COMPTON, Calif., Aug. 11, 2021 /PRNewswire/ -- IPS Corporation ("IPS" or the "Company") today announced a definitive agreement for funds advised by Centerbridge Partners, L.P. ("Centerbridge"), a leading private investment firm, to acquire the Company from Cypress Performance Group, LLC ("Cypress"). George Moore and Dan St. Martin will continue to serve as Executive Chairman and CEO of IPS, respectively.
IPS provides a comprehensive offering of specialized, highly engineered industrial products including solvent cements, rough plumbing and roofing products, and structural and surface adhesives. The Company's well-recognized brands include Weld-On®, Christy's™, Water-Tite®, Studor®, Scigrip®, and others. The Company sells its products through the wholesale and retail channels to a diverse base of customers across the globe with manufacturing operations in the United States, the United Kingdom, and China.
IPS has been owned since 2017 by Cypress, a diversified industrial holding company established by former Danaher Corporation CEO George Sherman. Under the leadership of George Sherman, George Moore, and Dan St. Martin, IPS has deployed a version of the Danaher Business System, a holistic operating model through which strategy, operations, and financial performance are managed. Several significant shareholders of Cypress including the Sherman family and Shumway Capital have agreed to continue as shareholders in IPS alongside Centerbridge.
"George Sherman and George Moore are highly accomplished industrial leaders, and they have continued their impressive track record of value creation at IPS. The Company is a world-class manufacturer with leadership positions across its key product categories and stands to benefit from strong market tailwinds in its attractive end markets," said Steven Silver, Global Co-Head of Private Equity and Senior Managing Director at Centerbridge.
"Over the years, we have partnered with outstanding executives who have used the Danaher Business System to drive outperformance. We believe George Moore, Dan St. Martin, and the IPS team are similarly poised to drive excellent performance through use of the business system and are excited to support the team during the next stage of the Company's growth," added Conor Tochilin, Managing Director at Centerbridge.
"We are passionate about serving our customers and investing in our associates through the application of our business system and our deep culture of continuous improvement. I am truly excited to join with Centerbridge in our next chapter to continue our outperformance and strong positive momentum," said Dan St. Martin, CEO of IPS.
This transaction is expected to close in 2021 and is subject to customary closing conditions and approvals. Financial terms of the transaction were not disclosed.
BofA Securities and Credit Suisse served as financial advisors to IPS on the transaction. Morgan, Lewis & Bockius LLP served as legal counsel to IPS and Cypress. Jefferies served as lead financial advisor to Centerbridge. Jefferies and Credit Suisse provided financing for the transaction. Latham & Watkins LLP served as legal counsel to Centerbridge.
About IPS Corporation
Established in 1954 as the original inventor of solvent cement for PVC pipe applications, IPS Corporation is a trusted manufacturer of rough plumbing and roofing supplies for the construction industry, as well as structural adhesives and solvent cements for a broad range of construction, industrial, and manufacturing applications. Our leading brands include WELD-ON®, CHRISTY'S™, WATER-TITE®, TEST-TITE®, GUY GRAY™, TRUEBRO®, STUDOR®, AB&A®, SCIGRIP®, INTEGRA®, and UNIKA®. Headquartered in California, IPS Corporation has operations throughout the United States, Europe, and Asia. Learn more at www.ipscorp.com.
About Centerbridge Partners
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — private equity, private credit and real estate — in an effort to develop the most attractive opportunities for its investors. The Firm was founded in 2005 and as of July 1, 2021 has approximately $31 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit www.centerbridge.com.
About Cypress Performance Group
Cypress Performance Group, LLC is a holding company founded by George Sherman focused on value-added manufacturing or industrial service businesses in industries with consolidation opportunities. Cypress helps companies implement their strategic plan by using its business system to focus on growth and operational efficiency while developing industry leading practices to improve customer experience and delivering shareholder value.
SOURCE IPS Corporation