Delos Capital and The Silverfern Group have acquired Le Sueur Incorporated, a maker of complex and pressure-tight aluminum castings and plastic injection molding components.
Le Sueur’s (LSI) aluminum casting capabilities include permanent mold, sand casting, and die casting; and its plastic injection molding capabilities include horizontal, vertical, insert and two-shot molding utilizing 32 plastic injection molding machines ranging in size from 25 tons to 500 tons.
LSI is a third-generation family-owned company that was founded in 1946 as the Le Sueur Foundry Company. The business added permanent mold and die-casting capabilities in 1959 through the acquisition of Sheldon Die Casting, and its thermoplastics injection molding division was added in 1984. The name was changed from the Le Sueur Foundry Company to Le Sueur Incorporated in 1991 and later, in 1996, to continue adding to its service capabilities, LSI formed a machining and assembly division.
Today, LSI’s products are sold to more than 130 worldwide customers that are active in the transportation, specialty automotive, and recreational sectors; as well as in the power generation, defense, agriculture, and medical sectors. LSI, led by CEO Dick Seidenstricker, is headquartered 60 miles southwest of Minneapolis in Le Sueur, Minnesota.
“We are excited to partner with Silverfern and the management team of LSI, a leading provider of complex precision aluminum casting and plastic injection molding components,” said Michael Rakiter, a partner at Delos Capital. “We are honored to continue the legacy of a successful third-generation family-owned business created by the Mueller family.”
Delos Capital invests in lower middle market companies that have EBITDA of $5 million to $30 million and are active in the building materials, business and industrial services, chemicals, packaging, and consumer sectors. The firm was founded in 2013 and is headquartered in New York City.
Silverfern makes direct and co-control middle market investments of $20 million to $50 million in partnership with family offices and private equity firms. Typical transaction types include buyouts, build-ups, acquisitions, growth equity, and recapitalizations. Silverfern is headquartered in Greenwich, Connecticut with additional offices in Frankfurt, Germany, and Sydney, Australia.
“LSI is a leading manufacturer of specialized aluminum castings and injection molded plastics, serving global customers successfully over the past seventy-seven years,” said Deepak Ghosh, a managing director at Silverfern. “We look forward to partnering with the management team to grow the company through a focus on technology and manufacturing excellence in partnership with its customers.”
Genesis Park and Ironwood Capital co-invested both debt and equity to support the buy of LSI by Delos and Silverfern. “LSI provides a wide range of in-house tooling design, engineering, and production capabilities and is poised to benefit from the macroeconomic reshoring trend in the US,” said Paul Witinski, a managing director at Ironwood. “We look forward to partnering with the experienced investor group and management team at LSI on the next phase of growth.”
Sperry, Mitchell & Company was the financial advisor to the LSI ownership group. Paul Sperry and Kyle Morgan led the firm’s transaction team.
© 2023 Private Equity Professional | January 13, 2023
