DexKo Global, a portfolio company of The Sterling Group, has acquired the axle, brake and actuation business assets of Tie Down Engineering. Dean Samuelson, President of Tie Down Engineering, will continue to lead the acquired business.
DexKo Global began when The Sterling Group acquired the Dexter Axle business from Tomkins Industries in November 2012. Dexter – based in Elkhart, IN – is a designer and manufacturer of trailer axles, brake, and suspension assemblies and related replacement parts and components that are used in the utility trailer, recreation vehicle, heavy duty, manufactured housing, agricultural, marine, and specialty trailer markets (www.dexteraxle.com). In January 2016, Dexter Axle acquired AL-KO Vehicle Technology, a Kötz, Germany-based designer and manufacturer of trailer axles, trailer and caravan components, and chassis (www.al-ko.us). The Sterling Group combined the two companies under the umbrella of DexKo Global (www.dexko.com). DexKo Global is led by CEO Fred Bentley.
Tie Down Engineering was founded in 1969 by Chuck MacKarvich and serves the construction, utility, industrial & marine markets. With the conclusion of this transaction with DexKo Global, Tie Down will continue to operate, providing products and services through its manufactured housing, roofing, marine and industrial laser divisions. Tie Down is based in Atlanta (www.tiedown.com).
“By adding Tie Down’s axle, brake and actuation products to our marine product portfolio, we continue to improve our industry leading portfolio of customer solutions. This acquisition broadens our aftermarket offering and as all of our recent acquisitions have done, allows us further growth in adjacent areas,” said Mr. Bentley. “I want to congratulate Chuck on the great business he built and we look forward to taking it to a new level of performance.”
Prior to the close of the buy of the Tie Down Engineering assets, DexKo Global acquired Rockwell American from Polar Corporation, a portfolio company of American Industrial Partners, in September 2016. Rockwell American is a manufacturer and distributor of trailer components, including axles, leaf springs, fenders, tires and wheels, jacks and couplers, and a variety of other components. Rockwell American has 400 employees, five manufacturing locations and operates 16 distribution branches across the US and is headquartered northwest of Ft. Worth in Azle, TX (www.rockwellamerican.com).
DexKo Global now has annual revenues that exceed $1 billion. It has been reported that The Sterling Group has engaged investment bank JPMorgan Chase to sell the company which could realize an enterprise value of approximately $1.6 billion.
The Sterling Group targets controlling interests in manufacturing, industrial services and distribution companies that have enterprise values from $100 million to $500 million. The firm emphasizes an operational approach in partnership with management teams to grow and improve the companies it acquires. Sterling was founded in 1982 and is headquartered in Houston (www.sterling-group.com).
© 2017 Private Equity Professional | February 2, 2017