Valesco Acquires BloApCo from GenCap
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Valesco Acquires BloApCo from GenCap

Valesco’s acquisition of BloApCo is the first platform investment for the firm’s $434 million third fund which closed in July 2023

Blower Application’s equipment includes shredding systems, trim handling systems, material handling fans, and conveying systems that are used to process and dispose of corrugated and polycoated paper, wood and plastic pallets, light metal and other materials.

SOURCE: BlowApCo

Valesco Industries has acquired Blower Application, a maker of solid waste and scrap and processing systems, from Gen Cap America which acquired the business in December 2018.

Blower Application’s (BloApCo) equipment includes modular shredding systems, trim handling systems, material handling fans, trim cutters and conveying systems. Companies use BloApCo’s equipment to process and dispose of corrugated and polycoated paper, wood and plastic pallets, foil, light metal and other materials. The company also provides aftermarket parts and refurbishing services.

Source: BloApCo

BloApCo was founded in 1933 by Charles Jackson and William Kussmaul and today is headquartered northwest of Milwaukee in Germantown, Wisconsin.

Valesco’s acquisition of BloApCo – funded with both equity and subordinated debt – is the first platform investment for the firm’s third fund, Valesco Fund III LP, which closed in July 2023 with an above target $434 million of capital. The firm’s earlier fund closed with $293 million of capital in February 2018.

“We believe we found the right business partner in Valesco; one that would continue the work we spent 90 years building,” said BloApCo’s President Dan Cieslewicz. “At BloApCo we take great pride in manufacturing quality equipment and well-designed scrap systems to our customers. Valesco is an ideal investment partner for us. They not only understand and support our history, vision and values, but will offer key support as we continue to execute against our mission to be the best scrap system equipment manufacturer in our marketplace.”

Dallas-headquartered Valesco was founded in 1993 and is led by Bud Moore, Heather Hubbard and Jack Sadden. The firm makes control and non-control investments of equity and subordinated debt in United States-based companies that have from $15 million to $100 million in revenue, a history of profitability, and at least $3 million of cash flow. Sectors of interest include manufacturing, value-added distribution and business services.

Gen Cap America invests in companies with revenues between $10 million and $200 million and EBIT of $2 million to $15 million that are active in the manufacturing, distribution, or service sectors. Gen Cap was founded in 1988 and is based in Nashville.

Mesirow Financial was the financial advisor to BloApCo on this transaction.

© 2024 Private Equity Professional | February 28, 2024

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