News

Jun 07, 2023

Distributor Singer Industrial gets cash infusion from private equity owner

DALLAS—To say that Singer Industrial had a busy spring would be a bit of an understatement. The North American distributor of hose, rubber, belt, fluid power and automation products and services,

DALLAS—To say that Singer Industrial had a busy spring would be a bit of an understatement.

The North American distributor of hose, rubber, belt, fluid power and automation products and services, changed its private equity ownership. It is a move that further supports Singer's growth and expansion program, which includes an ongoing merger and acquisition strategy.

The Dallas-based firm also acquired Uni-Draulik Inc., which will operate within its Fluid Power Division. The deal increases Singer Industrial's North American footprint to about 85 locations with more than 1,000 employees.

And finally, the distribution player rebranded itself from SBP Holdings to Singer Industrial, a move the company said reflects the group's heritage and better highlights its focus on industrial businesses and applications of all types.

The biggest of the moves is the April 17 announcement by AEA Investors Small Business Private Equity that it had completed a continuation fund with $384 million in capital commitments. AEA said the continuation fund then acquired a majority interest in Singer Industrial from AEA Investors Small Business Fund II L.P. (SBF II) and its other owners.

The continuation fund is Anchored by AEA Small Business Equity Funds, Apollo S3 and LGT Capital Partners-managed funds, and is supported by other investors.

"The investment from the continuation fund marks a strategic move to fuel Singer Industrial's sustained growth and expansion as a leading industrial rubber and fluid power platform, while accelerating its robust M&A strategy," the private equity firm said in a news release. "With an extensive national presence backed by strong local relationships, Singer Industrial caters to a diverse range of customers across the industrial maintenance, repair and overhaul industry."

Since SBF II first invested in Singer in 2011, the distribution firm has completed nearly 30 acquisitions. During that time, AEA said Singer boosted its product and service offerings, adding private label capabilities, while continuing to invest in business infrastructure. It also divested its Bishop Lifting Products segment to position itself as a market leader in the industrial rubber and fluid power business.

"Singer Industrial is a clear market leader in the fragmented industrial maintenance, repair and overhaul distribution market," said Alan Wilkinson, AEA's co-head of Small Business Private Equity. "We are excited to continue to support the talented Singer Industrial team in their multifaceted acquisition and organic growth initiatives, including strategic investments in greenfields, digital lead generation and enhanced technology infrastructure. We are confident in the company's ability to deliver against its long-term growth potential."

Uni-Draulik was established in 2003 and is owned and operated by Remi Cote. It operates from two locations in Quebec—Quebec City and Val-d'Or, Singer said in a statement.

The company is a leader, Singer said, in custom hydraulic system design, fabrication and repair, as well as the assembly of custom hose assemblies. It serves markets such as construction, municipality and general industrial supply.

Remi Cote will continue to manage the operation, with plans to expand its enterprise, through both organic growth and cooperation with other Singer Industrial companies.

"We have been proud to serve Canada for decades," Cote said. "We are extremely confident that this transition will benefit our employees as well as our customers by providing the same excellent sales and service while providing a stronger network and expanded offerings."

Singer Industrial CEO Craig Osborne said the partnership will be mutually beneficial to help customers with their fluid power and rubber hose products and services.

Scott Wojciak, president of Singer's Fluid Power Division, said Uni-Draulik has built a successful business by providing exceptional service to a diversified customer base.

"We are very excited to have them join our team and look forward to expanding the sales of their custom engineered machines across the Singer Industrial footprint," he said.

Aside from the big deals, the distributor of industrial rubber goods and fluid power products in March rebranded to Singer Industrial from SBP Holdings.

"The Singer Industrial brand reflects the group's heritage and highlights its focus on industrial businesses and applications of all types," the firm said in a news release.

Singer Industrial began in 1999 as Singer Equities, before evolving into SBP Holdings. During that period, the organization continued to expand while keeping a focus on coordinated autonomy, meaning the operating units continue to operate locally but share best practices.

"The Singer Industrial brand will carry on that focus by seeking partnerships with well-managed, profitable businesses where significant operating changes are not necessary, and encouraging current management to remain," the firm said.

As part of the brand update, the firm created a new website at singerindustrial.com, along with new social media accounts and other marketing collateral.

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