Alleghany Capital Corporation has formed Precision Cutting Technologies (PCT) as a new holding company for its investments in the machine tool and consumable cutting tool sectors.
PCT (www.precision-cutting.com), led by President Terry Derrico, consolidates the current ownership interests of Alleghany Capital in Bourn & Koch, a Rockford, IL-based manufacturer of machine tools and related replacement parts that was acquired in May 2012 (www.bourn-koch.com); and Diamond Technology Innovations (DTI), an Olympia, WA-based maker of waterjet orifices and nozzles (www.dtiinside.com) that was acquired by Bourn & Koch in October 2016.
In addition, PCT has announced the acquisition of Coastal Industrial Distributors (DBA CID Performance Tooling), a Saco, ME-based manufacturer of solid carbide end mills led by its founder and president Jay Lowery (www.cidtools.com).
“CID enhances PCT’s portfolio of consumable cutting tools while expanding our business in the aerospace, defense, and medical end-markets,” said Mr. Derrico. “With Jay Lowery continuing to lead the company post-transaction, CID’s day-to-day operations will not be impacted. However, we believe CID will be well positioned to accelerate growth and augment its geographic reach by leveraging the experience, capabilities, and support of Bourn & Koch, DTI, and Alleghany Capital.”
“This transaction furthers Alleghany Capital’s growth strategy in the machine tool and consumable tooling industries,” said David Van Geyzel, president and chief executive officer of Alleghany Capital. “While the formation of Precision Cutting Technologies will not change the management of Bourn & Koch, DTI, and CID, it places these companies under a single platform so that they can share resources and leverage their combined capabilities to provide an enhanced product and service offering to their customers. Alleghany Capital is pleased to welcome CID to the Precision Cutting Technologies group of companies and looks forward to supporting Bourn & Koch, DTI, and CID as they continue to serve their markets.”
Alleghany Capital makes majority investments in North American-based companies that have from $20 to $60 million of EBITDA. Sectors of interest include consumer products, business services, and manufacturing. The firm is part of Alleghany Corporation (NYSE: Y) an investment holding company founded in 1929 by railroad entrepreneurs Oris and Mantis Van Sweringen as a holding company for their railroad interests. Alleghany Capital is headquartered in New York.
Dinan & Company was the financial adviser to Alleghany Capital on this transaction.
© 2019 Private Equity Professional | June 25, 2019