Levine Leichtman Capital Partners has acquired USA Industries from Sky Island Capital, partnering with management to back the next phase of growth at the industrial products manufacturer.

The Los Angeles-based private equity firm completed the acquisition alongside the existing leadership team, with USA Industries continuing to be led by chief executive Justin Watts. 

Founded in 1982 and headquartered in Houston, the company manufactures industrial flow control and testing products, including piping isolation tools, tube plugs, and related devices. It serves customers across pharmaceutical, industrial, refinery, and chemical end markets.

Levine Leichtman said the investment reflects confidence in the company’s trajectory and its role as a critical supplier. Micah Levin, Partner at the firm, said: “We are excited to partner with Justin and the existing management team, who have driven impressive growth of USA Industries. The Company has proven to be an increasingly valuable supplier to its loyal customer base. Together we can build on this momentum and market position to continue this compelling growth trend.”

The deal aligns with Levine Leichtman’s focus on engineered products businesses with strong fundamentals and expansion potential. Andrew Alexander, Managing Director at the firm, said USA Industries “provides essential, must-have products integral to the operations of high value applications,” adding that the company is “well aligned to our engineered products sector investment criteria and has multiple attractive vectors for future growth.” 

From management’s perspective, the transaction is positioned as a platform for continued organic and acquisitive expansion. Watts said: “Our partnership with LLCP is an exciting milestone for USA Industries. They offer valuable expertise in supporting and successfully growing businesses like ours, as well as a shared vision for the future and a collaborative approach.” He added that the company’s priorities remain “driving both organic growth and M&A by providing a best-in-class solution of products and services to our valued customers.”

USA Industries represents a platform investment for Levine Leichtman Capital Partners Lower Middle Market Fund III. 

Honigman advised Levine Leichtman on the transaction, while Churchill provided debt financing. Piper Sandler acted as exclusive financial advisor to USA Industries, with Jones Day serving as legal counsel.

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