Vincent Volpe, Ex Dresser-Rand CEO, Re-Enters the Market Backed by Bluewater Launching a New Compressor Technologies Venture: Fox Innovation & Technologies
Immediately Acquires Texas-Based Revak
- Fox Innovation & Technologies Inc. (FIT) will provide a unique solution set in the compressor and rotating equipment services aftermarket by offering world-class engineering and advanced technology capabilities to meet its clients’ aftermarket requirements.
- FIT’s value proposition will be two-fold: 1) to combine world class technology to maximize efficiency, with an operational excellence model that compresses cycle times to less than 50% of today’s present standard for Compressor Revamps and 2) to build out a world-wide services infrastructure over time to ensure that the Company is present locally, with a solution set that will meet its clients ongoing operating needs for parts, field services and repairs.
- Acquisition of Texas-based Revak fires the starting gun on acquisitive strategy, with other potential targets already identified.
- Vincent Volpe, CEO of Fox Innovation & Technologies, said: “There is an opportunity to do something different in the compressor market. We have a clear strategy that will allow us to service industrial companies’ existing assets to increase efficiency, thereby reducing costs and the global carbon footprint of industrial processes.”
- “It is our belief that successful execution of this strategy in the coming years will affect the reduction in equivalent emissions of over 1 million automobiles annually. Over the past 18 months we have built a leadership and technology team with over 600 years of combined experience in high-speed rotating equipment. Our development platform is designed and now ready for launch.”
- “With the acquisition of REVAK we now have the needed manufacturing footprint to build the equipment in an ISO certified facility, which also supports a well-established, mid-sized aftermarket parts, services and repairs business. In short, the core building blocks of this two-legged strategy are now in place. Prospectively, we must now execute in both segments. We have the tools, the financial backing, and most importantly, the people, to make this happen.”
Vincent Volpe, the former CEO of Dresser-Rand, and international energy specialist private equity firm Bluewater, can today announce that together they have launched a new venture, Fox Innovation & Technologies (FIT), as a platform to service the energy and industrial compressor and rotating equipment market.
Vincent served as the company CEO of Dresser-Rand for the last 15 years of his 34-year tenure, which included an IPO in 2005. Over the subsequent 10 years the Company’s stock (NYSE:DRC) appreciated by over 350% and led to the subsequent $7.6bn acquisition by Siemens in 2015.
Fox Innovation & Technologies (FIT)
The Company will be led by Vincent Volpe, as CEO, who is assembling a team comprising leading experts in the compressor and rotating equipment fields and is backed, and majority owned, by Bluewater.
FIT will target the after-sales segment of the compressor and other rotating equipment markets, helping to improve, modify and service existing compressors and turbines that can result in immediate improvements in efficiency and reduction in operating costs.
FIT has developed a proprietary technology and design approach to produce impellers and the associated gas flow path that focuses on optimizing and maximizing the efficiency and operating range of in-service equipment and mitigating performance degradation due to common variances in operating conditions or new processes introduced over the life of a gas field. FIT’s concept is to produce a “cartridge” that can fit in any OEM’s existing compressor casing with a simple bespoke design process using internal detailed criteria sources from end-user clients’ files.
FIT has the capabilities to do its own design work and manufacture the cartridge to be inserted in the existing casing when the equipment is made available during planned turnaround and maintenance periods. The efficiency, cycle time and OEM-agnostic ability to work on any of its target customers’ equipment, supported by the local ongoing operational support, will make this attractive to members of clients’ C-Suites, focused on sustainability and the environment, as well as operations leaders, focused on reliable production at the lowest possible operating cost.
The addressable market, which includes gas compressors, gas turbines and steam turbines, is worth approximately $20 billion.
FIT’s first major act is the acquisition of Texas-based Revak Keene Turbomachinery (Revak), which will serve as a catalyst for this new platform. Founded in 1981, Revak specializes in remanufacturing, upgrading, and re- rating steam turbines, pumps, gears, compressors, and complete steam turbine systems for industrial and energy sector customers.
Revak’s 350,000 square foot headquarters in Houston provides a strategic presence and manufacturing base from which FIT can grow by leveraging its engineering workshop expertise and world-class field service capabilities.
FIT says that the acquisition of Revak is the first deal in what it expects to be a busy twelve months in terms of acquisitions. The Company’s leadership team and Bluewater have already identified potential acquisition targets as it looks to build an international-scale platform to take on the rotating equipment and compressor market.
Tom Sikorski, Founding Partner at Bluewater, previously worked closely with Vincent Volpe having invested in Dresser-Rand, says: “We are delighted to have the chance to work again with Vincent Volpe and his team. Our experience with them at Dresser-Rand was fantastic and the potential here is even better. There is a huge opportunity in a large addressable market to start a focused compressor efficiency strategy, and this team is the best in class in that field.”
Vincent Volpe adds: “When we started to think about developing this platform a couple of years ago, I called Tom. We first met Tom back in 2004 when we worked together on the Dresser-Rand LBO and subsequent IPO. Tom brings credibility, knowledge and integrity to this partnership, and it is for this reason we approached the Bluewater team. Over the past 18 months we have worked together copiously and are now ready to move forward. The REVAK acquisition is of clear strategic importance, and we are pleased to welcome Paul DeWeese (CEO), and the entire REVAK team to our new company. I am sure that together we are going to build something very special.
Marcello Stroppa, Director at Bluewater, added: “We are very excited to work with Vincent and team to build this new platform that will disrupt the rotating equipment services market. We have closed on the first strategic acquisition and have a pipeline of other highly actionable opportunities that will accelerate FIT’s growth. We look forward to the journey ahead and helping FIT become a global leader in its field.”