MML Capital Partners has exited its investment in Precision Valve through a sale of the Company to an affiliate of Peak Rock Capital.
Precision is one of the world’s largest producers of valves, actuators and related dispensing solutions. Founded in 1949 by Robert Abplanalp, the inventor of the modern aerosol valve, Precision’s unmatched global footprint serves over 2,000 customers that include multinational consumer packaged goods companies such as SC Johnson, Unilever, RB, P&G, and Beiersdorf. The Company is headquartered in New York with operations in sixteen countries.
MML’s creative approach in providing a multi-step recapitalization of Precision gave the Company the financial stability required to execute on its business plan and affirm its position as a leader in the industry. MML’s transatlantic capabilities, structuring approach, and board control, provided the experience and flexibility to solve the Company’s needs. As part of the recapitalization, Sound Harbor Partners invested in both the senior debt and preferred equity and served as an observer to the board.
Under MML’s ownership senior financing was provided by Comvest Partners, with additional working capital support at the local subsidiaries from numerous banks around the world, including PNC Bank in the US.
Commenting on the transaction, Robert M. Davies, Managing Partner at MML said: “In evaluating this restructuring, we realized from the outset that Precision’s strong legacy and market presence created significant competitive advantages. This proprietary transaction highlights our ability to build enterprise value through investing in complex situations. This realization has provided an excellent return for MML and its partners, and has given Precision the opportunity for continued success.”
Outgoing Chairman John Abplanalp added: “I’m grateful that MML recognized Precision’s strengths when we faced significant challenges following the global recession. Their support has allowed the business my father founded over 65 years ago to continue to be a leader in the industry.”
Lazard Middle Market served as exclusive financial advisor to Precision Valve, with Lloyd Rothenberg, partner at Loeb & Loeb, providing legal counsel to the Company. MML was advised by Chris A. Ferazzi, partner at Winston & Strawn. The founder’s family was advised by William P. Harrington, partner at Bleakley Platt & Schmidt and Steven M. Manket, partner at Davis & Gilbert.