Blue Sage Capital has acquired Magnum Systems, a designer and manufacturer of equipment used in the handling and packaging of dry bulk materials. Blue Sage purchased the company from Gen Cap America which acquired the company in March 2012.
Magnum specializes in equipment that is designed to handle free-flowing materials that are difficult to package or convey such as grain, seeds, cereals, sugar, flour, plastic pellets, plastic powder, sand, cement, fertilizers, and granulate chemicals. The company has an internal sale team and sells its products under the Smoot (material handling) and Taylor Products (packaging) brand names. Magnum has a base of approximately 10,000 customers that operate in the food, agriculture, chemical, industrial minerals, and plastics sectors. Magnum, led by CEO Travis Wallace, is headquartered in Kansas City with an additional manufacturing facility in Parsons, KS (www.magnumsystems.com).
“Magnum management and shareholders have built a solid business with a long track record of market leadership in the pneumatic material handling and packaging industries,” said Peter Huff, Co-Founder and Managing Member of Blue Sage. “We are delighted to partner with Travis Wallace and his team as we work together to accelerate the growth initiatives at the company.”
Blue Sage Capital specializes in growth, recapitalization and buyout financings of smaller middle-market companies based in Texas and the Southwest. Most of Blue Sage’s investments are in established, profitable companies with $20 million to $100 million of revenue and $3 million to $12 million of EBITDA. Blue Sage invests in a variety of industries, with each initial investment in a company ranging from $10 million to $15 million. The firm is based in Austin, TX (www.bluesage.com).
“The Magnum management team is thrilled to partner with Blue Sage as we seek to lead the company into its next stage of growth,” said Mr. Wallace. “The Magnum brand is highly respected in the industry and with the resources and skill set Blue Sage can bring to bear, we believe the company is well-positioned for the future.”
© 2016 Private Equity Professional • 10-12-16
