Steamist: The Benefits of a Long-Term View & Approach
In business, having a financial roadmap is more than a strategy, it’s a competitive advantage. At RAF, we invest in companies with enduring potential and a clear vision for defined long-term growth. Steamist, a leading manufacturer of steam generators for luxury residential bathrooms, is a prime example of how patience, partnership, and intentional strategic decision-making drive long-term results.
Chemistry Meets Opportunity: A Strategic Partnership
RAF’s investment criteria are grounded in three core principles: investing for the long term, forging meaningful partnerships, and doing business the right way. This approach made RAF an ideal partner for Jeff Noll and Jeff Carney, two plumbing industry executives who identified Steamist as an acquisition opportunity. After their corporate board passed on the deal, the duo engaged an M&A advisor who connected them with our firm. Shared values and strategic alignment led to a swift partnership, marking the beginning of a growth-focused chapter for Steamist.
The Timeline – A Look At Steamist’s Growth Since 2007
2007: A Transformative Year
Steamist quickly gained traction under its new leadership. In 2007, the company achieved record sales and earnings, driven by strategic equity investments. Amidst rebranding, they were searching for a larger manufacturing facility and reinforcing a commitment to growth, all while maintaining the company’s core focus on quality and distributor relationships.
2008: Resilience Amid Economic Disruption
The Great Recession challenged even the strongest market players. As the housing market declined, Steamist saw a sharp drop in revenue. However, RAF’s model, built on patient capital and lower leverage, enabled the business to weather the downturn without resorting to drastic cost-cutting measures. Backed by a portfolio-wide revolving credit facility, Steamist preserved its key assets and remained well-positioned for recovery.
2009–2011: Innovation and Long-Term Investing
Rather than pull back, RAF and Steamist doubled down on innovation. RAF Asia, our global sourcing and logistics division, played a key role in securing high quality components that Steamist traditionally imported. At the same time, Steamist reaffirmed its commitment to domestic manufacturing, relocating to a modern facility near its original site to retain its experienced workforce. The result was a stronger, more capable business, ready to scale.
2017–2020: Scaling Through Digital Innovation
As retail pricing pressures mounted, Steamist identified an opportunity to expand into new channels. The company launched EliteSteam, a simplified, lower-cost steam generator designed for the DIY homeowner. Supported by our equity firm, Steamist rapidly established an e-commerce foundation and expanded its digital marketing capabilities, enabling a successful direct-to-consumer (DTC) strategy.
This move reflected one of RAF’s signature portfolio strategies, unlocking value through digital transformation. Within three years, the DTC channel accounted for over 35% of the company’s revenue, driving higher margins while maintaining its legacy retail partnerships.
Beyond 2020: Strategic Exit, Enduring Results
Following a highly targeted process involving 50 strategic buyers and 150 private equity funds, Steamist was acquired by Masco Corporation (NYSE: MAS) in 2021. The outcome highlighted the power of our long-term approach. After nearly 15 years of ownership, Steamist delivered an internal rate of return (IRR) exceeding 20%. The investment illustrates what’s possible when long-term capital, experienced leadership, and operational discipline align.
Steamist’s journey reflects RAF’s core belief: lasting value is built over time. Through market cycles, strategic pivots, and innovation, RAF provided the support and flexibility necessary for sustained success.
Learn More About RAF
RAF Equity was founded 45+ years ago and acquires control positions in middle-market companies across a diverse set of industries. We maintain a long-term strategy focused on investing in businesses with strong management teams, a demonstrated history of business growth, and potential for acceleration, with EBITDA of $5-20 million.
