Wynnchurch Capital announced that it has entered into a definitive agreement to sell FWI Holdings, known as FloWorks, to Ferguson Enterprises. The all-cash transaction values FloWorks at an enterprise value of approximately $1.6 billion.
FloWorks is a Houston-based specialty distributor of critical flow control products and provider of tailored technical solutions for maintenance, repair, and operations-focused applications. The company serves customers across chemicals, downstream refining and renewables, high purity and sanitary, and other industrial end markets.
FloWorks’ product categories include valves and automation, corrosion-resistant flow control, rotating equipment, flanges, filters and purifiers, and instrumentation. These products and services support critical industrial operations where uptime, reliability, and technical expertise are important customer requirements.
Wynnchurch acquired FloWorks in January 2023. During Wynnchurch’s ownership, FloWorks completed seven strategic add-on acquisitions and expanded its platform into a specialty distribution business generating more than $1 billion of annual revenue.
Those acquisitions helped broaden FloWorks’ product and service offering, diversify its end markets, expand its geographic footprint, enhance its margin profile, and strengthen customer and supplier relationships. Wynnchurch also partnered with FloWorks management on operational improvements across supply chain and commercial excellence.
The sale to Ferguson marks another major exit for Wynnchurch, which has invested in industrial businesses for more than 25 years. Wynnchurch said FloWorks represented an opportunity to build a leading specialty distribution platform focused on engineered flow control products and technical solutions.
Wynnchurch also noted the support of Clearlake Capital Group, which retained a minority ownership interest after the company’s sale to Wynnchurch in 2023.
Jefferies served as lead financial advisor to FloWorks, and Solomon Partners also served as financial advisor. Foley & Lardner served as legal advisor to Wynnchurch and FloWorks.
Wynnchurch Capital is a middle-market private equity firm headquartered in Rosemont, Illinois, with an affiliate in Canada. The firm is currently investing out of its sixth private equity fund and manages approximately $9.1 billion of assets under management.
Recent Wynnchurch exits include the sale of Labrie Environmental Group to Hiab Corporation in a transaction valued at approximately $1.035 billion. Recent investments include MSHS Pacific Power Group, Sterno, NABRICO Marine Products, Charter Industries, and Astro Shapes.
KEY QUOTES:
“FloWorks represented an opportunity to build a leading specialty distribution platform focused on engineered flow control products and technical solutions. We executed a strategy combining strategic acquisitions with operational value creation and commercial excellence that strengthened the business and positioned FloWorks for continued long-term growth. We thank Scott Jackson and the entire FloWorks team for their dedication and partnership.”
Greg Gleason, Managing Partner at Wynnchurch Capital
“In partnership with management, we made significant investments in the commercial organization and technology infrastructure that unlocked meaningful pricing and cross-selling opportunities. FloWorks is well positioned for continued growth, and we are confident the business is poised for long-term success.”
Kevin Hanley, Principal at Wynnchurch Capital
“Wynnchurch has been a valuable partner, providing the resources, expertise, and strategic support that helped us scale the business and strengthen our platform. I am grateful for our successful partnership with Wynnchurch, proud of what our team has accomplished, and excited to join Ferguson alongside the entire FloWorks team as we continue building on that momentum.”
Scott Jackson, CEO of FloWorks
