Two Metal Tubing Companies Bought by Investment Firm

Lexington, Mass.-based private investment firm The Watermill Group has acquired two manufacturers specializing in high-precision metal tubing: Fine Tubes Ltd. in Plymouth, United Kingdom, and Superior Tube Company Inc. in Collegeville, Pa. Watermill intends to join the capabilities of the two specialized metals companies to create a stronger global presence for them.

“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.”

Watermill’s stated goal is to pursue a focused strategy of improving manufacturing operations at both companies to increase production capacity and enhance service level. At the same time, Watermill intends to preserve each company’s strengths and established customer bases. Fine Tubes and Superior Tube also will 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.”

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

“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 a variety of industries that require strength under extreme operating conditions, including precise and purportedly “failsafe” tubes for medical devices and patient implants. Fine Tubes makes high-precision metal tubing in stainless steel, nickel, titanium and zirconium alloys, while Superior Tube makes small diameter metal tubing used primarily in highly engineered applications.

Photo of stainless steel tubing courtesy of Fine Tubes Ltd.