News: Press Releases
Xaloy Inc. Completes Management-Led Buyout
(Boston, MA, March 9, 2004) ΠXaloy, Inc., formerly a Saurer Group company, has been acquired by its management team in partnership with Baird Capital Partners of Chicago, Illinois. Key Principal Partners, L.L.C. provided additional equity and subordinated debt; Harris Trust & Savings Bank provided the senior debt. Xaloy management made a significant equity investment. Newbury, Piret & Co., Inc. acted as exclusive financial advisor to Saurer in this transaction and in two related transactions.
In August 2003, Xaloy acquired New Castle Industries, a $24 million Pennsylvania-based competitor, for $17 million. A few months later, Xaloy divested its European barrel and screw business. This combination of moves, according to CEO Walter Cox, "achieved our consolidation objectives by acting as a buyer in North America and acting as a seller in Europe." Newbury, Piret assisted Saurer in evaluating and executing the consolidation strategy as exclusive financial advisor.
"We are excited to partner with such a strong and well-regarded management team as Xaloyçs," stated Andrew Brickman, a Partner at Baird Capital Partners. "With its leading market position, global sales and manufacturing presence and technical and manufacturing expertise, Xaloy represents an ideal investment for Baird Capital Partners."
"Walter Cox and his team have accomplished a remarkable goal: building a leading company through a difficult economic period," stated Alan Fullerton, Vice President of Newbury, Piret. "The strategic moves taken this past year repositioned the business, creating this opportunity for management and their partners, and strengthening the companyçs ability to serve its customers."
Hugh Taylor, Managing Director of Newbury, Piret, stated "Saurerçs support of Xaloy throughout this process was critical to developing and completing this transaction. Saurerçs management worked closely with Xaloy management and Newbury, Piret to effect a series of transactions critical to the divestiture of the Xaloy subsidiary."
Xaloy continues to be committed to making strategic acquisitions which fit the companyçs business strategy. The company has over 500 employees and annual revenues of approximately $60 million.
About Xaloy, Inc.
Xaloy is the worldçs leading manufacturer of process systems and components for plastics molding and extrusion machinery. The company supplies bimetallic barrels, high-performance screws and precision-engineered nozzles to machinery builders and plastics processors around the globe from its plants in the U.S. and Thailand.
About Baird Capital Partners
Baird Capital Partners provides late-stage growth capital or change-of-control capital to U.S.-based middle market companies in the areas of Industrial Products and Technology, Business Services, Communications, Consumer and Life Sciences / Health Care. Baird Capital Partners is the private equity affiliate of Robert W. Baird & Co., an international wealth management, investment banking, asset management and private equity firm.
About Key Principal Partners
Key Principal Partners (KPP) is a $1 billion private investment firm offering both junior and venture capital lines of investing. Affiliated with KeyCorp, a financial services firm headquartered in Cleveland, KPP can provide $5-30 million to middle market companies seeking either non-controlling or controlling investments.
About Newbury, Piret & Company, Inc.
Founded in 1981, Newbury, Piret & Company, is a leading Boston based investment banking firm providing Corporate Finance services including, Mergers & Acquisitions, Equity and Debt, Strategic Advisory, and Valuations. The firm focuses on expanding public and private middle market companies in the business services, technology, healthcare services and manufacturing industry sectors. www.newburypiret.com.
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