A. Stucki is active in the engineering, reconditioning, machining and manufacturing of railcar and industrial parts. Products include constant contact side bearings, resilient friction shoes, hydraulic stabilizers, draft gears, and brake beams. Through its subsidiaries the company also provides freight and locomotive component repair and reconditioning services; hot wound coiled spring manufacturing; high quality iron castings; precision CNC turning and milling; and custom molded urethane products. The company is led by CEO Bill Kiefer and CFO David Lendt. A. Stucki was founded in 1911 and is headquartered near Pittsburgh in Moon Township, PA (www.stucki.com).
“We appreciated Quad-C’s knowledge of our industry and collaborative approach,” said Mr. Kiefer. “Over the past five years, Quad-C has provided excellent support for our strategic initiatives and has invested capital to enable us to diversify our product offering, to expand geographically and to acquire complementary businesses.”
Quad-C invested in A. Stucki in 2010. During its term of ownership A. Stucki more than doubled its revenues through a combination of organic growth and three add-on acquisitions. “This was a terrific investment for Quad-C,” said Tony Ignaczak, President of Quad-C. “We backed a great team in the rail sector, where we had an active investment thesis and value creation strategy.”
Quad-C invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution, and transportation & logistics. Quad-C was founded in 1989 and is headquartered in Charlottesville, VA (www.quadcmanagement.com).
Transportation and logistics is an area of focus for Quad-C and the A. Stucki investment is one of many investments Quad-C has made in this sector over the course of its twenty-six year history. Other current investments in the sector include third party logistic services companies Worldwide Express which was acquired in 2013 (www.wwex.com) and Network Global Logistics, acquired in 2012 (www.nglog.com).
Stone Canyon Industries, the buyer of A. Stucki, invests in companies valued between $50 million and $1 billion across a wide range of industries. The firm is led by Co-CEOs James Fordyce and Adam Cohn and is headquartered in Santa Monica (www.stonecanyonllc.com).
Harris Williams & Co. (www.harriswilliams.com) served as the exclusive financial advisor to A. Stucki. The transaction was led by Jason Bass, Joe Conner, Jeff Burkett, Jeff Kidd and Jay Beekman of the firm’s transportation & logistics group.
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-6-15