Centerbridge Partners, L.P., a private investment firm, announced a definitive agreement to acquire IPS Corporation from Cypress Performance Group, LLC. George Moore and Dan St. Martin will continue to serve as executive chairman and CEO of IPS, respectively.
This transaction is expected to close in 2021 and is subject to customary closing conditions and approvals.
IPS provides a comprehensive offering of specialized, highly engineered industrial products including structural and surface adhesives, solvent cements, rough plumbing, and roofing products. The company’s well-recognized brands include Weld-On, Christy’s, Water-Tite, Studor, Scigrip, and others.
IPS sells its products through the wholesale and retail channels to a diverse base of customers across the globe with manufacturing operations in the U.S., the UK, and China.
“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.
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.
“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,” said Conor Tochilin, managing director at Centerbridge.
Several significant shareholders of Cypress, including the Sherman family and Shumway Capital have agreed to continue as shareholders in IPS alongside Centerbridge.
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.
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