at Cortec. Scott Schafler, also a Managing Partner at Cortec, added, “We are excited to support John and the RMS management team as they continue to grow their business and market presence globally through both organic and acquisition initiatives.”
John Bartos commented, “Cortec is an ideal partner for RMS given its track record of successfully investing in high growth specialty services businesses. During the transaction process, Cortec demonstrated that it understood our business model, embraced our culture and brought relevant experience to the table. They did everything they said they would and closed the transaction on schedule and as promised.” John further stated, “Our entire team is enthusiastic about the capabilities, shared values and resources that Cortec brings to RMS.”
The RMS acquisition represents Cortec Fund VI’s seventh platform investment. Piper Jaffray & Co. and Lincoln International LLC served as financial advisors and Cohen & Grigsby, P.C. served as legal advisor to RMS. Paul Hastings LLP served as legal advisor to Cortec. Senior debt to support the acquisition was provided by Twin Brook Capital Partners and Antares Capital.
About RMS
RMS is a leading provider of specialty aftermarket repair, maintenance and overhaul services for large, highly engineered rotating machinery. The Company serves a diverse, global customer base across a wide range of end markets. Founded in 1998, RMS is headquartered in Bethlehem, Pennsylvania and also operates a repair and service center in Houston, Texas. To learn more about RMS, please visit www.rotatingmachinery.com.
About Cortec
Founded in 1984, Cortec invests in high value-added, middle-market consumer, healthcare, and specialty products, service, and distribution businesses in partnership with owners and management teams who want to work with Cortec to drive growth and improve business fundamentals. Additional information about Cortec can be found at www.cortecgroup.com.
