M&A Deal Summary

Begel Industries, Guard Hill Holdings and Aldine Capital Partners Acquire Stainless Foundry & Engineering

On October 18, 2007, Begel Industries, private equity firm Guard Hill Holdings and mezzanine finance firm Aldine Capital Partners acquired manufacturer Stainless Foundry & Engineering

Acquisition Highlights
  • This is Begel Industries’ 3rd, Guard Hill Holdings’ 3rd and Aldine Capital Partners’ 1st transaction in the Manufacturing sector.
  • This is Begel Industries’ 4th, Guard Hill Holdings’ 3rd and Aldine Capital Partners’ 4th transaction in the United States.
  • This is Begel Industries’ 2nd, Guard Hill Holdings’ 2nd and Aldine Capital Partners’ 1st transaction in Wisconsin.

M&A Deal Summary

Date 2007-10-18
Target Stainless Foundry & Engineering
Sector Manufacturing
Buyer(s) Begel Industries
Guard Hill Holdings
Aldine Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

Stainless Foundry & Engineering

Milwaukee, Wisconsin, United States
Stainless Foundry & Engineering is a provider of complex sand and investment castings of stainless steel and other high alloy compositions in support of customers in the chemical, marine, power generation, general industrial, food & dairy, and appliance industries. Stainless Foundry & Engineering was founded in 1946 and is based in Milwaukee, Wisconsin.

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Buyer(S) 3

Buyer

Begel Industries

Chicago, Illinois, United States

Category Private Equity Firm
Founded 1989
Size Middle-Market
Type Sector Focused
DESCRIPTION

Begel Industries (TMB Industries) is a private equity firm focused on acquiring North American middle-market industrial businesses. Areas of interest include general industrial/manufacturing, automotive, medium/heavy-duty truck, painting/coating, and engineered products. Target businesses generally have revenues of $30 to $500 million. Begel prefers companies with proven management, well-positioned products, and strong customer relationships. TMB was formed in 1989 and is based in Chicago, Illinois.


DEAL STATS #
Overall 4 of 5
Sector: Manufacturing M&A 3 of 4
Type: Buyout (LBO, MBO, MBI) M&A Deals 2 of 3
State: Wisconsin M&A 2 of 2
Country: United States M&A 4 of 5
Year: 2007 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-08 Richland Center Foundry Company

Richland Center, Wisconsin, United States

Richland Center Foundry is a supplier of large complex ductile and grey iron castings in support of industrial customers that manufacture mining and construction equipment, locomotive powertrains, pumping equipment, stationary diesel engines and power generation systems. Richland Center?s manufacturing operations and headquarters are located in Richland Center, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-02-06 Prospect Foundry

Minneapolis, Minnesota, United States

Prospect Foundry is a provider of complex gray, ductile and high-alloyed iron castings for construction equipment, mining equipment, agricultural equipment and transportation-related applications. Prospect Foundry was formed in 1936 and is based in Minneapolis, Minnesota.

Buy -
Buyer

Guard Hill Holdings

Bedford, New York, United States

Category Private Equity Firm
Founded 1989
PE ASSETS 50M USD
Size Small
Type Sector Focused
DESCRIPTION

Guard Hill Holdings is a private equity firm focused on controlling investments in industrial manufacturing businesses across the US. Guard Hill targets companies generating $25 to $250 million in revenues (profitability not required) that demonstrate significant growth potential, either internally or through acquisitions. The Firm seeks corporate divestiture situations, turnaround situations, as well as business owners seeking liquidity options. Guard Hill Holdings is based in Bedford, New York.


DEAL STATS #
Overall 3 of 4
Sector: Manufacturing M&A 3 of 4
Type: Buyout (LBO, MBO, MBI) M&A Deals 2 of 3
State: Wisconsin M&A 2 of 2
Country: United States M&A 3 of 4
Year: 2007 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-03-08 Richland Center Foundry Company

Richland Center, Wisconsin, United States

Richland Center Foundry is a supplier of large complex ductile and grey iron castings in support of industrial customers that manufacture mining and construction equipment, locomotive powertrains, pumping equipment, stationary diesel engines and power generation systems. Richland Center?s manufacturing operations and headquarters are located in Richland Center, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-02-06 Prospect Foundry

Minneapolis, Minnesota, United States

Prospect Foundry is a provider of complex gray, ductile and high-alloyed iron castings for construction equipment, mining equipment, agricultural equipment and transportation-related applications. Prospect Foundry was formed in 1936 and is based in Minneapolis, Minnesota.

Buy -
Buyer

Aldine Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2005
PE ASSETS 750M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Aldine Capital Partners is a mezzanine investment firm that provides mezzanine and junior capital financing to lower middle-market companies generating sales of at least $10 million and at least $2 million in EBITDA. Aldine invests in the range of $5 to $25 million per transaction. Types of transactions include management buyouts, acquisition financings, shareholder liquidity events, recapitalizations, and growth financings of smaller middle-market companies. Aldine will consider investments across the United States, but has a primary focus on opportunities in the Midwest. The Firm will not consider investments in start-ups, turnarounds, real estate, insurance, banking, and oil/gas. Aldine Capital was formed in 2005 and is based in Chicago, Illinois.


DEAL STATS #
Overall 4 of 74
Sector: Manufacturing M&A 1 of 14
Type: Buyout (LBO, MBO, MBI) M&A Deals 2 of 27
State: Wisconsin M&A 1 of 6
Country: United States M&A 4 of 74
Year: 2007 M&A 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-29 K&H Pet Products

Colorado Springs, Colorado, United States

K&H Manufacturing LLC is a producer of premium pet supplies and the largest marketer of heated pet products in the country. K&H sells branded pet products under the K&H and K&H Pets brands. K&H produces innovative pet products that span several categories, including dog and cat, small animal, and farm and ranch. K&H Manufacturing was founded in 1998 and is based in Colorado Springs, Colorado.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-12-01 LaCrosse Forage & Turf Seed

La Crosse, Wisconsin, United States

LaCrosse is engaged in the testing, selection and wholesale distribution of seeds. The Company markets its proprietary alfalfa and other forage products under the "Farm Science Genetics ® " brand, while its turf seed products are marketed under the "La Crosse" and "Palmer's Pride ® " labels

Buy -