Sterling Group buys Filter Biz
The Houston-based private equity firm purchased Velcon Filters, LLC, a jet fuel filter equipment maker.
May 1, 2009
The Sterling Group, a Houston-based private equity firm acquired Velcon Filters, LLC, a filtration systems manufacturer. Financial terms of the transaction were not disclosed.
Sterling financed the acquisition using equity from Sterling Group Partners II, a $470 million fund that Sterling closed in May 2005, with additional debt financing from BNP Paribas and Amegy Bank of Texas.
Velcon’s equipment filters and removes water from jet fuel. The company, which was founded in 1953 by Lu Taylor provides services for airports, contracted fuel providers, militaries, pipeline operators. The business has been run by his son, David Taylor since 1991. David Taylor will remain chief executive of the Colorado Springs, Colorado-based manufacturer.
In July 2008, Sterling sold Hudson Products Holdings to The Riverstone/Carlyle Global Energy and Power Funds, a joint venture between The Carlyle Group and Riverstone Holdings. The transaction was Sterling’s first exit of a portfolio company in the equity firm’s second fund, Sterling Group Partners II.
The Sterling Group was founded by Gordon Cain and Frank Hevrdejs in 1982. The firm makes majority investments in manufacturing, industrial and distribution companies.
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