The Sterling Group to Sell Velcon Filters, LLC to Parker Hannifin Corporation

HOUSTON, TEXAS (October 5, 2012) – The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that it has entered into a definitive agreement to sell its portfolio company, Velcon Filters, LLC to Parker Hannifin Corporation (NYSE: PH). Terms of the transaction were not disclosed. Headquartered in Colorado Springs, Colorado, Velcon is a niche manufacturer of filtration systems, including vessels and replacement cartridges, which meet specific requirements for fluid filtration processes in a variety of domestic and international end-markets. When Sterling acquired the business from the founding family in 2009, the company was the domestic leader in the aviation fuel filtration industry. Today, Velcon has a global platform servicing the aviation, industrial and oil and …

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The Sterling Group to Acquire Dexter Axle from Tomkins Industries Inc.

HOUSTON, TX (September 27, 2012) – The Sterling Group, a middle market private equity firm based in Houston, Texas, today announced that its affiliated investment fund, Sterling Group Partners III, L.P., entered into a definitive purchase agreement to acquire all of the equity interests that comprise the Dexter Axle business from Tomkins Industries, Inc., a subsidiary of Pinafore Holdings B.V. The Dexter Axle business manufactures trailer axle, brake and suspension assemblies and related replacement parts and components. The closing of the transaction is subject to customary conditions and is expected to occur in the last quarter of 2012. About The Sterling Group Founded in 1982, The Sterling Group is a private equity investment firm that targets controlling interests in basic …

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Stackpole International, a Portfolio Company of The Sterling Group, Completes Refinancing

HOUSTON, TEXAS (August 7, 2012) – The Sterling Group announced today that its portfolio company, Stackpole International (“Stackpole”) completed the refinancing of its outstanding debt on August 2, 2012.  Stackpole is a manufacturer and sole source supplier of highly-engineered oil pumps and powdered metal components to automotive original equipment manufacturers.  Sterling acquired Stackpole on August 2, 2011 from Gates Canada, a subsidiary of Tomkins.  Stackpole raised $165 million of senior financing from a syndicate of banks, arranged by RBC and CIBC.  The proceeds of the refinancing were used to repay existing outstanding debt, including eliminating all mezzanine debt from the original transaction. The refinancing will result in a reduction of Stackpole’s annual debt interest costs by over 50%.  Under Sterling’s …

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