DexKo Global, a portfolio company of The Sterling Group, has acquired Rockwell American from Polar Corporation, a portfolio company of American Industrial Partners.
Rockwell American is a manufacturer and distributor of trailer components, including axles, leaf springs, fenders, tires and wheels, jacks and couplers, and a variety of other components. The company sells its 25,000 SKU product line to more than 6,000 customers that operate in the housing, construction, agriculture, oil & gas, and aftermarket sectors. Rockwell American has 400 employees, five manufacturing locations and operates 16 distribution branches across the US and is headquartered northwest of Ft. Worth in Azle, TX (www.rockwellamerican.com).
The Sterling Group acquired the Dexter Axle business from Tomkins Industries in November 2012. Dexter – based in Elkhart, IN – is a designer and manufacturer of trailer axles, brake, and suspension assemblies and related replacement parts and components that are used in the industrial and utility trailer and RV markets. In January 2016, Dexter Axle acquired AL-KO Vehicle Technology, a Kötz, Germany-based designer and manufacturer of trailer axles, trailer and caravan components, and chassis. The Sterling Group combined the two companies under the umbrella of DexKo Global which now has annual revenues of nearly $1 billion (www.dexko.com). DexKo Global is led by CEO Fred Bentley.
The Sterling Group targets controlling interests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million. The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires. Sterling was founded in 1982 and is headquartered in Houston (www.sterling-group.com).
American Industrial Partners makes equity and debt investments in North American-headquartered industrial companies that have revenues from $100 million to $750 million. Transaction values are typically less than $500 million. The firm was founded in 1989 and is headquartered in New York (www.americanindustrial.com).
Angle Advisors – based in the Detroit suburb of Birmingham – was the financial advisor to Rockwell American on this transaction (www.angleadvisors.com).
© 2016 Private Equity Professional • 9-13-16
