Portfolio Companies
The American Roller Company, headquartered in Union Grove, Wisconsin, is the leading provider of industrial rollers to the metals, converting, pulp and paper, nonwovens/textiles, graphic arts, and business machine markets.
CMA acquired controlling interest in American Roller in 2001, providing a solution for a second generation, family-owned business confronting estate-planning issues. CMA found the business attractive for investment due to:
- ARC’s market leading position in the outsourced maintenance services sector supplying industrial rollers to web-process manufacturers of thin-gauge metals, plastic film and paper
- Superior technology within its markets (e.g. proprietary heated roller – Thermalon)
- Solid fundamentals – diversity of customer and industry base, talented personnel employing technical expertise in delivering a consumable product, longstanding loyal customers which are world-class leaders in their respective fields
Add-on investment criteria:
- Proven products/processes, well-positioned in markets and/or key customers due to competitive advantages
- Technically engineered products or maintenance services for industrial plants
- Strong management desired, not required
- Revenue in excess of $5 million and located in North America
- Good technology and reputation for quality service
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Preferences:
- Businesses serving the converting, metals and paper industries
- Thermal-sprayed industrial coatings, in-plant or out
- Capability of handling large rollers or products
2003 Add-On Investment: American Roller acquired Champion Roller based in Rock Hill, South Carolina for the purpose of increasing the companies’ position in the southeastern United States. Champion contributed in-house core manufacturing capability and larger roll capacity while adding bowed and chilled rolls to the existing ARC line consisting of synthetic rubber, polyurethane, ceramic and metal matrix coatings, nylon, heated rollers, steel and composite cores and shafts for the converting, metals processing, office machine, graphic arts, pulp and paper and non-woven markets.
Pillar Induction Company, headquartered in Brookfield, Wisconsin, is a leading manufacturer of custom-engineered, induction melting and heat-treating equipment. Pillar systems and aftermarket services are essential to its customers succeeding in the global foundry and industrial equipment manufacturing markets.
CMA acquired controlling interest in Pillar in 2003, providing a solution for a retiring entrepreneur confronting estate-planning issues and requiring liquidity to recapitalize a family-investment holding company. CMA found the business attractive for investment due to:
- Characteristics fitting CMA’s target criteria: capital goods manufacturer with a substantial parts and service component, proprietary electrical engineering technology, impressive customer base and longstanding relationships.
- CMA and the new board of directors provided a leadership solution filling the void resulting from the founding owner’s retirement
- The world-class, ISO-certified plant facility in the US and the wholly-owned subsidiary in Shanghai, China positioned Pillar for long term revenue growth
- Committed, industry-experienced personnel passionate about maintaining the Pillar heritage of bringing advanced power electronics to its customers desiring to use induction technology to their competitive advantage
Add-on investment criteria:
- Market proven engineered products, well-positioned in regional or niche markets and/or key accounts due to demonstrable competitive advantages
- Coil-repair services (heating or melting)
- Strong management desired, not required
- Revenue in excess of $2 million
- Located in North America
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Preferences:
- Competency in power electronics and/or systems engineering
- Aftermarket parts component and service expertise
- Ability to source excess volume/production to Pillar-Shanghai facility
Plasma Coatings, Inc.
(Waterbury, CT) in the previous four decades
has developed a leading brand name in providing custom coatings
to the converting, paper and rubber industries. Plasma’s
service enhances the surface properties of production equipment
(e.g. drums, rollers, guide plates, vats) where controlling
resistance and abuse will provide better performance. Plasma also
provides on-site coating of extremely large rolls/equipment at
customers’ locations in the US and licenses its coating
formulas internationally.
CMA and the American Roller Company acquired controlling interest in Plasma Coatings in 2003, providing a liquidity event for three retiring shareholders, while co-investing with the Company President to forge a plan for long term growth. CMA found the business attractive for investment due to superior fundamentals:
- Leader within its market niche, possessing recognized brand name for high quality products and service and aligning with the American Roller Company long term business strategy
- Technical expertise in processing and new product development
- Strong, loyal relationships within blue-chip customer base
- 25+ year unbroken chain of profitability and steady revenue growth
Add-on investment criteria:
- Proven products/processes, well-positioned in markets and/or key customers due to competitive technology and reputation for quality service
- Serves key industries (converting, metals, paper, chemical, food and pharmaceutical) with higher value-added products
- High cross-selling potential for both coatings and rollers
- Strong management desired, not required
- Revenue in excess of $2 million and located in North America
- Operating capacity sufficient to handle larger, heavier rollers utilized by the industries of interest
ABP Induction Systems
GmbH (ABP), headquartered in Dortmund, Germany (formerly ABB
Foundry Systems) is the world’s leading manufacturer of
high-throughput induction melting, pouring and heating equipment.
This leadership position results from the 1988 combination of two
industry pioneers: Asea, which built the first channel induction
furnace in 1903 and Brown Boveri (BBC), which in 1929 established
its furnace business in Dortmund. Today, ABP continues the
heritage of the original businesses which began over 100 years
ago, providing a competitive edge to its customers around the
globe with highly-reliable, state-of-the-art
technology.
CMA acquired controlling interest in ABP in 2005, providing a solution for an $18 billion annual revenue public company seeking to divest a non-strategic business unit. CMA found the business attractive for investment due to:
- Characteristics fitting CMA’s target criteria: capital goods manufacturer with an aftermarket parts and service component, proprietary electrical engineering technology, impressive customer base and longstanding relationships, #1 or #2 position in key markets
- CMA was uniquely qualified to establish ABP as an autonomous company in five countries (Germany, Sweden, Brazil, Thailand and the USA), replacing necessary corporate support services while enabling senior management to focus on running the business with a liberating sense of entrepreneurship
- Strategic alignment with CMA’s Pillar investment is substantial. Combined, the ABP/Pillar induction businesses reach all key markets
- Committed, industry-experienced personnel passionate about maintaining the ABP heritage of bringing advanced technology and superior service to a global marketplace
Add-on investment criteria:
- Market proven engineered products, well-positioned in regional or niche markets and/or key accounts due to demonstrable competitive advantages
- Coil-repair services (melting or heating)
- Strong management desired, not required
- Revenue exceeding $2 million, located in key casting and forging markets
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Preferences:
- Aftermarket service operation with outstanding reputation
- Cross-selling equipment/service opportunities with ABP and Pillar
2006 Add-On Investment: – ABP Induction acquired the Pillar-related aftermarket parts and service business of Engefor Eletronica, based in Sao Paulo, Brazil to better serve South American markets. Engefor has enjoyed a well earned reputation for superior service and quality manufacturing of Pillar melting systems. The Engefor transaction contributed engineering, sales and technical service talent while substantially increasing the installed base of equipment requiring periodic service. The Brazil market is a strategic priority of ABP/Pillar as further evidenced by the new plant constructed in Atibaia which houses all sales, engineering, manufacturing and service functions.
2007 Add-On Investment: – ABP Induction Systems Pvt Ltd was formed in India to service this robust melting market with aftermarket services, systems sales and engineering support and will begin manufacturing operations within a new plant facility on the outskirts of the Vadodara in July, 2007.