Speyside Equity and Beckner Clevy Partners have together acquired Dalton Foundry Company from Neenah Enterprises. Former Dalton president Joe DeRita and former vice president of operations Larry Cohen invested in this transaction alongside Speyside Equity and Beckner Clevy.
Dalton Foundry, with annual revenues of approximately $70 million, is a manufacturer of machined gray iron castings that are used in the industrial, HVAC, agricultural, marine and construction sectors. The transaction includes the company’s main casting facility in Warsaw, IN and a machining facility in Stryker, OH. Dalton Foundry was founded in 1914 by Donald J. Dalton and acquired by Neenah Enterprises in 1998.
“Dalton has a tremendous legacy and Speyside has a strong track record in the industry. We are excited to partner with management to drive exceptional performance,” said Speyside Managing Director Jeffrey Stone. “The current environment for foundries is challenging, but Dalton has the capabilities to manage through this environment and create a sustainable path for the next 100 years.”
Last month, Speyside closed Speyside Equity Fund I LP with $130 million of capital commitments. The new fund was closed in less than 4 months of fundraising and was significantly oversubscribed. Investors in the new fund include institutional limited partners such as, endowments, foundations, insurance companies, fund of funds, public and private pensions, and family offices.
Speyside invests in chemicals, industrials, metal forming, and food ingredients businesses that typically have enterprise valuations from $20 million to $200 million, revenues from $20 million to $300 million, and are based in the United States or Western Europe. Transaction types include spin-offs and carve-outs of large multinational businesses, industry consolidations, or family-owned businesses. The firm prefers situations where there are opportunities to leverage its operating expertise to improve financial performance and create shareholder value. Speyside was founded in 2005 and is based in Detroit (www.speysideequity.com).
Co-investing in Dalton Foundry with Speyside is Beckner Clevy Partners which invests in small to mid-market manufacturing and industrial businesses with revenues from $25 million to $150 million and EBITDA less than $10 million. The firm was founded by James (Jim) Beckner and W. Michael (Mike) Clevy and is based in Nashville (www.becknerclevypartners.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-18-16
