HBM has acquired Schafer Industries, a producer of gears and machined parts that are used in a range of markets and applications.
Schafer Industries is a producer of custom-engineered gears and machined parts as well as assembled axles, transaxles, transmissions, and brake assemblies. The company operates through two divisions: Schafer Gear Works manufactures gears that are used in a variety of markets and applications, including aerospace, industrial warehouse equipment, automotive, agricultural and construction; and Schafer Driveline is a manufacturer of assembled transaxles and brake components used in the recreational and off-highway vehicle industries.
In total, Schafer operates four facilities – Ohio (2), Illinois, and Indiana – with over 300,000 square feet of manufacturing space. The company was founded in 1934 and is headquartered in South Bend, IN (www.schaferindustries.com).
“We are thrilled to bring Schafer into our portfolio,” said Mike DeCola, HBM’s CEO. “Schafer’s leadership team has done a remarkable job of growing the company by helping customers solve complex problems. Building on this success, we look forward to further expansion of the business. Schafer is a perfect fit for our model, as the current ownership group is ready to transition the business to reach a new level of capability and success.”
Bipin Doshi, CEO and President, and his wife Linda, and Stan Blenke, Executive VP and CFO, acquired Schafer from South Bend Lathe approximately 30 years ago. “As we engaged in the process of selling Schafer, our priorities were our employees and our customers. Throughout the process, HBM Holdings stood out not just in value for us as shareholders, but in terms of cultural fit,” said Mr. Doshi. “They understand our markets, technology and resource constraints and have a talent development strategy that will help our people continue to grow and succeed. Their focus on growth will benefit both our employees and our customers.” Both Mr. Doshi and Mr. Blenke will stay involved with the company during a transition period.
HBM looks to acquire specialty manufacturers that have EBITDA from $10 million to $25 million. Sectors of interest include industrial equipment & components, energy equipment, transportation equipment (excluding automotive), and chemicals & minerals. The firm was founded in 2012 to diversify and expand the business of the Mississippi Lime Company, a manufacturer of calcium products which was founded in 1907 by Harry B. Mathews. HBM is based in St. Louis (www.hbmholdings.com).
With closing of the acquisition, Eric Van Rens has been named as Schafer’s new CEO. Since 2004, Mr. Van Rens has served as the Vice President, Sales & Marketing of Mississippi Lime. He also held prior roles in operations, marketing and general management with Astaris and FMC Corporation.
© 2017 Private Equity Professional | August 2, 2017
