American Industrial Partners buys Brooks Instrument

01/15/2008

New York, NY, January 3, 2008 - American Industrial Partners Capital Fund IV, L.P. today has announced that its newly formed Brooks Instrument, LLC, has acquired the Brooks Instrument division of Emerson Electric Co. on December 31, 2007. Brooks is a supplier of flow measurement and control devices to the low flow application market. AIP is a private equity investment firm that applies an operational approach to building and improving middle-market companies.
 
Brooks is headquartered in Hatfield, Pa., with manufacturing locations in Hungary, France, the Netherlands and Japan. It maintains sales offices throughout the world, and its products are used to regulate the flow rates of gases and liquids in laboratory and process applications in end markets, such as life sciences, chemicals, semiconductor, analytical instruments, nuclear and solar cells. Brooks' products include variable area meters, thermal mass flow meters, Coriolis flow meters, magnetic level gauges and float switches. These products are frequently mission-critical and are often configured to address specific technical requirements of end use applications. Approximately half of the company's sales are recurring revenues driven by its large installed base established by Brooks in over 60 years of industry leadership.
 
"Brooks Instrument has all the attributes we look for in a portfolio investment: leading market positions, global demand, attractive end-market growth, proprietary technology, an attractive and capital efficient business model and a strong management team," said John Becker, a partner of American Industrial Partners who will serve as Chairman of the acquired company. "The Brooks management team has established a strong track record of growth and accomplishment. We believe our partnership can further accelerate the growth and profitability of this business."
 
Jim Dale, CEO of Brooks, said, "Strong end market growth and new demand in emerging markets such as China, Eastern Europe, Latin America and Asia have driven double-digit growth at Brooks in recent years. We look forward to partnering with the American Industrial Partners team and have charted a going-forward operating agenda focused on new product development, service and cost leadership, emerging market penetration and synergistic acquisitions. The Brooks team is very pleased to be part of the ownership group."
 
American Industrial Partners partnered with HSBC in the acquisition of Brooks. Lenders to the transaction included GMAC Commercial Finance and AIG.