FloWorks Completes Strategic Refinancing to Drive Expansion
Deal News | Dec 10, 2024 | Wynnchurch Capital
FloWorks International LLC, a leading distributor of critical flow control products and solutions for MRO-focused applications, has completed a refinancing facilitated by Oak Hill Advisors (OHA). This refinancing aims to restructure existing debt and bolster FloWorks's capacity for future acquisitions, emphasizing growth and expansion in industrial markets. OHA's involvement as the largest holder, with T. Rowe Price as its parent, marks its first financing deal with FloWorks's private equity owner, Wynnchurch Capital. This partnership is strategic for accelerating FloWorks's growth trajectory and enhancing its market standing. Legal expertise during the transaction was provided by Kirkland & Ellis LLP.
Sectors
- Specialty Distribution
- Private Equity
- Investment Banking/Credit Market
Geography
- United States – FloWorks is headquartered in Houston, Texas and Wynnchurch Capital is based in Rosemont, Illinois.
- Canada – Wynnchurch Capital has an affiliate in Canada, indicating a geographical influence there.
- Global – OHA operates globally, with multiple offices around the world, underscoring the multinational context of the deal.
Industry
- Specialty Distribution – FloWorks operates as a specialty distributor, which is central to its business model and the recent refinancing efforts.
- Private Equity – Wynnchurch Capital is a private equity firm managing FloWorks as part of its investment portfolio.
- Investment Banking/Credit Market – Involvement of Oak Hill Advisors in providing a private unitranche facility highlights a focus on financial services and investment banking.
Financials
- $71 billion – The amount of capital OHA manages across credit strategies as of September 30, 2024.
- $9.2 billion – Assets under management by Wynnchurch Capital.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| FloWorks International LLC | Target Company | Company | A leading specialty distributor of flow control products, focused on tailored technical solutions for MRO applications. |
| Wynnchurch Capital | Private Equity Owner | Company | A middle-market private equity firm managing FloWorks in its investment portfolio. |
| Oak Hill Advisors (OHA) | Credit Provider | Company | Served as Administrative Agent and Lead Left Arranger for the refinancing facility. |
| T. Rowe Price Group, Inc. | Parent Company | Company | Parent company of OHA, involved in the private markets platform. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided financing counsel to FloWorks. |
| Greg Gleason | Managing Partner at Wynnchurch | Person | Expressed partnership enthusiasm with OHA for FloWorks's financing. |
| Steve Yan | Head of Debt Capital Markets at Wynnchurch | Person | Highlighted the financial relationship initiated with OHA. |
| Eric Muller | Partner and Portfolio Manager at OHA | Person | Noted the strategic interest and growth potential of FloWorks. |