Levine Leichtman Capital Partners and Management Acquire USA Industries

Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has partnered with management to acquire USA Industries, LLC (“USA Industries” or the “Company”) from Sky Island Capital. Financial terms of the transaction were not disclosed.

USA Industries is a leading manufacturer of industrial flow control and testing products such as piping isolation tools, tube plugs and other flow devices. The Company leverages its depth of product portfolio and differentiated speed to market to serve as a critical partner to customers in the pharmaceutical, industrial, refinery and chemical end markets. USA Industries was founded in 1982 and is headquartered in Houston, TX.

The Company will continue to be run by the existing executive team led by the CEO, Justin Watts. According to Micah Levin, Partner at LLCP, “We are excited to partner with Justin and the existing management team, who have driven impressive growth of USA Industries. The Company has proven to be an increasingly valuable supplier to its loyal customer base. Together we can build on this momentum and market position to continue this compelling growth trend.”

Andrew Alexander, Managing Director at LLCP, added, “USA Industries provides essential, must-have products integral to the operations of high value applications. The Company is well aligned to our engineered products sector investment criteria and has multiple attractive vectors for future growth. We are thrilled to work together with Justin and the entrepreneurial team at USA Industries to capitalize on these opportunities.”

Justin Watts commented, “Our partnership with LLCP is an exciting milestone for USA Industries. They offer valuable expertise in supporting and successfully growing businesses like ours, as well as a shared vision for the future and a collaborative approach. Our key priorities continue to be driving both organic growth and M&A by providing a best-in-class solution of products and services to our valued customers.”

USA Industries is a platform investment of LLCP Lower Middle Market Fund III, L.P.

Honigman LLP served as legal counsel to LLCP on the transaction. Debt financing was provided by Churchill.

Piper Sandler & Co. served as exclusive financial advisor to USA Industries. Jones Day served as legal counsel to USA Industries.

About Levine Leichtman Capital Partners

Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 41-year track record of investing across various targeted sectors, including Business Services, Franchising & Multi-unit, Education & Training and Engineered Products & Manufacturing. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. LLCP believes that by investing in a combination of debt and equity securities, it offers management teams growth capital in a highly tailored, flexible investment structure that can be a more attractive alternative than traditional private equity.

LLCP’s global team of dedicated investment professionals is led by 9 partners who have worked at LLCP for an average of 20 years. Since inception, LLCP and its affiliates have managed approximately $18.1 billion of capital across nearly 20 investment funds and has invested in approximately 120 portfolio companies. LLCP currently manages $12.7 billion of assets and has offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, Amsterdam and Frankfurt.