Graycliff Partners has acquired XCEL NDT, a provider of non-destructive testing services for assets used in the petrochemical, pipeline and general industrial sectors, from Pine Tree Equity.
XCEL’s services are used to detect structural issues such as corrosion and cracking, as well as material composition and grade and include radiographic testing, ultrasonic thickness testing, leak testing, visual testing, magnetic particle testing, and ultrasonic testing.
In addition, the company provides a range of support services including conducting safety meetings, OSHA compliant training, site safety audits, and document preparation, manuals, procedures, checklists and document management.
XCEL, led by CEO Cole Morehead is headquartered 125 miles east of Dallas in Longview, Texas and operates 16 additional facilities in Kansas, Nebraska, Colorado, Minnesota, Iowa, Missouri, Oklahoma, Texas, West Virginia, Virginia, North Carolina, South Carolina, Louisiana, and Montana.
“We are thrilled to move forward with Graycliff as our strategic and financial partner,” said Mr. Morehead. “The team at Graycliff took the time to understand our business thoroughly and ensure all our goals were aligned. We’re eager to leverage their knowledge, resources, and strategic direction to take XCEL to the next level.”
“We are impressed by the experience, passion and enthusiasm of the team at XCEL,” said Garrett Wentzell, a principal at Graycliff. “We are excited to partner with the team to drive continued growth, both organically and through acquisition.”
Graycliff invests from $10 million to $50 million of control equity in companies with revenues of $10 million to $200 million and EBITDA of $4 million to $20 million. Sectors of interest include niche manufacturing, value-added distribution, and industrial services.
Last month, Graycliff closed the firm’s fifth lower middle market private equity fund, Graycliff Private Equity Partners V LP, at its hard cap of $600 million in limited partner commitments. New York City-based Graycliff was formed in December 2011 by the former investment team of HSBC Capital.
Miami-based Pine Tree Equity invests in companies that have revenues of $10 million to $50 million and EBITDAs of $2 million to $7 million. Sectors of interest include business, consumer and financial services; consumer products; franchisors and franchisees; and niche manufacturing.
© 2023 Private Equity Professional | November 3, 2023
