FRP completes divestment of third Stamm International subsidiary

FRP Corporate Finance has supported Stamm International Corporation (SIC) with the sale of Powrmatic USA – the third deal it has advised SIC on in as many years, and completing the divestment of the remaining subsidiaries within the group.

Each of the three businesses within SIC have a trading history of 70 years or more. Two of those are specialists within the industrial and commercial heating, ventilating and cooling marketplace; UK based Powrmatic Limited and US based Powrmatic USA.

Led by increasing customer and regulatory demand for energy efficient solutions, both manufacture standard systems and bespoke solutions for a wide variety of industrial and commercial premises. The third business, SF Limited (SFL), is a UK-based manufacturer and distributor of flues and chimneys active in both the residential stove and commercial chimney sectors.

SIC has sold Powrmatic USA to HVAC solutions provider, AirX Climate Solutions (ACS), based in Oklahoma City backed by private equity firm, Gryphon Investors of California.

FRP said the deal will enable ACS, through their group resources and expertise, to leverage the “extensive” technical know-how of the Powrmatic USA team in this high growth market area as they continue to back the incumbent management team.

SIC appointed FRP Corporate Finance’s Reading team, led by partner Simon Davies and senior manager Nick Wright, to act as lead sell-side advisers for the sale of all three subsidiaries within the group.

FRP added the team realised that a sale of the individual parts would achieve a better outcome for all three businesses, not just in terms of value but in terms of the potential fit and values of each business.

They provided end-to-end support on each transaction, from identifying potential buyers to leading on negotiations, ensuring that each deal was given sufficient time and focus in order to achieve the vendor’s objectives. FRP pragmatically managed each process through to a successful conclusion.

Simon Davies, partner at FRP Corporate Finance, said: “This sale marks the end of a three-year process for SIC, following an initial referral in 2020, seeking help to sell three of its subsidiaries, and we’re proud to have been able to support them successfully complete each sale. In every case, the acquirer shared SIC’s core values – something that was incredibly important from the outset for the SIC team.

“In AirX Climate Solutions, Powrmatic USA has found a partner with a strong market presence that will allow the business to continue to thrive. We wish all parties the very best for the future.”

Marilyn Skony Stamm, president and CEO at Stamm International Corporation, added: “Working with Simon and Nick has been an absolute pleasure. Although this transaction was the most challenging of all three deals, Simon and Nick delivered to the highest standard, seamlessly guiding us through the entire process, ensuring this deal got over the finish line.

“As the third transaction with FRP Corporate Finance, we couldn’t thank Simon and Nick enough for their support throughout the process and would highly recommend them to any other business owner in a similar situation.”