Industrial

Customized Solutions. Superior Execution.
Unparalleled Results.

Western Reserve’s industrial practice has historically been the firm’s most active, as over half of the firm’s transaction history has been in the industrial sector.  Most recently, Western Reserve has seen an increased level of interest and transaction activity among strategic parties, who leveraged cost cutting initiatives to build considerable cash balances during the downturn and are now eager to grow revenue through acquisition.  The professionals of Western Reserve’s industrial practice bring to bear an extensive and successful track record in the industrial sector, having completed more than 285 transactions worth over $35 billion in the following sectors:

BUILDING PRODUCTS AND MATERIALS

  • Aggregates and Construction Materials
  • Building Products

CAPITAL GOODS

  • Construction and Farm Machinery and Heavy Trucks
  • Industrial Machinery
  • Process and Flow Control Equipment and Components

CHEMICALS, PLASTICS AND RUBBER

  • Coatings and Sealants
  • Commodity and Specialty Chemicals
  • Plastic and Synthetic Resins
  • Specialty Materials

ELECTRIC AND ELECTRONIC COMPONENTS

  • Electrical Components and Equipment
  • Electronic Manufacturing Services
  • Power Generation Equipment

ENERGY, POWER AND INFRASTRUCTURE

  • Construction and Utility Services
  • Energy Equipment and Services

METALS

  • Fabricated Structural Metal Products
  • Iron and Steel Forgings and Foundries
  • Rolling, Drawing and Extruding of Diversified Metals

GENERAL INDUSTRIAL

  • Aerospace and Defense
  • Automotive
  • Containers and Packaging
  • Distribution
  • Environmental Services
  • Transportation and Logistics

arrow image Key Contacts

Recent Industrial transactions

  • Cimarron2

    Cimarron Central LLC

    Western Reserve acted as exclusive financial advisor to Cimarron Central LLC in its sale to Linx Partners.  This transaction represented the firm’s second engagement by Cimarron, as Western Reserve assisted the company its 2005 formation and capitalization.

    Headquartered in Guymon, Oklahoma, Cimarron designs, engineers and manufactures a line of mission critical, highly engineered equipment, systems and services used in the production and processing of natural gas.  The company’s product lines include production and process separators, natural gas dehydrators, combination separator/dehydrator units and specialty items.  Cimarron’s equipment is specifically designed and manufactured to work within the extreme conditions and requirements of the Rocky Mountain Region.

    Cimarron’s shareholders decided to explore a sale of the company to achieve partial liquidity and identify a financial partner supportive of their growth strategy.  Cimarron retained Western Reserve as its exclusive investment banker to assist in the process, and through a highly competitive process, Western Reserve marketed the company to a select group of financial and strategic buyers, facilitated the negotiation of the transaction price and helped draft the purchase agreement.

    Cimarron was acquired by Linx in August 2007.  Based in Scarsdale, New York, LINX is a private equity investment firm that partners with management to acquire and grow middle-market industrial companies.  Key members of Cimarron’s senior management team partnered with Linx in its investment and remain significant shareholders of the company.

    John Moore, Cimarron’s Chief Executive Officer, said, “Western Reserve has been a very special partner of Cimarron as we’ve executed our financial and operating strategy. They have been and will continue to be a trusted financial advisor to us as we look to grow our business over the next few years.”

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • z_Group-Dekko

    Dekko Wire, Inc.

    Manufacturer of automotive wire at four plants in Alabama and Texas

    Sold to: International Wire Group, Inc. (St. Louis, MO), a portfolio company of Hicks, Muse, Tate & Furst (Dallas, TX); provided fairness opinion

  • Elyria3

    Elyria Foundry Company

    Western Reserve acted as exclusive financial advisor to Elyria Foundry Company in its recapitalization by Silverhawk Capital Partners LLC and key members of Elyria’s senior management team.

    Founded in 1905 and headquartered in Elyria, Ohio, Elyria Foundry is the industry leader in providing medium and large-sized complex gray and ductile iron castings for critical applications in vital, domestic-sourced industries.  Elyria’s castings are primarily used in energy applications, including natural gas compression equipment and coal pulverizers for electric power generation.  Other applications include refrigeration, chillers, air conditioners, process machinery, air compressors and power and transmission equipment.

    Elyria’s shareholders decided to explore a recapitalization of the company to achieve partial liquidity and to identify a financial partner supportive of Elyria’s growth strategy.  Western Reserve was retained as the company’s exclusive investment banker to assist in the process.  Through a highly confidential but competitive process, Western Reserve introduced Elyria to a select group of financial sponsors, assisted in negotiating the transaction price and helped draft the purchase agreement.

    Elyria was recapitalized by Silverhawk and key members of Elyria’s senior management team in January 2007.  Based in Greenwich, Connecticut, Silverhawk is an independent investment group that invests in management buyouts and other private equity transactions in the industrial, energy, natural resources and business service sectors.  Post-transaction, Elyria’s senior management team continued to be involved with the company and remained significant shareholders.

    Sam Knezevic, Elyria’s Chief Operating Officer, said, “The Western Reserve team worked hard to achieve the best possible result for Elyria’s shareholders and employees.  They gave us extraordinary customer service.”

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • ARNCO2

    ARNCO Corporation

    Western Reserve acted as exclusive financial advisor to ARNCO Corporation in its sale to Audax Group.

    Founded in 1974 as ARNCO Equipment Sales Inc., ARNCO is the North American leader in developing and manufacturing high-quality, high-density polyethylene (“HDPE”) conduit used primarily by the telecommunication and energy industries.  Headquartered in Elyria, Ohio, ARNCO also manufactures and markets a fully integrated, cost-effective “system” of materials and placing equipment designed to make the entire cable installation process faster and easier.  ARNCO sells its customized products and system solutions to the power utility, electrical, telecommunication, cable TV, data communication and pressure pipe industries.

    The shareholders of ARNCO elected to explore a potential sale of the company for estate-planning purposes and to identify a partner with the financial resources to support the company’s growth strategy.  ARNCO retained Western Reserve as its exclusive investment banker who advised the company through a highly confidential, but competitive, process.

    ARNCO was recapitalized by Audax in March 2007.  Robert F. Smith, ARNCO’s Chairman, invested alongside Audax in the transaction.  Headquartered in Boston, Massachusetts, Audax is a leading investor in lower-middle market companies.  At the time of the transaction, Audax simultaneously acquired a chief competitor of ARNCO’s, Dura-Line Corporation, and ARNCO was expected to benefit from the combined synergies of the two companies, including significant cross-selling opportunities and access to international markets.

    Mr. Smith said, “The Western Reserve team worked hard to achieve the best possible result for ARNCO’s shareholders and employees.  They gave us extraordinary customer service and were with us every step of the way.  They did a terrific job in working through the many details of the transaction.”

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • bronx4

    Bronx International Inc.

    Western Reserve acted as exclusive financial advisor to Bronx International Inc. in its sale to the Fives Group.

    Headquartered in North Canton, Ohio, Bronx is comprised of two distinct businesses: 1) Bronx / Bronx Taylor Wilson, which produces equipment that straightens, finishes or tests pipes, bars and tubes (notably seamless tubes) and 2) Abbey, which produces Electrical Welding (ERW) tube and pipe mills that are used to produce tubular welded products.

    Widely recognized for its unmatched experience and technologies, the company offers its customers state-of-the-art design and engineering, project management, global procurement, field service, installation and turnkey solutions.  Bronx’s direct customers are steel and non-ferrous bar, pipe and tube producers within the steel sector, which include large blue-chip industrial groups. End-users of the company’s products belong to a large base of various industries, including oil and gas, high speed rail and energy transportation.  Bronx boasts a consistent record of product innovation, engineering leadership, reliable quality and the largest base of installations for its products in the industry.

    Bronx’s shareholders elected to explore a sale of the company to achieve liquidity and retained Western Reserve as its exclusive investment banker to assist in the process.  Western Reserve confidentially introduced Bronx to a range of financial and strategic buyers and assisted the company in navigating a series of issues and negotiating key transaction terms.

    Bronx was acquired by Fives in November 2010.  Headquartered in Paris, France, Fives is an industrial engineering group that designs and supplies process equipment, production lines and turnkey plants for the world’s largest industrial groups in the aluminum, steel, glass, automotive & logistics, cement, energy and sugar sectors. With over EU1.0 billion in sales, more than 5,500 employees on six continents and located in nearly thirty countries, Fives is known for its technological expertise and competence in executing large-scale international projects. The cross-border transaction was completed on an accelerated time frame, resulting in a successful outcome for the Company’s shareholders, and the expansion of Five’s metal finishing offerings and end-markets.

    Richard Jeschelnig, President and Chief Executive Officer of Bronx said, “The team at Western Reserve did an outstanding job in advising us throughout all phases of this process.  Western Reserve’s keen understanding of the capital equipment business, our business model and the competitive landscape, together with their expertise and perseverance in guiding us through myriad issues, as well as ability to access international opportunities, were essential in delivering superior value to our shareholders. This combination with Fives represents the best strategic outcome for our company and its owners.” 

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • Excel2

    Excel Mining Systems, Inc.

    Western Reserve represented Excel Mining Systems, Inc. in its sale to SPG Partners, LLC.

    Founded in 1991 by Bruce Cassidy, President, Chief Executive Officer and majority owner, Excel is the leading producer and manufacturer of roof bolts and related roof support control products to the U.S. underground coal mining industry.  Headquartered in Bowerston, Ohio, Excel has six manufacturing sites: Bowerston, Cadiz and Proctorville, Ohio; Grundy, Virginia; Marion, Illinois; and Clearfield, Utah.  Roof bolts and related products are essential to the safe and productive underground mining of coal.

    Management decided to explore the sale of the company to allow shareholders to achieve liquidity while ensuring new ownership supportive of Excel’s growth strategy.  Excel retained Western Reserve as its exclusive investment banker to assist in exploring its options, and through a highly confidential but competitive process, Western Reserve introduced Excel to a select group of buyers, assisted in negotiating the transaction price and helped draft the purchase agreement.

    Excel was acquired by SPG in October 2006.  Based in New York, New York, SPG is a private equity firm that leverages the expertise of its exclusive Operating Partners, who are seasoned industry executives.  CitiGroup Private Equity was a significant co-investor in the transaction, along with key members of Excel’s senior management team.

    Mr. Cassidy said, “The team at Western Reserve did a terrific job in putting us together with SPG and then working through the many details of the transaction.”

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • z_PECO-II

    PECO II, Inc.

    Western Reserve acted as exclusive financial advisor to PECO II, Inc. (NASDAQ: PIII) in its sale to Lineage Power Holdings, Inc., a portfolio company of The Gores Group. Western Reserve also rendered a fairness opinion to PECO II’s Board of Directors in connection with the transaction.

    PECO II, headquartered in Galion, Ohio, provides engineering and on-site installation services and designs, manufactures and markets communications power systems and power distribution equipment. As the largest independent full-service provider of telecommunications power systems, PECO II provides total power quality and reliability solutions and supports the power infrastructure needs of communications service providers in the local exchange, long-distance, wireless, broadband and Internet markets.

    PECO II’s senior management and Board of Directors engaged Western Reserve to advise the company on strategic alternatives aimed at maximizing shareholder value. Western Reserve introduced PECO II to numerous financial and strategic buyers (including Lineage), facilitated a competitive bidding process, negotiated the transaction and rendered a fairness opinion to PECO II’s Board of Directors. The transaction represented a 51% premium over the company’s closing share price the day before announcement.

    PECO II was acquired by Lineage in April 2010. Headquartered in Plano, Texas, Lineage, traces its heritage of patented innovation to AT&T, Bell Labs, Lucent Technologies and Western Electric. Lineage delivers reliable and intelligent power conversion solutions with energy-efficient AC-DC power supplies, DC-DC board-mounted power modules, telecom energy systems and custom power products backed by local field expertise in more than 25 locations worldwide. The Gores Group, headquartered in Los Angeles, California, is a leading private equity firm focused on acquiring controlling interests in mature and growing businesses that can benefit from the firm’s operating experience and flexible capital base.

    John Heindel, Chief Executive Officer of PECO II, said, “The team at Western Reserve did an outstanding job in advising PECO’s senior management and Board of Directors as to our strategic alternatives. The combination with Lineage represents the best strategic outcome for all of our stakeholders. Western Reserve’s keen understanding of our business model and competitive landscape, together with their expertise and perseverance in maintaining a competitive process in a very difficult M&A environment, were essential in delivering superior value to our shareholders.”

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • z_Avtron

    Avtron Manufacturing, Inc.

    Western Reserve acted as exclusive financial advisor to Avtron Manufacturing, Inc. in its recapitalization by Morgenthaler Partners.

    Avtron, headquartered in Independence, Ohio, designs, engineers and manufactures highly technical electrical control and test equipment for several industries including aerospace, metals, mining, pulp and paper and alternative energy.  The Company operates in three divisions: Aerospace, Industrial Automation and Load Banks.  The Aerospace Division manufactures test equipment for airplane components.  The Industrial Automation Division manufactures encoders and industrial automation systems used in various manufacturing and heavy industrial applications.  The Load Bank Division manufactures equipment to test back-up power generators and alternative energy sources.

    The shareholders of Avtron engaged Western Reserve as its exclusive investment banker to assist in exploring the sale of the company to achieve liquidity and initiate a succession plan for senior management.  Western Reserve introduced Avtron to a select group of buyers, assisted in negotiating the terms and conditions of the deal and helped draft the definitive purchase agreement.

    Avtron was recapitalized by Morgenthaler in November 2007.  Based in Cleveland, Ohio, Morgenthaler is a private equity firm specializing in middle market investments.  Through a complex deal structure, which maximized the value paid to shareholders, Avtron created three separate LLCs that were subsequently acquired by Morgenthaler Partners.  The shareholders of Avtron reinvested, side-by-side, with Morgenthaler to retain a significant ownership interest in the company and share in the economic benefit of the company’s future growth potential.  They continue to manage the business.

    Bob Fritz, President and Chief Executive Officer of Avtron, said, “Western Reserve went beyond my concept of what was included in marketing a company.  During crucial stages in the deal process, Western Reserve not only advised us on what needed to be done, but stepped in and did it.”

    . . .

    The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others.  The testimonials are not paid and are not indicative of future performance or success.

  • Schwab4

    Schwab Industries, Inc.

    Western Reserve acted as financial advisor to the Bankruptcy Estate of Schwab Industries, Inc. in the sale of its assets to Oldcastle Materials, Inc., a division of CRH plc (NYSE: CRH), and Resource Land Holdings, LLC (“RLH”).

    Schwab was a leading producer, supplier and distributor of ready-mix concrete, concrete block, cement and related supplies to commercial, municipal and residential contractors in Northeast Ohio and Southwest Florida. Schwab’s ready-mix operations consisted of Medina Supply Company, Quality Block & Supply, Inc. and Twin Cities Concrete in Ohio and Schwab Ready-Mix, Inc. in Florida.  The company’s assets also included Eastern Cement Corporation (“ECC”), a deep-water port on the gulf coast of Florida, and Schwab Materials, Inc. (“SMI”), an orange grove with significant identified limestone reserves in Fort Myers, Florida.

    Schwab commenced a Chapter 11 bankruptcy case and filed a motion to sell the company to Cement Resources LLC, a newly formed holding company jointly owned by two private equity firms, Atlas Holdings LLC and GarMark Partners. Cement Resources emerged as the stalking horse bidder for all of Schwab’s assets and entered into a definitive asset purchase agreement with the company. In accordance with procedures approved by the bankruptcy court, Western Reserve solicited written offers from other prospective purchasers, including Oldcastle and RLH, to “top” the stalking horse bid.  A live 363 auction was held and included eight different interested parties.

    Over the course of the June 2010 auction, bids were solicited for some or all of the assets, and the leading bid changed hands several times among several different groups (including combinations of groups). Ultimately, Oldcastle emerged as the winning bidder of the Ohio and Florida ready-mix assets as well as ECC, and RLH emerged as the winning bidder of SMI.

    Oldcastle is the leading vertically integrated supplier of aggregates, asphalt, ready mixed concrete and paving services with 1,400 locations nationwide. Oldcastle consists of strong, established companies who retain their identity while leveraging the technology, expertise and financial resources of the larger organization. RLH was founded in 1998 to invest in agricultural, timber and mining properties in the U.S. Through partnerships with local brokers, operators and entrepreneurs, RLH invests in properties across a broad range of resource-rich asset classes. To date, RLH has organized and managed two separately funded entities as well as four private equity funds.

     

  • Fairmount3

    Fairmount Minerals

    Western Reserve provided the fairness opinion to the Board of Directors of FML Holdings, Inc. (d/b/a Fairmount Minerals) in its sale to American Securities.

    Headquartered in Chardon, Ohio, Fairmount is one of the largest producers of industrial sand in the U.S. At the time of the transaction, approximately 80% of the company’s sales were tied to the oil and natural gas production markets, with the remainder going to commercial and industrial uses, including foundries, construction, golf courses, artificial turfs, etc.

    To provide liquidity to certain of Fairmount’s shareholders, the company entered into an agreement to sell a 51% common equity stake to American Securities. Western Reserve was engaged to provide Fairmount’s Board of Directors with a fairness opinion, and the transaction was consummated in August 2010.