Marc Climatic Controls Inc. and the Birdwell Co. Merge and Recapitalize

Air Conditioning giants Marc Climatic Controls Inc. (“Marc”) and The Birdwell Co. (“Birdwell”) have merged and recapitalized to create the leading manufacturer of explosion proof HVAC units in the world.

Dallas, TX, December 10, 2009 --( Marc Climatic Controls Inc. (“Marc”) and The Birdwell Co. (“Birdwell”) have merged and recapitalized to create the leading manufacturer of explosion proof HVAC units in the world.

Each company has been a leader in its industry for many years with Birdwell having been established in 1959 and Marc in 1978. They both specialize in the design and manufacture of industrial air conditioning, heating, pressurization, and air filtration products and systems predominantly for the refining, petrochemical, offshore oil and gas, and other related industries. Both companies reported record sales for fiscal 2009 and positive earning signs are expected for the future. The merger of the two companies will provide the industry with an unmatched capability to meet customer needs.

Marc founder John W. Kinsel, Jr. will remain with the new company as president and CEO, and a member of the board of directors. Birdwell founder Gaylon Birdwell is retiring from active management but will serve on the board of directors of the combined entities. Current Birdwell CFO, Rebecca L. Busker, will serve as CFO for the combined companies.

“It’s the right move at the right time,” Kinsel says. “For the employees of both companies, this merger provides value, strength and growth. For our joint customers, it brings superior product design, selection, service and delivery. We look forward to combining the best of both of these great companies to service the ever increasing needs of the industry.”

“Each of the companies’ employees possesses specific areas of expertise. By utilizing this knowledge, maintaining the integrity of each product line, and eliminating duplication of effort, the whole will become greater than the sum of their parts,” said Gaylon Birdwell.

Equity funding for the merger and recapitalization was provided by a seasoned group of investors with a depth of experience in the HVAC and service industries. These investors include principals of Keyes Capital, Llano Partners, Midtown Group as well as Marc founder John Kinsel. The Chairman of Keyes Capital is James H. Keyes, former Chairman and CEO of Johnson Controls, Inc. The principal partner of Llano Partners is Hughes Abell, who has operating experience in several industries and who previously served on the board of Goodman Manufacturing, and Tom Borders, Chairman of Midtown Group, co-founded Borders Books.

According to Tim Keyes, CEO of Keyes Capital and Chairman of the merged companies, “the deal signifies a major leadership change in the specialized industrial air conditioning industry. We have united the best assets of these two strong companies and have established a leadership position for years to come. As we look well into the future, this new company will be poised to deliver best-in-class products and service to its customers.”

Susan Harriman brokered this deal and is now with Dallas-based WFG Investments, Inc, member FINRA/SIPC, a subsidiary of Williams Financial Group. Debt funding for the recapitalization was provided by Sterling Bank, the current lender to Marc.

Marc Climatic Controls Inc
Amy Power