Sky Island Capital Acquires USA Industries

Jan 18, 2022

Dallas, Texas – January 18, 2022 – Sky Island Capital (“Sky Island”), a Dallas-based lower middle market private equity firm, is excited to announce that it has made a majority investment in USA Industries (“USA” or the “Company”) alongside the second-generation founding family. Headquartered in South Houston, Texas, USA is a leading manufacturer, supplier, and rental provider of piping isolation and testing products, tube plugs, flow measurement orifice plates, and heat exchanger tools to the refining, petrochemical, chemical, industrial, OEM, and engineering, procurement, and construction end markets.

USA’s product offering stems from more than 40 years of developing and enhancing its product designs, which are mission critical to repair, maintenance, and capital projects for the industrial process sector, where safety and reliability are paramount. With numerous patented technologies, USA designs, manufactures, and supplies premium piping isolation and testing products, tube plugs, orifice plates, heat exchanger tools and much more that meet or exceed ISO 9001:2015 manufacturing standards.

“We are thrilled to enter into this partnership with the Sky Island team. Sky Island’s extensive operational and financial resources will allow us to accelerate our growth plan and better serve our customers,” remarked Tracy Sue, CEO of USA.

Jack Waterstreet, Sky Island Managing Partner, stated, “USA has a reputation for providing high quality innovative products and best-in-class service to its customers. The Company is uniquely positioned in its category with engineering know-how and research & design capabilities driving innovation in its growing product portfolio, delivering cutting-edge technology such as the Snap-It® mechanical tube plugs product line and more recently the GripSafe® isolation and testing plug line that raises the bar for safety and reliability in the industry. With Sky Island’s support, we believe the Company is exceptionally well-positioned to continue expanding its product and solutions offering to best serve its customer base.”

USA is Sky Island’s third platform investment in its inaugural fund.

About Sky Island Capital

Sky Island Capital ( is a lower middle market private equity firm based in Dallas, Texas that makes control investments in strategically viable North American manufacturing companies that exhibit transformational upside potential. Sky Island focuses on situations where it can draw upon its deep operational experience to support senior management in driving significant value creation through operational and strategic partnership, including add-on acquisitions. Sky Island is comfortable with and has a history of executing transactions with complex dynamics, including family-owned businesses, management buyouts, corporate carve-outs, public to privates, lender-controlled businesses, and other special situations.

About USA Industries

USA Industries ( is a manufacturer of innovative piping maintenance products, serving blue-chip refining, petrochemical, chemical, industrial, OEM, and engineering, procurement, and construction customers. The Company is headquartered in South Houston, Texas and maintains a diverse customer base throughout North America and internationally. GripSafe® is a patented, high pressure isolation and testing plug that utilizes Gritlock™ Wedge Surface Coating and high performance Tri-Ply™ Seals to instantly secure the product and provide superior self-gripping performance without damaging the surface of the pipe. Snap It® Mechanical Tube Plugs are cost-effective and reliable tube plugs that can be installed without welding and in 80% less time, avoid tube sheet damage completely, and are rated at 1,000 pounds per square inch differential (psid).

For more information please contact Jack Waterstreet or visit the website listed below:

Jack Waterstreet

Managing Partner