Rotating Machinery Services, Inc. (RMS) Company Profile

Background

Founded in 1998, Rotating Machinery Services, Inc. (RMS) is a leading provider of aftermarket engineering and services specializing in turbomachinery. Headquartered in Bethlehem, Pennsylvania, RMS offers a comprehensive suite of services, including reliability improvements, performance optimization, repair, and component replacement for axial and centrifugal compressors, expanders, power turbines, and steam turbines. The company's mission is to redefine the aftermarket turbomachinery business by delivering superior parts, services, and expertise to a diverse, global customer base across industries such as energy, petrochemical, food & beverage, and steel.

Key Strategic Focus

RMS's strategic focus centers on providing comprehensive aftermarket solutions for large, highly engineered rotating machinery. The company emphasizes:

Engineering Excellence: Leveraging over 950 years of combined engineering experience, with each engineer averaging over 28 years in the field.

Comprehensive Service Offerings: Delivering a full suite of services, including parts manufacturing, component repair, engineering, metrology, and field services for both OEM and non-OEM equipment.

Global Reach: Operating out of nine facilities to serve a diverse, global customer base across various end markets.

Quality Commitment: Achieving ISO 9001:2015 certification at key locations, underscoring a commitment to delivering consistent, high-quality products and services.

Financials and Funding

RMS has demonstrated financial stability and growth through strategic investments and acquisitions. Notable financial milestones include:

June 2019: Acquisition by Cortec Group, a New York-based private equity firm specializing in middle-market specialty services, consumer, healthcare, and distribution businesses.

January 2025: Acquisition by Arcline Investment Management, a growth-oriented private equity firm with $9.1 billion in cumulative capital commitments. This partnership aims to support RMS's next chapter of growth and expansion.

Pipeline Development

RMS continually enhances its service offerings and capabilities through strategic acquisitions and partnerships:

October 2021: Acquisition of Axis Technical Services, expanding field service offerings with seasoned technical field advisors and rotating equipment planners.

July 2022: Acquisition of Breaux Machine Works, enhancing machining capabilities and integrating industry-leading skills into RMS's portfolio.

April 2023: Partnership with Mitsubishi Heavy Industries Compressor International Corporation (MCO-I) to enhance shop services, including critical rotating equipment inspections and repairs.

May 2023: Acquisition of Origin Metrology Group, integrating advanced metrology solutions for rotating equipment repair and installation.

November 2023: Acquisition of Plant Process Machine Works LLC (PPMW), expanding capabilities in reciprocating compressors.

November 2023: Acquisition of Blading Services Unlimited (BSU), enhancing precision engineering and turbine blade manufacturing capabilities.

Technological Platform and Innovation

RMS differentiates itself through proprietary technologies and innovative methodologies:

Advanced Engineering Tools: Utilizing cutting-edge technology combined with extensive engineering experience to deliver superior results.

Metrology Solutions: Incorporating advanced metrology capabilities through the acquisition of Origin Metrology Group, enabling more precise and faster turnarounds powered by digital technology.

Comprehensive Machining Capabilities: Enhancing machining capabilities through the acquisition of Breaux Machine Works, integrating industry-leading skills and infrastructure into RMS's portfolio.

Leadership Team

RMS's leadership team comprises experienced professionals dedicated to advancing the company's mission:

John Bartos: Chief Executive Officer

Jeffrey Ellis: Chief Financial Officer

Kathy Ehasz: Vice President of Human Resources

Kraig Simpson: Vice President of Technology

Mark Koerner: Vice President - AC Compressor Products

Robert Tabb: General Manager

Leadership Changes

In January 2025, RMS announced its acquisition by Arcline Investment Management. John Bartos, CEO of RMS, emphasized that Arcline's deep industry and business model experience and focus on growth align perfectly with RMS's management team, employees, and customers.

Competitor Profile

Market Insights and Dynamics

The turbomachinery aftermarket industry is characterized by a diverse range of service providers, from large multinational corporations to specialized engineering firms. Key market dynamics include:

Technological Advancements: Continuous innovation in engineering and manufacturing processes.

Globalization: Expansion of service capabilities to meet the needs of a global customer base.

Quality Standards: Emphasis on certifications and quality assurance to meet industry standards.

Competitor Analysis

Key competitors in the turbomachinery services sector include:

Turbocam: Specializes in the manufacturing of turbomachinery components, offering services similar to RMS.

Concepts NREC: Provides engineering services and software solutions for turbomachinery design and analysis.

Peter Brotherhood: Offers design and manufacturing of steam turbines and other rotating equipment.

Strategic Collaborations and Partnerships

RMS has formed significant collaborations to strengthen its market position:

Mitsubishi Heavy Industries Compressor International Corporation (MCO-I): Partnership to enhance shop services, including critical rotating equipment inspections and repairs.

Origin Metrology Group: Acquisition to integrate advanced metrology solutions for rotating equipment repair and installation.

Blading Services Unlimited (BSU): Acquisition to enhance precision engineering and turbine blade manufacturing capabilities.

Operational Insights

RMS's strategic considerations include:

Market Position: Establishing a strong presence in the turbomachinery aftermarket industry through comprehensive service offerings and strategic acquisitions.

Competitive Advantages: Leveraging extensive engineering experience, advanced technological capabilities, and a commitment to quality to differentiate from competitors.