Published in the Tulsa World 7/29/2007
D.L. Perkins-Acquisition Advisors (previously Vercor) recently completed the recapitalization of Air Cooled Exchangers Inc., a Broken Arrow company that manufactures custom air-cooled heat exchangers.
The transaction closed June 29. Transaction costs were not disclosed.
Equity partner is Clearview Capital LLC of Old Greenwich, Conn., which now has 60 percent ownership of the company. The current management at ACE has retained a 40 percent stake, according to D.L. Perkins-Acquisition Advisors owner David L. Perkins Jr., and will retain the day-to-day management and control of the facility.
“We’re excited about the deal and our new partnership with Clearview,” said Tom Self, ACE president. “Our management team will be able to continue to operate the company just as always, but having Clearview as a partner will provide us with additional financial expertise and capital to continue expanding our business.”
ACE’s heat exchangers are used to cool gases and liquids in various industrial applications. Most of its products are sold to manufacturers of natural gas compression systems, with other end markets including refrigeration and processing plants, power generation and power plants.
Founded in 1964, ACE has 280 employees.
D.L. Perkins-Acquisition Advisors is a merger and acquisition advisory firm that specializes in transactions valued between $5 million and $100 million. It has offices in eight U.S. cities — including Tulsa — and a European affiliate.
Perkins said there are several reasons for a company to recapitalize, among them providing “an opportunity for them to take a lot of money off the table.”
“If you think about it, all of their money is tied up in the business,” Perkins said. “They can take some of the cash out and invest it in other places for a more diversified asset base.”
By “selling a chunk of the business,” he said, it allows management to still run the company — to still be in charge — but to spread out the liabilities.
“Recapitalization simply means changing the capital structure of the business, and this transaction provides the perfect scenario,” Perkins said.