The Watermill Group Acquires Two Elite Metals Manufacturers

Fine Tubes Ltd. and Superior Tube Company Combine Forces to Expand Global Presence and Accelerate Growth

Lexington, Mass. – Sept. 11, 2012 – The Watermill Group, a strategy-driven private investment firm, announced the acquisition of two manufacturers specializing in high-precision metal tubing – Fine Tubes Ltd. in Plymouth, United Kingdom, and Superior Tube Company Inc. in Collegeville, Pa. – from Superior Group Inc., a privately owned industrial holding company. Watermill will help the two specialized metals companies combine forces to create a global leader in high-performance metal tubing.

“Watermill was attracted to the unique, high quality and highly technical capabilities of these companies,” said Steven E. Karol, Founder and Managing Partner at The Watermill Group. “Our vision is to capitalize on the complementary strategic, technical and market strengths at each company to develop a thriving industry leader that can scale its production and grow alongside its customers.”

In bringing Fine Tubes and Superior Tube together, Watermill will pursue a focused strategy of improving manufacturing operations at both companies to increase production capacity and enhance service levels – all the while preserving the world-class product quality on which both firms have built their long-standing customer relationships. Fine Tubes and Superior Tube will also work closely on implementing new operational efficiencies, enhancing manufacturing practices and expanding distribution channels worldwide.

“We’re looking forward to sharing best practices with Superior Tube and capitalizing on the natural synergies between our firms to build a stronger global presence,” said Ronen Day, Managing Director of Fine Tubes, Ltd. “The Watermill Group brings resources to our company that will be key to the next phase of our growth. As Superior Tube and Fine Tubes work more closely together, customers can expect to see significant advancements in our service levels, production capacity and international reach.”

“The chief aim for both our firms is to elevate the service experience for our customers,” said Superior Tube CEO Anthony Jost. “Now that we’re combining the resources of three strong companies – Watermill, Fine Tubes and Superior Tube – we’ll be able to serve customers with a broader selection of high-performance products and improve our responsiveness, which should accelerate growth for both companies.”

Both Fine Tubes and Superior Tube manufacture high-performance metal tubing for blue-chip customers in industries requiring flawless performance under extreme operating conditions. For example, the companies supply high-pressure metal tubes used in critical equipment for the energy industry; lightweight, ultra-strong tubes capable of withstanding temperature extremes for aerospace applications; and precise failsafe tubes for medical devices, including patient implants.

Watermill will provide strong strategic guidance, expert advisors and hands-on support to both Fine Tubes and Superior Tube. Watermill investor and advisor David Robinson has been brought on to serve as Chairman of the Board for the combined company. Robinson most recently served as president of Tyco Fire and Security. He also previously held senior management positions at Motorola.

Download Tubes Closing Press Release

September 13, 2012