Parallel Investment Partners and White Deer Energy have exited an investment in Accelerated Companies, a provider of artificial lift and fluid handling products to the oil and gas industry. Dover will buy the business for $430 million.
Sources familiar with the transaction say that Parallel Investment Partners realized a 5x return on the deal over 6 years. White Deer realized a 3x return in just under 3 years.
Texas-based Accelerated will become part of Dover Artificial Lift, a business unit within Dover’s Energy segment. The acquisition will increase Dover’s market share in the US shale development market.
Accelerated was formed by Parallel’s simultaneous acquisitions of Central Hydraulics and Products Fabrication in 2008. Parallel completed eight subsequent acquisitions to build the business. White Deer invested through a recapitalization in January of 2012. The company grew from less than $30 million in revenue to over $200 million in revenue since formation in part due to an aggressive acquisition strategy.
Parallel focuses on lower middle market investments in core industry sectors including consumer, energy, and business services. White Deer focuses on energy investments largely in the US. White Deer closed its second energy investment fund last year on $1.38 billion, according to Private Equity International’s research and analytics division.