The Shipston Group, through its affiliate Shipston Equity Holdings, has acquired Busche Enterprise Division, Inc., a computer numerical control production machining company.
Busche Enterprise Division (Busche) specializes in precision production machining for the automotive, agriculture, construction and industrial markets. Founded in 1997 by Nick Busche, the company employs 650 people at manufacturing operations in Albion, IN (headquarters) and Hartselle, AL (www.busche-cnc.com).
The Shipston Group is a private equity firm with a range of portfolio companies concentrated largely in China, Russia, and Eastern Europe. The Chairman of Shipston Group is Michael Dingman, the former President of Signal and Allied Signal and CEO of Allied Signal’s spin-off Henley Group. He was also the CEO of Fisher Scientific. In 1994, Mr. Dingman began investing in emerging markets, with an emphasis on restructuring opportunities in Russia as the nation was privatizing its industries. He began investing in China in 2008. Mr. Dingman is a former director of Ford Motor Company (21 years), Time Inc. and Time Warner Inc. (23 years), and Mellon Bank Corporation. The Shipston Group is headquartered in Lyford Cay, Bahamas (www.shipstongroup.com).
“We are fortunate to partner with Nick Busche and his entire management team in the next phase of growth with this tremendous company,” said Mr. Dingman. “We share fundamental principles in valuing employees, customers and suppliers. Under Nick’s continuing leadership, we intend to pursue an aggressive expansion for the long term support of our customers. On the broader front, I see growth opportunities that are very similar to those that I experienced with the Henley Group, empowering topflight operational management with substantial equity firepower, and proper financial expertise, which will really allow Busche to makes waves across the sector.”
Under the agreement, Mr. Dingman will be majority shareholder, while Mr. Busche will continue as CEO and president of Busche.
“I’m very pleased to be joining Shipston,” said Mr. Busche. “Our values are closely aligned and our focus on long term operating fundamentals and growth makes a really powerful combination. Now, under the Shipston umbrella, plans are afoot to make substantial commitments to increasing capacity and work has already begun on significant expansion in Indiana and elsewhere. All of this will allow Busche to continue to grow as an industry leader.”
Partnering on this transaction with Shipston Group was ORIX Americas, Oakmont Group, and Shea Ventures. Senior financing was provided by Comerica Bank.
“We are pleased to be investing in such a fine company and management team,” said Jeff Sangalis, managing director of ORIX Mezzanine & Private Equity. “We are also particularly excited about the opportunity to team with Shipston, which is ideally suited to assist the Busche management team in taking advantage of the substantial growth opportunities ahead.”
“The combination of a great operating team and our financial partners will provide the building blocks for future growth and acquisitions in this industry sector,” said Mr. Dingman. “My objective is to make this my most successful investment and position it for a solid future through acquisitions like my operating team did with Henley, Fisher Scientific and Wheelabrator.”
2014 PEPD • Private Equity’s Leading News Magazine • 11-10-14
