Saw Mill Capital and Falcon Investment Advisors have partnered with David Westgate to seek and acquire manufacturing businesses. To fund the new platform, Saw Mill will invest from its newly raised fund, Saw Mill Capital Partners II, LP, while Falcon will invest from Falcon Strategic Partners V, LP.
The new platform will acquire divisions or subsidiaries of both public and private industrial manufacturing companies that need operational improvements and/or new senior management. Typical targets will have $400 million to $1 billion in revenue.
Mr. Westgate was most recently the CEO of Jason Industries, a manufacturer of seating, automotive acoustics, industrial finishing and components products from 2004 to 2015. Saw Mill acquired Jason in 2000, and Falcon invested in the company in 2010. Saw Mill and Falcon sold Jason in July 2014 to Quinpario Partners, a St. Louis-based investor in the specialty chemicals and performance materials sectors.
At the time of the sale, Jason was the parent company to a global group of manufacturing companies including Assembled Products (Buffalo Grove, IL), Janesville Acoustics (Southfield, MI), Metalex (Libertyville, IL), Milsco (Milwaukee, WI), Morton Manufacturing (Libertyville, IL), Osborn (Cleveland, OH and Burgwald, Germany) and Sealeze (Richmond, VA). Jason is headquartered in Milwaukee (www.jasoninc.com).
“It is a pleasure to again be working with the great teams at Saw Mill and Falcon. At Jason, our partnership led to a rapid acceleration of growth in multiple markets and geographies,” said Mr. Westgate. “We are today eager to apply this winning mix to global manufacturing businesses that have been under-capitalized and/or under-managed, with the goal of uncovering obscured value that will drive a similar level of success.”
“Dave is an exceptional leader and hands-on operator with whom we have had a long and profitable relationship,” said Scott Rivard, a Partner at Saw Mill. “We have seen firsthand his ability to drive operational excellence and are thrilled to have the opportunity to partner with him again.”
Saw Mill Capital invests in manufacturing and service companies with enterprise values of $25 million to $200 million. Platform investments typically have at least $5 million of EBITDA and revenues of $40 million to $150 million. The firm is headquartered north of New York City in Briarcliff Manor (www.sawmillcapital.com).
“We are looking for investment opportunities where Dave can instill a culture of continuous improvement to drive growth and operating leverage, like he did consistently at Jason,” said John Schnabel, a Partner at Falcon.
Falcon Investment Advisors invests from $25 million to $75 million of subordinated debt and equity in middle market companies. Since its founding in 2000, Falcon has invested in more than 75 companies in a range of industries. The firm is currently investing out of Falcon Strategic Partners V, LP and has offices in Boston and New York (www.falconinvestments.com).
Earlier in his career and before he joined Jason Industries as CEO, Mr. Westgate was CEO at Rieter Automotive Systems (noise control and thermal management) and CEO of Solvay Automotive (fuel and air management systems).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-26-16