The Sterling Group, L.P. Completes Acquisition Of Hudson Products Corporation

The Sterling Group, L.P. (“Sterling”), a Houston-based private equity firm, recently announced that it has finalized the acquisition of Hudson Products Corporation. The Company, headquartered in Sugarland, Texas, was an affiliate of Madison Capital Partners, a Chicago-based investment firm.

Hudson is one of the world’s leading heat transfer solutions firms providing air-cooled heat exchangers and axial-flow fans to some of the largest processors in the petroleum, natural gas, power generation, petrochemical and chemical industries. Hudson’s manufacturing facilities are located in Beasley, TX, Pombia, Italy, and Monterrey, Mexico.

“As part of Madison over these past four years, Hudson has begun to realize its full potential. Madison’s influence has played a key role in performance improvements and prepared the Company to take the next step. Hudson’s management team and workforce are the finest in the industry as evidenced by the Company’s strong market position and reputation for quality, reliability and service,” said Chris Yunkun, CEO of Hudson. “We are very excited to be joining the Sterling family. Sterling’s familiarity and many years of experience in the markets Hudson serves will be an invaluable asset as we develop our future path together. Hudson looks forward to Sterling’s support as we pursue growth opportunities including new products, expanded distribution, internal improvements and strategic acquisitions.”

“Hudson and its affiliated companies have nearly 70 years of experience in producing high quality axial-flow fans and air-cooled heat exchangers. In recent years, under the leadership of Chris Yunkun, the Company has improved significantly,” said Kevin Garland, a Principal with Sterling. “We look forward to working with Chris and his team to continue to grow and improve Hudson.”

The acquisition was financed with equity primarily from Sterling Group Partners II, L.P., as well as significant reinvestment by an affiliate of Madison and the Hudson management team. Debt financing for the transaction was led by BNP Paribas.

Founded in 1982, The Sterling Group (www.sterling-group.com) is a private equity investment firm that targets controlling interests in basic manufacturing, industrial services and distribution companies. Typical enterprise values of these companies range from $100 million to $500 million. Sterling has sponsored the buyout of over 30 portfolio companies and numerous add-on acquisitions for a total transaction value greater than $7 billion. Currently, Sterling has $600 million of committed capital under management through two funds, including Sterling Group Partners II, L.P. Current portfolio companies include Panolam Industries International, Inc., North American Energy Partners Inc. (NYSE: NOA), Propex Inc., CST Industries, Inc., Roofing Supply Group, LLC, and BTEC Turbines LP.