Houlihan Lokey Advises Fairbanks Morse Defense

Houlihan Lokey is pleased to announce that Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, LP (Arcline), has acquired Hunt Valve Company Inc. (Hunt Valve), a portfolio company of May River Capital. The transaction closed on September 13, 2021.

Fairbanks Morse Defense is a leading provider of mission-critical equipment to military and commercial marine customers. For more than 125 years, FMD has been a principal supplier of reliable power systems, parts, and aftermarket service to the U.S. Navy, Military Sealift Command, U.S. Coast Guard, and the Canadian Coast Guard. The company continues supporting the defense industry’s mission-critical operations with high-performance engines manufactured in the USA. OEM parts, expert services, and innovative solutions that improve performance and extend component lifecycles are provided to marine, nuclear, commercial, and export customers. FMD is based in Beloit, Wisconsin.

Arcline is a growth-oriented private equity firm that seeks to invest in thriving middle-market businesses in high-value industries. Arcline’s differentiated investment strategy combines deep business model expertise, proactive thematic research, an unrelenting focus on the upside, and a collaborative, management-first approach to value creation. The firm’s primary sectors of interest include defense, aerospace, critical infrastructure services, industrial and medical technology, life sciences, and specialty materials. Launched in 2019, Arcline currently has $4.3 billion in cumulative capital commitments.

Hunt Valve is a specialty manufacturer of naval valves and electromechanical actuators. The transaction includes Hunt Valve, the Hunt Valve Actuator Division, MB Valve (Montreal Bronze), and Pima Valve, LLC. With facilities located in Salem, Ohio, and Montreal, Quebec, Canada, Hunt Valve is considered an expert at engineering innovative fluid power solutions for its core defense and industrial customers. Through its four brands, Hunt Valve specializes in manufacturing durable and reliable severe-duty valves, complementary engineered components, and system solutions that can withstand the harshest environments and the toughest applications. Its valves and actuators are used aboard surface ships and submarines, including the Virginia-class submarine, Columbia-class submarine, and Ford-class aircraft carrier. Customers include the U.S. Navy, U.S. Navy shipyards, Naval Supply Systems Command (NAVSUP), and Defense Logistics Agency.

May River Capital is a Chicago-based private equity firm focused on investing in lower middle-market industrial growth companies. May River Capital invests in high-quality industrial growth businesses, including precision manufacturing, engineered products, specialized industrial services, and value-added industrial distribution businesses.

Houlihan Lokey served as the exclusive buyside financial advisor to Arcline. The transaction exemplifies the continued success of Houlihan Lokey’s dedicated coverage of the industrial technologies and aerospace and defense sectors.