PSC, a portfolio company of Littlejohn & Co. LLC, and Aquilex Holdings, LLC, owner of HydroChem and a portfolio company of Centerbridge Partners, L.P., have signed a purchase agreement whereby PSC will acquire all of the outstanding ownership interests of Aquilex, combining both PSC and HydroChem to create one of the largest industrial cleaning and environmental services company in North America.
The combined company will be led by executives from both organizations: Gary Noto, HydroChem’s current CEO, will serve as the company’s Vice-Chairman and a member of the board; and Brad Clark, CEO of PSC, will serve as its CEO and President, and will also join the board.
“This combination will provide our customers with the safest and most efficient operational experience, and ensure our employees receive the most comprehensive training and career development opportunities,” said Mr. Clark. “PSC and HydroChem both share rich histories, a strong commitment to our people and deep values that promote safety, craft apprenticeship and collaboration.”
Mr. Noto added, “The new company will have a deep operational bench, more than 5,000 employees, and, when combined with our industry-leading automation technology, will create exceptional value for clients with challenging maintenance needs.”
Michael Kaplan, a Managing Director at Littlejohn & Co., commented: “We are excited to bring together two great companies under combined leadership that represent the best talent in the industry.”
Kyle Cruz, Senior Managing Director at Centerbridge Partners said, “We are proud to have partnered with HydroChem's senior management team and its dedicated employees to revitalize the business over the past five years. Given the strong momentum in HydroChem's business, this combination with PSC will allow it to provide its differentiated offering to new customers.”
The combination is subject to customary closing conditions and is expected to close later this year promptly following the termination of the applicable waiting period under the HSR Act.