Helios Technologies, Inc. completed the acquisition of Balboa Water Group Inc. from AEA Investors LP.
November 05, 2020
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Helios Technologies, Inc. (NasdaqGS:HLIO) entered into a definitive agreement to acquire Balboa Water Group Inc. from AEA Investors LP for approximately $220 million on October 9, 2020. The purchase price for Balboa represents a multiple of 9.3x 2020 estimated adjusted EBITDA. Prior to the closing of the merger, certain indirect subsidiaries of Balboa Water Group will be transferred to ICM Holdco. Helios plans to fund the transaction through a combination of cash and existing and new credit facilities. As of October 28, 2020, Helios Technologies entered into a $900 million senior secured credit agreement, which is inclusive of a $300 million accordion feature. Helios plans to use the proceeds of the credit agreement for repayment of its existing credit facilities, for working capital purposes, to finance acquisitions such as the purchase of Balboa Water Group and for general corporate purposes. The transaction is subject to customary closing conditions, applicable waiting periods under the HSR Act, stockholder approval of Helios and regulatory approvals. As of November 3, 2020, Federal Trade Commission granted the early termination notice. Helios expects to close the transaction in the fourth quarter of 2020. The Board of Directors of each of Helios and BWG Holdings have approved the merger. The transaction is expected to be accretive to adjusted EPS day one onward, and the first year ROIC is expected to exceed Helios’s WACC year 1. Morgan Stanley & Co. LLC acted as financial advisor and Bill Zawrotny, Jason Chang, William J. Zawrotny and Joanna Sutton of Jones Day acted as legal advisor to Helios. Houlihan Lokey acted as financial advisor and Steven J. Steinman, Erica Jaffe, Michael T. Gershberg, Nathaniel L. Asker, Tobias Caspary, Jeffrey Ross, Jason L. Greenberg, Peter L. Simmons, Joshua D. Roth, Eli Weiss and Donna Mussio of Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor to Balboa.
Helios Technologies, Inc. (NasdaqGS:HLIO) completed the acquisition of Balboa Water Group Inc. from AEA Investors LP on November 6, 2020. The deal was financed with cash on hand and borrowings on the Company’s credit facility.
Helios Technologies, Inc. provides highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine and health and wellness. The Company's segments include Hydraulics and Electronics. The Hydraulics segment designs and manufactures hydraulic motion control and fluid conveyance technology products, including cartridge valves, manifolds, quick release couplings as well as engineers hydraulic solutions and in some cases complete systems. The Hydraulics segment includes products sold under the Sun Hydraulics, Faster, Custom Fluidpower, Taimi, Daman and Schultes brands. The Electronics segment designs and manufactures customized electronic controls systems, displays, wire harnesses, and software solutions for a variety of end markets. The Electronics segment includes products sold under the Enovation Controls, Murphy, Zero Off, Balboa Water Group and Joyonway brands.
HELIOS TECHNOLOGIES, INC. 
