New State Capital Partners has sold Central Conveyor Company to U.S. Tsubaki Holdings, a wholly owned subsidiary of Tsubakimoto Chain, for approximately $140 million.
Central Conveyor Company is a designer and installer of material handling and storage retrieval systems used by companies that are active in the automotive, parcel & logistics, and warehouse & distribution markets. The company’s services include custom controls and integration as well as electrical field wiring and support. Central Conveyor, led by CEO Rick Wells, was founded in 1993 and is headquartered near Detroit in Wixom, MI (www.centralconveyor.com).
New State acquired Central Conveyor in December 2014. During the term of ownership, the company launched new divisions in controls and tooling, acquired original equipment manufacturer KCI in March 2017, doubled its number of employees to 200, and built a new corporate headquarters in Wixom, MI. As a result of these efforts, the company’s revenues increased by 374 percent and are now at more than $200 million.
“Central Conveyor has achieved tremendous growth by every measure over the last three and half years, expanding the business both organically and through acquisition,” said David Blechman, founder of New State Capital. “We worked closely with the company’s management team to help Central Conveyor realize these results, and we wish them future success under their new owners.”
Tsubakimoto Chain, the buyer of Central Conveyor, is a manufacturer and developer of power transmission products, materials handling systems, factory automation systems, physical distribution systems, and electronic control devices. The company’s products are used in a range of industries including machine tools manufacturing, mining, construction machinery, steelmaking, LCD production, semiconductor fabrication, and automotive. Tsubakimoto Chain is headquartered in Osaka, Japan (www.tsubakimoto.com).
New State invests from $10 million to $50 million of equity in companies with $8 million to $30 million of EBITDA. Sectors of interest include healthcare services, business services, and industrials. In March 2018, New State closed its second institutional investment fund, New State Capital Partners Fund II LP, at its hard cap of $255 million. The firm was founded in 2013 and is headquartered near New York City in Larchmont, NY (www.newstatecp.com).
Lincoln International (www.lincolninternational.com) was the financial advisor to New State Capital and Central Conveyor, and Duff & Phelps (www.duffandphelps.com), led by Managing Director Ray Newman, provided sell-side due diligence services.
© 2018 Private Equity Professional | June 18, 2018
