— Jeff Ward, Lehigh Valley News Briefs
Arcline Investment Management, a private equity firm, is acquiring Rotating Machinery Services, a Bethlehem Township-based maker of machine parts.
RMS, as the local business is known, was founded in 1998, according to an Arcline statement. It makes parts, repairs turbomachinery parts and provides other services. Turbomachinery includes rotors, turbines, compressors and other devices.
Arcline did not provide the price of the transaction. San Francisco-based Arcline’s brands include American Elevator, Dwyer and others.
“Our goal is to create value by identifying and unlocking the breakout potential of our portfolio companies,” Arcline says on its website.
RMS makes original-equipment (OEM) and third-party parts and fits in with Arcline’s strategy:
“RMS demonstrates key traits we look for in our portfolio companies” as a maker of essential machine parts, according to the acquirer’s statement.
“Arcline’s deep industry and business model experience and focus on growth is a perfect match with our management team, employees, and customers,” John Bartos, chief executive of RMS, said in the statement.
Rotating Machinery Services operates out of nine facilities and serves a global market, according to the Arcline statement. Its Bethlehem Township location is on a 3.2-acre tract at 2760 Baglyos Circle.
Private equity firms, like Arcline, raise pools of money to acquire businesses or stakes in businesses, and then seek to increase the value of those businesses.
Private equity has been criticized, as some firms have made immense profits and been deemed “vultures.” Proponents of private equity say the firms invest in businesses with growth potential, and promote innovation.
Below is the statement from Arcline, and here is a link to the statement and the firm’s website.
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Bethlehem, Pennsylvania, January 9, 2025 – Arcline Investment Management (“Arcline”), a growth-oriented private equity firm, today announced the acquisition of Rotating Machinery Services, Inc. (“RMS” or the “Company”), an Original Equipment Manufacturer (“OEM”) and leading third-party provider of parts and services to a long-lived installed base of critical turbomachinery infrastructure globally.
Founded in 1998, RMS has reinvented the concept of an aftermarket turbomachinery business. The Company is equipped to provide a full suite of services including parts manufacturing, component repair, engineering, metrology, and service for both OEM and non-OEM equipment.
Arcline commented, “RMS demonstrates key traits we look for in our portfolio companies as a provider of mission critical, highly engineered, non-discretionary aftermarket parts and services to a massive installed base of critical infrastructure. The Company has an excellent reputation among customers and employees and is led by an experienced and deeply knowledgeable management team. We are confident the growth-oriented culture at RMS will fit well within the Arcline portfolio, and we are excited to partner with the management team for the Company’s next chapter of growth.”
John Bartos, CEO of RMS, added, “Arcline’s deep industry and business model experience and focus on growth is a perfect match with our management team, employees, and customers. Our success has been made possible by the hard work and dedication of the entire team at RMS, and we look forward to working with Arcline to continue executing on our vision to redefine the aftermarket turbomachinery business through superior parts offering, service, expertise, and customer focus.”
BMO served as financial advisor to Arcline in connection with the transaction.
About Arcline Investment Management
Arcline Investment Management is a growth-oriented private equity firm with $9.1 billion in cumulative capital commitments. Arcline seeks to invest in technology-driven, meaningful to the world industrial businesses that enable a better future. For more information visit http://www.arcline.com.
About Rotating Machinery Services, Inc.
Rotating Machinery Services, Inc. is headquartered in Bethlehem, Pennsylvania, and is a leading provider of specialty aftermarket repair, maintenance, and overhaul services for large, highly engineered turbomachinery. The Company operates out of nine facilities and serves a diverse, global customer base across a wide range of end markets.
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