HydroChem Announces Acquisition of Inland Industrial Services

Transaction expands HydroChem's presence in the Gulf Coast and Central U.S. regions and creates opportunity to offer HydroChem's industry-leading proprietary automation technology to more customers, leading to safer and better outcomes

Nov 18, 2013, 07:30 ET from Aquilex Holdings LLC

HOUSTON, Nov. 18, 2013 /PRNewswire/ -- Aquilex Holdings LLC ("HydroChem" or the "Company"), a leading provider of industrial cleaning solutions for the North American petrochemical production, oil refining, power generation, metals and pulp and paper industries, today announced that it has entered into an agreement to acquire Inland Industrial Services Group LLC ("Inland"), an industrial cleaning company with more than a 30-year history, which serves the Gulf Coast and the Central United States.  The combined company will have close to $400 million of revenue and will continue to provide highly effective and cost-efficient industrial cleaning solutions to customers, including daily maintenance as well as turnaround and project services.  The combined company's core services, which include hydroblasting, industrial vacuuming, chemical cleaning, tank cleaning, and paint booth management services, are essential to improving or maintaining the efficiency and operability of customer facilities as well as extending the useful lives of process equipment and facilities.  HydroChem is majority owned by affiliates of New York-based investment firm Centerbridge Partners, L.P. ("Centerbridge"), and Inland is majority owned by affiliates of Birmingham, Michigan-based investment firm Strength Capital Partners, LLC ("Strength").

Mr. Gary Noto, CEO of HydroChem, said, "We are excited to welcome Inland's customers and employees into the HydroChem family.  Our cultures are highly complementary, and together we will continue to deliver industry-leading safety and quality results to our customers.  We remain 100% committed to the accelerated roll-out of HydroChem's proprietary automation technology, which delivers safer, more reliable and higher-quality outcomes.  On behalf of all of Hydrochem's employees, we are eager to get to work in order to merge the operations and build upon Inland's strengths to grow the business."

Mr. Kyle Cruz, Senior Managing Director at Centerbridge, added, "Since our original investment in HydroChem in February 2012, we have supported the Company's investment in equipment and technology.  The Company's management team, led by Gary Noto and assembled under the leadership of our Chairman, Donovan Boyd, has delivered strong performance, and the acquisition of Inland is the culmination of a strategic undertaking aimed at expanding into new end-markets and geographies by leveraging our core competencies.  We have the utmost confidence in our leadership team."

Mr. Mark McCammon, Managing Partner at Strength, remarked, "We thank the Inland leadership team and employees for their service and are thrilled with the transaction.  HydroChem is the right owner for the long-term growth of the combined business, and Inland's specialized capabilities, extensive branch network, diverse customer base and experienced employees are a valuable addition to HydroChem."

HydroChem will finance the acquisition with proceeds from a new credit facility underwritten by General Electric Capital Corporation.  The transaction is expected to be completed prior to 2013 year-end.

Kirkland & Ellis LLP is acting as legal counsel to HydroChem in connection with the transaction.  Houlihan Lokey Capital, Inc. is acting as exclusive financial advisor, and Jaffe Raitt Heuer & Weiss, PC is acting as legal counsel to Inland in connection with the transaction.  King & Spalding LLP is acting as legal counsel to General Electric Capital Corporation in connection with the transaction.

About Aquilex Holdings LLC

Aquilex Holdings LLC, through its wholly-owned subsidiary, Aquilex HydroChem LLC, is a leading provider of industrial cleaning solutions to the petrochemical production, oil refining, and other energy end-markets.  Aquilex HydroChem LLC serves a diverse base of blue-chip customers and has industry-leading safety results, highly innovative automation technologies and specialty services, and best-in-class project supervision personnel and field equipment.  Aquilex Holdings LLC is majority owned by affiliates of Centerbridge Partners, L.P.

About Centerbridge Partners, L.P.

Centerbridge Partners, L.P., headquartered in New York, NY is a private investment firm with approximately $20 billion in capital under management.  The firm focuses on private equity and credit investments and is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.

About Inland Industrial Services Group LLC

Inland Industrial Services Group LLC is an industrial cleaning company with more than a 30-year history, which serves the refining, chemical processing, pulp and paper, alternative fuels, steel, power, automotive, and airport end-markets in the Gulf Coast and Central United States.

About Strength Capital Partners, LLC

Strength Capital Partners is a Birmingham, Michigan-based private equity firm that specializes in industry consolidations and consumer products growth lower middle market companies.  The firm invests in manufacturing, distribution, industrial and financial services, energy and infrastructure related firms, and consumer products companies based throughout the greater Midwest and Central United States.

Will Federking
Aquilex Holdings

SOURCE Aquilex Holdings LLC