Partnership will accelerate growth of leading national platform to a diverse set of industrial markets
CHINO, Calif., -- September 7, 2023 -- Harrington Process (“Harrington”, or the “Company”), a leading specialty distributor of industrial flow control process solutions, today announced that it has entered into a definitive agreement to be acquired by Bain Capital Private Equity (“Bain Capital”). Harrington will continue to operate as a standalone company and be led by its current management team. Financial terms of the private transaction with funds affiliated with Nautic Partners (together with certain of their affiliates, “Nautic”), which have owned Harrington since 2020, were not disclosed.
Founded in 1959 and headquartered in Chino, California, Harrington is a leading distributor of piping and other engineered fluid process products for corrosive and high-purity applications. The Company specializes in a variety of highly technical applications and products across categories including filtration, pumps, tanks, valves, and instrumentation. With over 60 locations across the United States, Harrington provides solutions to vendors in a wide array of critical industries, including semiconductors, water and wastewater management, chemicals, manufacturing, life sciences, and food and beverage processing.
“Our vendors and customers have long recognized Harrington as a leading supply chain partner and technical expert in the specialty distribution sector,” said Dave Abercrombie, Chief Executive Officer of Harrington. “As our end markets are benefitting from key macroeconomic trends, we are excited to partner with Bain Capital to accelerate our growth as we continue to support critical industrial sectors across the country.”
“We have built an impressive team of specialists that can quickly help to deliver complex and mission-critical fluid processing solutions for many of the nation’s leading industrial and technology firms,” said Bob Graham, Chief Operating Officer at Harrington. “Bain Capital’s experience partnering with and providing valued resources to industrial and specialty distribution companies will be very important as we continue to scale the business and serve the needs of our vendors, customers and team members.”
“Harrington has been gaining market share for many years, driven by differentiated technical expertise, product availability, and execution,” said Joe Robbins, a Partner at Bain Capital. “We have a great appreciation for the success the Company has achieved to date, and we are excited to support Harrington’s leadership and continued growth in the years to come.”
Bain Capital Private Equity has a long history of investments in specialty distribution and is one of the most active investors in the sector both in the U.S. and globally. The firm’s relevant global experience includes investments in US LBM, Imperial Dade, Dealer Tire, PartsSource, Diversey, HD Supply Holdings, Inc., Autodistribution, Brenntag, and IMCD.
Chris Pierce, Managing Director of Nautic, said “Nautic was fortunate to partner with a strong and deep management team to carve out Harrington from its corporate parent and accelerate the Company’s growth trajectory. We would like to thank Dave Abercrombie, Bob Graham, Frank Yang, and the rest of the Harrington team for their accomplishments during our investment. Thanks to their efforts and the initiatives they have executed on over the past three years, we believe Harrington is well-positioned to continue to enjoy exceptional growth in the years to come.”
The transaction is expected to close in the fourth quarter of 2023 and is subject to customary closing conditions, including requisite regulatory approvals. Debt financing for the transaction is being provided by the Private Credit business within Goldman Sachs Asset Management, BMO Capital Markets, Oak Hill Advisors, L.P., and Jefferies Credit Partners.
Baird and BMO Capital Markets are serving as financial advisors to Bain Capital. PricewaterhouseCoopers LLP is serving as accounting advisor, and Kirkland & Ellis LLP is serving as legal counsel to Bain Capital. Jefferies and William Blair are serving as financial advisors, CBIZ Private Equity Advisory is serving as accounting advisor and McDermott Will & Emery LLP is serving as legal counsel to Harrington and Nautic Partners.
Harrington has been a leading distributor of industrial process solutions since 1959. With a national presence, Harrington distributes and fabricates products that move fluids in corrosive and high-purity process applications. Products include thermoplastic pipes, valves, fittings, tanks, tubing and hose, pumps, filtration, and instrumentation. Harrington has achieved above-industry growth for decades through a relentless focus on customer service and bringing expertise to the table for customers and suppliers. The success of Harrington is built upon a clear set of operating principles which equally value customers, suppliers, and employees. For more information on Harrington visit www.hipco.com.
About Bain Capital Private Equity
Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity's global team of more than 280 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 23 offices on four continents. Since its inception, the firm has made primary or add-on investments in more than 1,150 companies. In addition to private equity, Bain Capital invests across multiple asset classes, including credit, public equity, venture capital and real estate, managing approximately $175 billion in total assets and leveraging the firm's shared platform to capture opportunities in strategic areas of focus. For more information, please visit: https://www.baincapitalprivateequity.com/.
About Nautic Partners
Nautic Partners is a Providence, Rhode Island-based middle-market private equity firm that focuses our expertise and market knowledge on three sectors: Healthcare, Industrials, and Services. Nautic has completed over 155 platform transactions throughout our 37-year history. In pursing our thematic and proactive investment strategy, we seek to partner with executives and management teams in an effort to accelerate the growth trajectory of our portfolio companies via acquisitions, targeted operating initiatives, and increased management team depth. For more information, please visit www.nautic.com.