FloWorks Achieves Successful Refinancing with OHA Support

FloWorks Successfully Completes Refinancing Initiative

FloWorks International LLC, a prominent distributor of essential flow control products, has successfully completed a significant refinancing initiative. This achievement, which is part of their strategy to enhance operational capacity, further positions the company to capitalize on future growth and acquisition opportunities.

Key Partnerships and Financial Structure

In this financial undertaking, Oak Hill Advisors (OHA), a distinguished platform under T. Rowe Price Group, Inc. (NASDAQ:TROW), has served as the Administrative Agent and Lead Left Arranger for the newly established private unitranche facility. Notably, OHA is the primary stakeholder in this financing arrangement, which is designed to refinance existing debt while providing the financial flexibility to pursue further acquisitions.

Insights from Leadership

Greg Gleason, the Managing Partner at Wynnchurch Capital, expressed enthusiasm regarding the partnership with OHA, stating, “We are excited to be partnering with OHA on this important financing for FloWorks and believe they will be a strong partner in supporting FloWorks’s continued, accelerated growth.” Additionally, Steve Yan, the Head of Debt Capital Markets at Wynnchurch, noted the importance of this financing transaction, emphasizing their commitment to build a lasting relationship with OHA for future endeavors.

Understanding FloWorks’ Growth Potential

Eric Muller, a Partner and Portfolio Manager at OHA, highlighted their confidence in FloWorks’ business model, attributing their ability to scale efficiently as a key factor in their decision to invest. OHA’s motivation stems from their familiarity with the specialty distribution sector, where they have directed investments in similar companies. This understanding positions them well to support FloWorks during their growth phase.

FloWorks: A Leader in Specialty Distribution

FloWorks is recognized as a leading specialty distributor of critical flow control products, offering tailored technical solutions primarily aimed at maintenance, repair, and operations (MRO) applications. Operating from Houston, Texas, the company supports diverse industries including chemicals, downstream refining, renewables, and high-purity applications. Their extensive product range encompasses various categories such as valves, automation, corrosion-resistant flow control systems, and instrumentation.

Expanding Operations and Market Reach

This refinancing will not only bolster FloWorks' financial structure but also enable the company to pursue strategic acquisitions that enhance their market position. With a commitment to serving their clientele with high-quality products and services, FloWorks aims to extend its reach throughout various industrial sectors, thereby driving further business growth.

Role of Wynnchurch Capital

Wynnchurch Capital, L.P., which oversees numerous private equity funds amassed at $9.2 billion in regulatory assets, specializes in partnering with middle-market companies identified for their growth and profit potential. Their recent investments demonstrate a tailored approach to scaling operations across diversified sectors, illustrating their strategy to back companies like FloWorks.

Future Aspirations and Strategic Plans

Given the current financial backdrop and the strategic alliances formed, FloWorks is well positioned for a robust growth trajectory. The combination of enhanced financial capacity and experienced partners such as OHA and Wynnchurch Capital sets the stage for not only the continuation of their operations but for ambitious expansion plans in the specialty distribution industry.

Conclusion

As FloWorks navigates this pivotal refinancing, the company anticipates a bright future marked by innovation and expansion. With the support of experienced partners, they remain committed to pursuing new opportunities while reinforcing their existing market leadership.

Frequently Asked Questions

What does FloWorks specialize in?

FloWorks is a leading specialty distributor of critical flow control products, focusing on MRO solutions in various industrial markets.

Who arranged the financing for FloWorks?

Oak Hill Advisors (OHA) served as the Administrative Agent and Lead Left Arranger for FloWorks’ financing.

Why is the refinancing important for FloWorks?

The refinancing positions FloWorks to enhance its financial flexibility, enabling future acquisitions and operational scaling.

What type of products does FloWorks offer?

FloWorks offers a range of products including valves, automation solutions, flow control systems, and instrumentation for MRO applications.

What is the role of Wynnchurch Capital in this deal?

Wynnchurch Capital partners with FloWorks to support its growth strategy and assist in financing activities through strategic investments.

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