First Reserve Acquires Ameriforge Group
First Reserve Corporation, a global investment firm dedicated to the energy industry, and Tanglewood Investments Inc., a Houston-based private equity firm focused on equipment manufacturing firms serving the energy industry, jointly announced that First Reserve Fund XII, in partnership with Ameriforge’s management, has agreed to acquire Ameriforge Group, Inc., from Post Oak Companies LP, an affiliate of Tanglewood. The transaction is expected to close in December. Harris Williams & Co. is acting as the exclusive advisor to Ameriforge.
Ameriforge is a vertically integrated manufacturer of highly engineered products, subassemblies and integrated systems for the oil and gas, midstream, downstream, power generation, aerospace, transportation and industrial markets. The executive management team will remain in place and will retain an equity interest in the company. In addition, the three founders and principals of Tanglewood will be continuing equity investors in Ameriforge.
Gean B. Stalcup, CEO of Ameriforge commented, “First Reserve’s investment represents a key milestone for our company. During our partnership with Tanglewood, we were able to transform Ameriforge from a single location flange forging company focused on the North American market to a fully-integrated, 29 facility international manufacturing enterprise which is providing a growing array of highly technical products and related services to the global energy, aerospace and transportation industries.”
Jeff Quake, managing director of First Reserve said, “We are excited to partner with this highly talented management team and support their continued investment in innovative technology-led product solutions. We believe Ameriforge’s best-in-class manufacturing capability positions them well to participate in several of our core themes including international subsea development, the application of technology to extract unconventional resources and continued growth in recurring after-market related services.”
Michael L. Tiner, managing director of Tanglewood and current chairman of Ameriforge Group added, “My two partners at Tanglewood and I could not be more pleased with this transaction. We are strong believers in the future of Ameriforge and have affirmed that conviction by our continuing personal investments in the company alongside First Reserve. I very much look forward to continuing my relationship with Ameriforge as a member of its Board of Directors. The time had come for Ameriforge to seek a larger and more capable financial partner in order for the company to realize its full potential. First Reserve is an ideal fit in every respect to be that partner.”