HOUSTON, TX, January 3, 2023 – Capstreet, a Houston-based lower middle market private equity firm, announced today that it has sold TFH Reliability Group, LLC, the parent company of Allied Reliability, Inc. (“Allied Reliability” or the “Company”), a provider of predictive maintenance products and solutions for manufacturing and processing customers, to Pennzoil-Quaker State Company d/b/a SOPUS Products, a subsidiary of Shell USA, Inc. (“Shell”). Terms of the transaction were not disclosed.
Based in Houston, TX, Allied Reliability is a holistic asset health and reliability solutions provider, bringing together processes, content, knowledge, data and technology to optimize the asset journey for its customers. The Company’s reliability-centered solutions include condition monitoring, advanced diagnostics, lubrication systems and services, electrical services, consulting and training, and several aftermarket products and services.
Under Capstreet’s ownership, the Company grew significantly both organically and through acquisitions. Capstreet initially acquired T.F. Hudgins, Incorporated, a provider of engineered products for a wide range of industrial companies, and subsequently merged it with Allied Reliability, adding predictive maintenance capabilities and thus transforming the Company into an end-to-end industrial equipment reliability solutions provider. Capstreet also supported Allied Reliability’s three additional acquisitions: Jamison Products, a provider of standard and custom-designed engineered products for fluid handling industries; Texas Rotating Equipment, which improves steam-driven turbines, pumps, and gearboxes; and Pro-Line Inspections, which specializes in the use of infrared and ultrasound inspection technologies to identify equipment problems in advance of failure.
“Through Kevin’s leadership and his engaged management team, Allied Reliability brings innovative and sustainable solutions to its customers that improve the reliability and productivity of their assets,” said Adrian Guerra, Partner at Capstreet. “The sale to Shell is a good outcome for all parties, and we believe the Company will continue to thrive under its new owners.”
“It has been exciting to help Allied Reliability evolve into a comprehensive provider of service offerings that allow our customers to optimize production from their assets in a sustainable manner,” said Kevin Bourbonnais, President and CEO of Allied Reliability. “Capstreet has been a trusted partner in our efforts to expand the Company, and we remain ever grateful for their support as we begin our next chapter.”
Willkie Farr & Gallagher served as legal counsel and BlackArch Partners was the financial advisor for Capstreet. King & Spalding served as legal counsel for Shell.
Founded in 1990, Capstreet invests in lower middle market software, tech-enabled services, and industrial business services companies. With over 45 platform investments and over 200 add-on acquisitions since inception, Capstreet’s investment strategy is focused on utilizing its Capvalue Framework™ to help accelerate growth and profitability, and help create long term sustainable businesses. The majority of Capstreet’s investments have been with founder- or entrepreneur-owned businesses. For more information, visit the Capstreet website, www.capstreet.com.
About Allied Reliability
Allied Reliability specializes in protecting assets and driving reliability improvements for reciprocating and rotating machinery using proven solutions and in-depth application expertise. The Company leverages internal engineering, manufacturing, and project management capabilities, as well as the resources of leading manufacturing partners, to yield meaningful improvements in productivity, longevity, efficiency, cost-effectiveness, safety, and environmental compliance. For more information, visit https://www.alliedreliability.com.