CODI’s Arnold Magnetic Adds Ramco

Arnold Magnetic Technologies, a portfolio company of publicly traded Compass Diversified (CODI), has acquired Ramco Electric Motors.

Ramco is a maker of custom stators (the stationary part of an electric motor), rotors, shaft assemblies and subassemblies, and full electric motors that are used in hybrid buses, airplanes, forklifts, industrial fans, building elevators, mining equipment, earthmovers, and medical devices.

Ramco is led by CEO Dan Seger and has just over 120 employees. The company was founded in 1987 by Ray Dunaway and is headquartered 40 miles northwest of Dayton in Greenville, Ohio.

Arnold Magnetic manufactures and distributes magnets, magnetic assemblies, thin and ultra-thin gauge (as thin as two microns) metal strips and foil products that are used in motors, generators, and sensors. Customers of the company, totaling more than 2,000, are active in the aerospace and defense, general industrial, motorsport, oil and gas, medical, and energy sectors.

Arnold Magnetic is headquartered in Rochester, New York and has additional facilities in Ohio, Illinois, Wisconsin and Nebraska, and internationally in the United Kingdom, Switzerland and China.

The history of Arnold Magnetic dates to 1896 when it was founded by electrical engineer Bion Arnold, a close friend of both Charles Steinmetz, the developer of alternating current theory, and famed inventor Thomas Edison. The company was acquired by Allegheny Ludlum in 1946, sold to SPS Technologies in 1946, and acquired by Compass Diversified in 2012 for $129 million. Today, the company is led by CEO Dan Miller.

“Over the past 125 years, Arnold has successfully evolved and adapted its technologies and manufacturing presence to provide world-class quality products and service to our customers,” said Mr. Miller. “By augmenting our technical know-how and engineering capabilities with Ramco’s complementary product portfolio, we will move up the technology ladder and be able to offer more comprehensive, turnkey solutions to our customers. We have a clear line of sight to future growth opportunities through partnering with Ramco’s talented team.”

Compass Diversified (NYSE: CODI) is a publicly-traded investment company that invests between $75 million and $700 million in companies that have EBITDA of at least $10 million. Sectors of interest include niche industrial or branded consumer companies that are headquartered in North America. Compass went public in 2006 and is based in Westport, Connecticut.

“With the acquisition of an industry leader like Ramco, Arnold is continuing to execute its strategy to become a leading technology-based, engineering solutions company,” said Elias Sabo, the chief executive officer of Compass. “Arnold and Ramco are naturally complementary businesses and, together, are more competitive in the marketplace – offering significant opportunity to gain market share and acquire new customers. We look forward to partnering with the Arnold and Ramco teams to integrate their capabilities and realize the full benefits of this transaction, and we remain confident in the future of Arnold’s business.”

With the close of the transaction, Ramco’s operations remain in Greenville, Ohio and it continues to go to market under its brand name as a division of Arnold Magnetic.

© 2021 Private Equity Professional | March 4, 2021

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