Fox Innovation acquires Cotter Holdings
Fox Innovation & Technologies, a provider of advanced technological solutions specialising in high-speed rotating equipment, has acquired Cotter Holdings Group, a rotating machinery services provider.
This strategic acquisition will significantly enhance Fox’s field operation capabilities and expand its footprint across the US.
Fox will be leveraging the Cotter Group’s extensive experience executing critical service projects in the field to expand Fox’s offering to provide a comprehensive and efficient full-service solution to its clients.
The combined expertise of both companies will facilitate the development and implementation of innovative solutions tailored to meet the market’s evolving needs.
Notably, this acquisition encompasses Cotter Group’s portfolio, including S.T. Cotter Turbine Services, Axis Mechanical Group, and Axis Industrial Repair services, which collectively employ up to 500 individuals at peak capacity and will take the Fox platform to over $100 million in LTM revenue on a proforma basis.
Vincent Volpe, CEO of Fox Innovation & Technologies, says: “Approximately three years ago, when we were seeking financial backing, I contacted Tom Sikorski (a founding partner at Blue Water).
“The fundamental plan we agreed upon required first and foremost that we develop world-class technology around compressor flow path efficiency.
“That is now in place. The second and third legs of the strategic stool required a) manufacturing and repair capability, and b) a field services organization capable of effectively connecting our solutions directly to the end users.
“The Revak acquisition provided us the second leg, and over the last 12 months we have made good progress in the integration and reconfiguration of the facility and key processes to meet our future needs.
“In looking for a Field Operations solution we sourced, evaluated and undertook due diligence on three major players in the space.
“While each of the potential targets had its merits, the operating margins and working capital management we found at the Cotter Group companies set it apart from its competitors.
“The company is well run, and while there will be areas where shared services combinations will bring us stronger global singular processes, the clear message is that we are already actively working on the sales and marketing synergies that should increase the value we bring to our clients, and thereby allow us to grow profitably over the long term.
“This acquisition is a defining step forward for Fox Innovation & Technologies.
“We started this business over 17 years ago and are very proud of the success we have achieved in the market. We are grateful to our clients and our top-notch field craft as well as our supporting cast of people for the value they added to the company and our customers.
“Fox brings the technology and manufacturing capabilities that can take us to the next level.”
Tom Sikorski, founding partner at Bluewater, says: “This acquisition is highly strategic for Fox and a testament to the strength and potential of both companies.
“We are pleased with the continued progression of the Fox platform and are excited to see them continue to focus on expanding their best-in-class operations within the compressor and broader rotating equipment market in new complementary service lines.
“With the Revak manufacturing and repair division delivering on our expectations under Fox’s management, we see this as a similarly great opportunity and will be supportive partners to the Cotter Group for its next chapter under Fox’s stewardship on its US and global growth trajectory.
“We are fortunate to have the chance to work again with Vince Volpe and his team on this platform, with the successful addition of the business Shawn Cotter has built being further evidence and validation of their ability to recreate the prior success of Dresser-Rand.”
Daniel Badzire-Smith, vice president at Bluewater, says: “Having worked on this transaction with the Fox leadership team I see the merits in both the synergy potential of the acquisition in the combination of Fox and the Cotter Group as well as the new additions to an already industry leading management team.”
The integration process will begin immediately, with a focus on ensuring a seamless transition for both companies’ employees and clients. Fox and the Cotter Group are committed to maintaining the highest levels of service and support throughout this period.
The cost of the transaction is undisclosed.