Baker Manufacturing Company, a provider of water systems and industrial components, has acquired the pump division of A.Y. McDonald Manufacturing (McDonald Pump).
Baker Manufacturing specializes in the manufacture of water well equipment, rotary gear pumps, and ductile and gray iron castings for residential, industrial, municipal, agricultural, and environmental applications. The company operates through three divisions: Baker Casting, which pours gray and ductile iron castings; Haight Pump, which produces gear pumps; and Baker Water Systems, which produces products for residential, municipal/industrial, and environmental use. Founded in 1873 and headquartered in Evansville, Wisconsin, Baker is led by CEO Don Wesdell.
McDonald Pump manufactures submersible pumps for private well systems, light commercial, and irrigation applications; diaphragm pressure tanks for well systems and hydronic applications; irrigation and super booster pumps used in agricultural applications; jet pumps for private well systems and low-flow irrigation; sump, sewage, and effluent pumps; and repair parts such as gaskets, impellers, seals, and repair kits.
A.Y. McDonald was founded in 1856 by Andrew Young McDonald and is today led by his great-great-grandson and CEO, Rob McDonald. According to Family Business Magazine, the company is one of America’s 100 oldest family businesses. A.Y. McDonald is headquartered in Dubuque, Iowa (240,000 sq. ft.) and operates two additional facilities in Iowa and Tennessee.
“This acquisition is a tremendous opportunity for Baker Manufacturing while allowing us to further enhance our focus on the waterworks, natural gas, and plumbing industries,” said Mr. McDonald. “Baker Manufacturing is a trusted source with deep expertise in this market, and we are confident that they will continue to grow and enhance this pump division with the same dedication and quality our customers have come to expect.”
With the sale of its pump division, A.Y. McDonald is now focused on manufacturing water works, plumbing and natural gas products. The company’s waterworks division produces products designed to manage water flow and distribution, including valves, couplings, and service brass fittings that support municipal water supply systems. Its plumbing segment provides fittings, gas meter bars, and accessories for residential and commercial plumbing systems, ensuring efficient and reliable connections in water and gas lines. In the natural gas division, A.Y. McDonald manufactures risers, fittings, and meter bars used in natural gas distribution applications.
“We are thrilled to bring A.Y. McDonald’s Pump Division into the Baker family,” said Mr. Wesdell. “A.Y. McDonald’s rich history and strong reputation in the industry will be a cornerstone of this transition, and we are committed to maximizing the legacy of their pump products while continuing to meet the needs of our valued customers.”
Blue Sage Capital acquired Baker Manufacturing in July 2022, and the acquisition of McDonald Pump is the first add-on acquisition completed under Blue Sage ownership. “The Pump Division of A.Y. McDonald will be an excellent strategic addition to the Baker platform and allows Baker to strengthen its extensive product portfolio and market share,” said Jonathan Pearce, a partner at Blue Sage. “With this acquisition, Baker continues to execute our strategic plan and demonstrates our ability to enhance market share within core competencies. We look forward to continuing to support the team in these initiatives.”
According to a recent report by Grand View Research, the water pump market is anticipated to grow at a compound annual growth rate (CAGR) of 3.8% through 2030, driven largely by increasing demand for efficient water management solutions across agricultural and residential applications. This trend is reinforced by rising population pressures, particularly in water-scarce regions where effective water transfer and management systems are crucial. As residential and agricultural water demands increase, products like those offered by Baker’s Water Systems Division are likely to see sustained demand.
Austin, Texas-based Blue Sage specializes in partnering with founders, families, and management teams as the first round of institutional capital for businesses in the niche manufacturing, environmental solutions, or specialty services industries. The firm typically invests from $20 million to $60 million in control buyout investments and recapitalizations of companies with $5 million to $20 million in EBITDA and $20 million to $150 million in revenue.
© 2024 Private Equity Professional | November 5, 2024
