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First Reserve buys energy, aero manufacturer Ameriforge from Tanglewood

27 Nov 2012

Energy-focused private equity firm First Reserve Corporation has agreed to buy energy and aerospace equipment manufacturer Ameriforge Group from Texas-based buyout house Tanglewood Investments.

Neither firm disclosed financial details for the transaction, which will see the three founders and principals of Tanglewood remain as equity investors in the company.

During Tanglewood’s 13-year ownership the company has grown from a single-location flange forging company focused on the US market to a 29-facility international manufacturer for the energy, aerospace and transport industries.

First Reserve managing director Jeff Quake said, “We are excited to partner with this highly talented management team and support their continued investment in innovative technology-led product solutions.

“We believe Ameriforge’s best-in-class manufacturing capability positions them well to participate in several of our core themes including international subsea development, the application of technology to extract unconventional resources and continued growth in recurring after-market related services.”

Tanglewood managing director and current Ameriforge chairman Michael Tiner said, “My two partners at Tanglewood and I could not be more pleased with this transaction.

“We are strong believers in the future of Ameriforge and have affirmed that conviction by our continuing personal investments in the company alongside First Reserve.”

He added, “The time had come for Ameriforge to seek a larger and more capable financial partner in order for the company to realize its full potential. First Reserve is an ideal fit in every respect to be that partner.”

First Reserve is currently targeting $6bn for its latest buyout fund, less than both the $8.8bn vehicle it raised in 2008 or its $7.8bn fund from 2006.

Energy-focused private equity giant Riverstone is preparing to break through its $6bn target for its latest buyout fund thanks to a strong take-up from investors, AltAssets learned earlier this week.

Riverstone Global Energy & Power Fund V has already collected more than $5.8bn of commitments and plans to continue targeting LPs through to mid-February, according to two sources with knowledge of the fundraise.

Copyright © 2012 AltAssets

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