Texas Pacific to acquire Celerity

The buyout giant’s purchase of the company, which produces fluid-delivery instruments, includes the co-investment and rollover of existing equity held by Ares Management, Gryphon Investors and Tennenbaum Capital.

Private equity powerhouse Texas Pacific Group has agreed to buy Celerity Group, a California-based provider of gas and chemical delivery process modules used in the manufacture of semiconductors, flat panel displays and related products.

Terms were not disclosed.

The deal includes an equity investment by TPG, assumed debt, and the co-investment and rollover of existing equity held by existing private equity investors including Ares Management, Gryphon Investors, and Tennenbaum Capital Partners.

Behrman Capital currently owns 20 percent of Celerity, and Deutsche Bank is also a major investor.

Formed as Kinetic Holdings in 1999, Celerity restructured earlier this year and divested Kinetic Systems, which represented an inconsequential amount of sales. Semiconductor manufacturer Applied Materials accounts for most of the company’s sales.

The deal is expected to close at the end of the year, at which time Celerity will withdraw its registration for initial public offering from the US Securities and Exchange Commission.

Texas Pacific most recent big buy took place in September, when it teamed with Sony Corporation of America and fellow firms Providence Equity Partners and DLJ Merchant Banking Partners, and agreed, “in principle”, to acquire publicly traded movie studio Metro-Goldwyn-Mayer in a deal that values the Hollywood veteran at nearly $3 billion (€2.4 billion).