Private equity group Graham Partners Inc. reportedly is ready to sell septic tank maker Infiltrator Systems Inc. after holding the Old Saybrook, Conn.-based company for almost nine years.
Infiltrator products have been sold to the wastewater industry market since 1987. Graham acquired the business in November 2005 as a portfolio company, which has since made add-on acquisitions.
Thomson Reuters Group's PEHub.com reported Aug. 18 that Infiltrator is for sale. The report cited two unnamed sources. Graham officials had no immediate comment on the report.
Graham invests in North American companies with earnings before interest, taxes, depreciation and amortization (EBITDA) of $5 million to $50 million. Infiltrator is at the highest end of that range and Graham is seeking bids of at least eight times EBITDA, according to the PEHub.com report.
During the longer-than-average hold time, Infiltrator literally has received some big investments — the most recent in March, when a mammoth injection press with 6,000 tons of clamping force began molding 15-foot-long septic tank halves. Infiltrator said the press is the world's largest low-pressure injection molding machine, with the largest hot runner manifold system in the world.
To diversify its product offerings, in December, Infiltrator bought New Jersey-based ICC Technologies LLC, which designs and manufactures similar products for synthetic, aggregate drainage systems, and has a new line of injection molded tanks.
Graham has been active this month, parting with Strata Products Worldwide and Strata Proximity Systems in a combined sale after less than fours years of ownership.
Also in 2014, Graham acquired HemaSource Holdings LLC, a supplier of medical disposables to blood therapies companies; Bel-Art Products of New Jersey, which makes laboratory products (through its portfolio company SP Industries); and blow molder Precision Medical Inc., which makes bottles and containers for the food and household chemical markets.
Graham says on its website that it is focused on investing in businesses with advanced manufacturing technologies, innovative product development capabilities and strong growth potential.