M&A Deal Summary

American Capital and Compass Diversified Acquire CPM

On February 21, 2003, private equity firms American Capital and Compass Diversified acquired machinery company CPM from Compass Diversified

Acquisition Highlights
  • This is American Capital’s 9th and Compass Diversified’s 2nd transaction in the Machinery sector.
  • This is American Capital’s 75th and Compass Diversified’s 3rd transaction in the United States.
  • This is American Capital’s 2nd and Compass Diversified’s 2nd transaction in Iowa.
Investment Fate
  • CPM was sold to a consortium of financial buyers in 2003.

M&A Deal Summary

Date 2003-02-21
Target CPM
Sector Machinery
Buyer(s) American Capital
Compass Diversified
Sellers(s) Compass Diversified
Deal Type Recapitalization

Target

CPM

Waterloo, Iowa, United States
CPM is a supplier of process equipment used for oilseed processing and animal feed production. The Company's product offering includes a complete line of pellet mills, flaking mills, roller mills, hammermills, grinders, process control systems, and micro and minor ingredient scaling systems, as well as a broad range of ancillary equipment. The Company's products are also used in other industrial applications, including ethanol production, wood waste pelleting, refuse-derived fuel applications, other waste processing and recycling, and general grinding and agglomeration of a variety of materials. CPM was formed in 1883 and is based in Waterloo, Iowa.

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Buyer(S) 2

Buyer

American Capital


Category Private Equity Firm
Founded 1997
PE ASSETS 22.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

American Capital was a publicly traded buyout and mezzanine investment firm. American Capital invested in buyouts, growth capital financings, acquistion financings, and recapitalizations. The Firm looked to finance businesses with at least $4 million in EBITDA and valued between $20 and $500 million. American Capital ws a generalist firm with broad interest in traditional industries such as manufacturing, distribution, and services. American Capital's European investment affiliate is European Capital. European Capital looked to invest $10 to $600 million of equity, mezzanine, and/or senior debt in similar opportunities across Europe. American Capital was formed in 1997 and in January 2017, merged with Ares Capital Management.


DEAL STATS #
Overall 77 of 265
Sector (Machinery) 9 of 10
Type (Recapitalization) 5 of 21
State (Iowa) 2 of 3
Country (United States) 75 of 253
Year (2003) 3 of 28
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-02-04 Technical Concepts

Winchester, Virginia, United States

Technical Concepts, LLC is a designer and marketer of 'touch-free' automated products and other related products and services for hygiene and odor control in 'away from home' restrooms. An inventing, manufacturing and commercializing reliable, cost-effective product systems designed to meet the hygiene and touch free needs in washrooms and at washstations.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-03-03 Visador Holding

Marion, Virginia, United States

Manufacturer of Custom Wooden Stair Parts.

Buy -
Buyer

Compass Diversified

Westport, Connecticut, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 3.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Compass Diversified is a holding company focused on acquiring controlling interests in profitable small to middle-market businesses in attractive niche industries. Compass generally looks for US-based companies with proven management in place, low technological and/or product obsolescence risk, diverse customers, and EBITDA of at least $20 million. Compass Diversified was founded in 1998 and is headquartered in Westport, Connecticut.


DEAL STATS #
Overall 3 of 25
Sector (Machinery) 2 of 3
Type (Recapitalization) 1 of 1
State (Iowa) 2 of 2
Country (United States) 3 of 24
Year (2003) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-01-01 Au Bon Pain

Boston, Massachusetts, United States

Au Bon Pain is a bakery cafe operator with company-owned and franchised stores operating globally. The Company's menu includes freshly baked goods, made-to-order sandwiches, soups, and cafe beverages. Au Bon Pain was founded in 1978 and is based in Boston, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-01 CPM

Waterloo, Iowa, United States

CPM is a supplier of process equipment used for oilseed processing and animal feed production. The Company's product offering includes a complete line of pellet mills, flaking mills, roller mills, hammermills, grinders, process control systems, and micro and minor ingredient scaling systems, as well as a broad range of ancillary equipment. The Company's products are also used in other industrial applications, including ethanol production, wood waste pelleting, refuse-derived fuel applications, other waste processing and recycling, and general grinding and agglomeration of a variety of materials. CPM was formed in 1883 and is based in Waterloo, Iowa.

Sell -

Seller(S) 1

SELLER

Compass Diversified

Westport, Connecticut, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 3.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Compass Diversified is a holding company focused on acquiring controlling interests in profitable small to middle-market businesses in attractive niche industries. Compass generally looks for US-based companies with proven management in place, low technological and/or product obsolescence risk, diverse customers, and EBITDA of at least $20 million. Compass Diversified was founded in 1998 and is headquartered in Westport, Connecticut.


DEAL STATS #
Overall 1 of 16
Sector (Machinery) 1 of 3
Type (Recapitalization) 1 of 1
State (Iowa) 1 of 2
Country (United States) 1 of 15
Year (2003) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-01-01 Au Bon Pain

Boston, Massachusetts, United States

Au Bon Pain is a bakery cafe operator with company-owned and franchised stores operating globally. The Company's menu includes freshly baked goods, made-to-order sandwiches, soups, and cafe beverages. Au Bon Pain was founded in 1978 and is based in Boston, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-01 CPM

Waterloo, Iowa, United States

CPM is a supplier of process equipment used for oilseed processing and animal feed production. The Company's product offering includes a complete line of pellet mills, flaking mills, roller mills, hammermills, grinders, process control systems, and micro and minor ingredient scaling systems, as well as a broad range of ancillary equipment. The Company's products are also used in other industrial applications, including ethanol production, wood waste pelleting, refuse-derived fuel applications, other waste processing and recycling, and general grinding and agglomeration of a variety of materials. CPM was formed in 1883 and is based in Waterloo, Iowa.

Sell -