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:
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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
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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
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Revenue in excess of $5
million and located in North America
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Good technology and reputation
for quality service
-
Preferences:
-
Businesses serving the
converting, metals and paper industries
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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
-
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
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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
-
Preferences:
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.
News/Press Releases
