COMPTON, Calif. — IPS Corporation announced a definitive agreement for funds advised by Centerbridge Partners, L.P., a leading private investment firm, to acquire IPS from Cypress Performance Group LLC. 

The transaction is expected to close in 2021 and is subject to customary closing conditions and approvals. Financial terms of the transaction were not disclosed.

"We are passionate about serving our customers and investing in our associates through the application of our business system and our deep culture of continuous improvement. I am truly excited to join with Centerbridge in our next chapter to continue our outperformance and strong positive momentum," said Dan St. Martin, CEO of IPS.

IPS provides specialized, highly engineered industrial products including solvent cements, rough plumbing and roofing products, and structural and surface adhesives. The company's brands include Weld-On®, Christy's™, Water-Tite®, Studor®, Scigrip®, and others. The company sells its products through the wholesale and retail channels to a diverse base of customers across the globe with manufacturing operations in the U.S., the U.K., and China.

 George Moore and St. Martin will continue to serve as executive chairman and CEO of IPS, respectively.

"George Sherman and George Moore are highly accomplished industrial leaders, and they have continued their impressive track record of value creation at IPS. The company is a world-class manufacturer with leadership positions across its key product categories and stands to benefit from strong market tailwinds in its attractive end markets," said Steven Silver, global co-head of private equity and senior managing director at Centerbridge.

IPS has been owned since 2017 by Cypress, a diversified industrial holding company established by former Danaher Corporation CEO George Sherman. Under the leadership of Sherman, Moore, and St. Martin, IPS has deployed a version of the Danaher Business System, a holistic operating model through which strategy, operations, and financial performance are managed. Several significant shareholders of Cypress, including the Sherman family and Shumway Capital, have agreed to continue as shareholders in IPS alongside Centerbridge.

"Over the years, we have partnered with outstanding executives who have used the Danaher Business System to drive outperformance. We believe George Moore, Dan St. Martin, and the IPS team are similarly poised to drive excellent performance through use of the business system and are excited to support the team during the next stage of the company's growth," said Conor Tochilin, managing director at Centerbridge.

BofA Securities and Credit Suisse served as financial advisors to IPS on the transaction. Morgan, Lewis & Bockius LLP served as legal counsel to IPS and Cypress. Jefferies served as lead financial advisor to Centerbridge. Jefferies and Credit Suisse provided financing for the transaction. Latham & Watkins LLP served as legal counsel to Centerbridge.