The Rise Companies, the investment firm founded by eastern North Carolina investor Harry Smith, bought R&D Specialties, a 40-year-old family business based in Odessa, Texas. It’s the first acquisition in the Lone Star State by Rise, which also owns four companies in North Carolina and one in Florida. Terms weren’t disclosed.
R&D is a systems integrator whose products include making control panels used to protect electrical equipment in harsh conditions such as oil and gas fields.
“R&D has a state-of-the-art facility, excellent industry knowledge, and world-class design and engineering capabilities,” Susan Rothecker, CEO of The Rise Companies, said via a news release. “Their dedication to quality and business innovation aligns perfectly with our vision. Together, we will be able to accelerate our growth and provide even greater value to our customers in all market sectors.”
Rise’s corporate strategy is to add one to three companies in the Southeast annually, with the goal of reaching $500 million in annual revenue by the end of 2025, Smith said.
The late Roy Howell founded R&D Specialties in 1983, one of several businesses he owned tied to the oil and gas and water treatment industries, according to the company’s website. In 2010, he sold the business to his children, who have operated it since then.
Odessa is in west Texas’ Permian Basin, one of the world’s most important oil-and-gas production regions.
Existing management will continue running R&D. “Together we will focus on advancing technology and expanding our reach in the industry,” Smith said.
Rise was formed in 2019. Its portfolio companies include sheet metal fabricator SMT of Raleigh; Nashville, N.C.-based Asterra Labs, which makes CBD products; metal works operator Oak Ridge Industries of Washington, N.C.; Greenville-based Pitt Electric, a commercial electric services company; and Fort Myers, Florida-based Fortune Electrical Construction.
Rise previously sold its Pamlico Air filter business to Mann+Hummel, a German industrial products multinational.