has recapitalized with

Capstone Partners Advises Vapor Power International, LLC on its Recapitalization by Stone Pointe, LLC

April 2014

Chicago, IL - Capstone Partners LLC, a leading investment banking firm, has successfully advised Vapor Power International, LLC on its recapitalization by Stone Pointe, LLC and management. Terms of the transaction were not disclosed.

Vapor Power manufactures boilers, steam generators, thermal fluid heaters and electric boilers for use in industrial, commercial, marine and military boiler applications around the globe. The Company’s assets were purchased in a management buyout from Wabtec Corporation in 2001 and the management team successfully gave new life to ‘orphaned’ product lines that had a rich history and utilized strong, proven technology. Over time, management built Vapor Power into a successful standalone company which has developed a reputation as a premier designer and manufacturer of boilers, steam generators and liquid phase heaters. It occupies unique market niches and offers high quality and technologically superior products that are fast, efficient and economical. “We are proud of Vapor Power’s success and accomplishments and believe that, teamed with Stone Pointe, the company is well-positioned for additional growth and future success,” noted Bob Forslund, President of Vapor Power.

Stone Pointe, LLC is a private investment firm focused on small and meduim sized businesses. It works with privately owned companies to facilitate ownership transitions and provide growth equity capital solutions. Commenting on the transaction, Lee Vandermyde, Managing Partner of Stone Pointe, said, “We are very excited to partner with Vapor Power’s experienced management team led by Bob Forslund. The team has done an excellent job of positioning the company as a market niche leader of steam generators and thermal fluid heaters. We look forward to supporting the future growth of Vapor Power under their leadership.”

Capstone Managing Director, Ted Polk, commented, “M&A activity in this industry, and the broader industrial infrastructure market, is accelerating, with particularly high interest from private equity investors attracted by the industry’s fragmented nature and steady demand. Although this is a relatively mature industry, companies with unique technologies and defensible market positions are highly sought after. We are pleased to team our client with a private equity firm looking to strategically expand the business, and we are happy to have successfully represented this business and its management team."

 

Industry Experience

Industrial & Manufacturing

Lead Professional

Theodore Polk

Managing Director
"I have had the pleasure of working with the Capstone team on multiple occasions. Their depth of M&A expertise and  their  industry knowledge were very helpful to us. During each transaction, they made recommendations  on the positioning of the business and  the structuring of the transaction that had a significant positive impact on our results. A Managing Director worked closely with us throughout the process and overall they provided us with trusted, objective advice and technical expertise.”  
Bob Forslund
CEO & Principal Shareholder
Vapor Power International