Stellex Capital Management has agreed to acquire McConway & Torley and Standard Forged Products (together MTSF) from publicly traded Arcosa.
McConway & Torley (MT) specializes in manufacturing steel castings for the railroad industry, including couplers, yokes, and knuckles. In the railroad industry, couplers connect train cars, yokes support and align the couplers, and knuckles are the pivoting parts of couplers that lock cars together.
MT, led by President Michael Mooney with more than 300 employees, was founded in 1869 and is headquartered in Pittsburgh, with an additional facility near Philadelphia in Kutztown, Pennsylvania.
Standard Forged Products (SFP) specializes in manufacturing axles, crankshafts, and other parts used in railroads, trucks, and heavy machinery applications. The business, with 130 employees, operates in Pittsburgh and McKees Rocks, Pennsylvania.
Arcosa (NYSE: ACA) was formed in November 2018 through the spinout of the infrastructure-related businesses of Trinity Industries. Today, Dallas-headquartered Arcosa is a provider of infrastructure-related products, including natural and recycled aggregates used in construction; engineered structures used by utilities, including wind towers and telecommunication towers; and transportation products for inland barges, marine applications, and railcar components. Arcosa had $2.3 billion in revenues in 2023.
“We see tremendous potential in the company’s capabilities and are committed to investing in its future,” said Michael Livanos, a managing director at Stellex. “This acquisition aligns with our strategy of applying operational expertise in an effort to drive growth in critical manufacturing sectors. Additionally, it reinforces our dedication to the Pittsburgh region, complementing our local office opened in 2022 and marking our second investment in a Pittsburgh-based company.”
In November 2022, Stellex acquired A. Stucki Company, a Pittsburgh-based maker of railcar parts including bearings, yokes, and springs; control products including shock absorbers and end-of-car cushioning units; and braking systems used by Class 1 railroads, OEMs, and private railcar owners.
In tandem with the acquisition of McConway & Torley and Standard Forged Products, Stellex has named 25-year industry veteran David Meyer as CEO of the company. Mr. Meyer’s rail industry experience includes roles as President of the Industrial Group and Group Executive of the Transit sector at Wabtec, and Executive Chairman at A. Stucki Company. He has also held senior executive positions at Stone Canyon Industries Rail and American Track Services.
“The team’s expertise in engineered solutions sets it apart in the industry,” said Mr. Meyer. “We’re eager to build on the company’s 150-year legacy, continue to provide excellent service to existing customers, and explore new opportunities for growth. As we enter this new chapter, I’m excited to lead this talented workforce as they expand capabilities and reach new markets.”
New York City-headquartered Stellex invests from $50 million to $150 million in United States or Europe-based companies with enterprise values from $50 million to $500 million and revenues greater than $100 million. Sectors of interest include specialty manufacturing, industrial and business services, aerospace and defense, automotive, government services, transportation, logistics, and food. Stellex has additional offices in Detroit, Pittsburgh, and London.
Evercore was the financial advisor to Arcosa on this transaction.
© 2024 Private Equity Professional | August 6, 2024
