- Central Conveyor Company based in Michigan
- Management retains stake in company
- New State closes third acquisition of 2014
The deal marks the third transaction of 2014 for New State Capital Partners, which typically invests equity checks of $5 million to $35 million in the industrial, health care and business services sectors.
David Blechman, partner and co-founder of New State Capital Partners, said the New York and Dallas-based firm sourced the Central Conveyor deal through an advisor, PMCF, outside of a traditional auction process.
“Once we got together with the owners, we both agreed it was a good fit,” Blechman said. “This is a well-run, profitable and growing business with an outstanding management team.”
A source familiar with the deal said Central Conveyor Company has been generating annual average EBITDA of more than $10 million. Blechman declined to comment on any specifics of the deal.
Central Conveyor Company CEO Rick Wells will continue to lead the company, together with the existing management team. The company’s founders and management retained an ownership position as part of the deal.
Based in Brighton, Mich, Central Conveyor Company works with automotive manufacturers on conveyor systems that are integrated with manufacturing lines. It’s also growing its product offerings for warehouse automation. Expansion may also come by selling in various overseas markets. It’s worked on projects in the U.S., Canada, Mexico and the United Kingdom.
Besides Central Conveyor Company, New State Capital Partners also closed on a deal to acquire Gautier Steel and United Medical Systems, a specialist in transportable medical services, in 2014.
Correction: A previous version of this story incorrectly reported Central Conveyor’s annual EBITDA at around $5 million, rather than more than $10 million. The story has been updated.