New York-based mid-market firm Irving Place Capital will sell industrial manufacturer Victor Technologies to NYSE-listed Colfax Corporation for about $947 million, generating a 3x return multiple, according to a source familiar with the matter.
Irving Place declined to comment.
Victor designs and manufactures metal cutting, gas control and specialty welding products. Irving Place will generate an IRR of more than 50 percent on the exit, the source said. The sale marks Irving Place’s first exit of 2014. The firm invested in Victor, previously known as Thermadyne Holdings Corporation, in 2010, investing from its $2.7 billion Irving Capital Partners Fund III that closed in 2006.
RBC Capital Markers and Blackstone Advisory Partners are acting as financial advisors to Victor.
In 2012, Irving Place acquired UK-based gas control equipment manufacturer Gas-Arc Group as an add-on acquisition for Victor. On a pro-forma basis, assuming the Gas-Arc acquisition occurred on 1 January 2013, Victor generated net sales of about $500 million last year and earnings before interest, tax, depreciation and amoritsation of about $100 million.
Irving Place is currently raising its Fund IV, which has a $2 billion target, according to Private Equity International’s Research and Analytics division. The firm focuses on making control investments of between $75 million and $250 million.
Irving Place has raised more than $4 billion of equity capital and has invested in more than 60 companies since its founding in 1997.