Target: Thermon Holding Corp.
Sponsor: Code Hennessy & Simmons
Seller: Audax Group
Equity for the deal would come from Code Hennessy’s fifth buyout fund, a $1.3 billion pool of capital the Chicago-based buyout shop closed in 2005. For Audax, the deal would generate an exit for
Founded in 1994, Thermon makes products that help protect cables, pipelines, tanks and other equipment used in the oil and gas and power industries from excessive heat or cold. The company has operations in North America, Europe, Asia and Australia, and its customers have included Exxon Mobil Corp., Bechtel, Halliburton Co. and Lukoil. Audax bought Thermon in September 2007.
Thermon would be an attractive target for Code Hennessy & Simmons given the company’s global reach and the firm’s interest in companies that make products or provide services for infrastructure-related concerns. The firm’s portfolio includes American Asphalt & Grading Co., a company that provides construction services to the Southern Nevada residential market; Gundle/SLT Environmental Inc., a designer and manufacturer of geo-synthetic linings used in the containment and management of solids, liquids and gasses for the waste management, mining and other industries; and Penhall International Corp., a provider of concrete cutting, breaking and excavation and highway grinding services in the U.S.
Officials at Code Hennessy & Simmons, Audax and Thermon were not immediately available for comment.