CHICAGO – June 28, 2007 – Saugatuck Capital has acquired Femco Machine Company, a privately held equipment repair and maintenance company. Transaction terms were not disclosed.
RSM EquiCo Capital Markets initiated the transaction, led the negotiations and acted as exclusive financial advisor to Femco.
“Saugatuck Capital was a natural fit with Femco Machine Company for several reasons, not the least of which is the firm’s past experience in the industrial equipment outsourcing segment,” said Brian Boyle, managing director of RSM EquiCo Capital Markets and head of the firm’s Chicago office. “Saugatuck also brings needed operational experience, especially as Femco continues its international expansion into regions in Europe, Africa, South America, Canada, Mexico and China.”
Boyle continues, “While Saugatuck was attracted to Femco’s organic growth potential (both domestically and internationally), the firm is also excited about the industry itself and believes its high level of fragmentation will create multiple add-on opportunities for future acquisitions."
About RSM EquiCo Capital Markets
RSM EquiCo Capital Markets LLC (www.rsmequico.com) is a global provider of investment banking services to private and public companies with annual revenues of up to $1 billion. The firm brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.
As specialists in facilitating mergers and acquisitions, structuring recapitalizations, providing access to capital markets and offering fairness opinions, RSM EquiCo Capital Markets plays a noteworthy role in the “middle-market” field. These services include facilitating the acquisition of North American companies and raising capital for a wide variety of purposes, ranging from acquisitions and leveraged buyouts to balance sheet restructuring.
RSM EquiCo Capital Markets is licensed by the SEC and all state securities authorities, and is a member of the NASD and SIPC. The firm’s international headquarters are located in Costa Mesa, Calif. It also has offices in Chicago, Boston, New York and London.
About Femco Machine Company
Femco Machine Company was started in 1965 and provides repair services and produces aftermarket and OEM replacement parts for customers that operate heavy equipment and vehicles. The company’s specialized capabilities allow it to manufacture and work on exceptionally large components and machinery. Femco provides service and parts to the crane and dragline industry, recycling facilities, aggregate and concrete companies, metal-stamping shops, sugar cane harvesters, the mining industry and other heavy industrial markets. The company also operates a fleet of mobile machine shops, which are staffed by technicians and contain specialized machining equipment. The company provides this service for customers that require immediate repair or have equipment that is impractical to move. Femco sells a high volume of aftermarket parts to the mining industry, which is driving the company’s international growth in Africa, Europe, South America, Mexico, Canada and China.
About Saugatuck Capital
Saugatuck Capital is a private investment firm specializing in middle-market acquisitions and growth equity investments. For two decades, the firm has been dedicated to the philosophy that exceptional management teams, in partnership with Saugatuck's capital and expertise, can build companies of outstanding value. Drawn from the fields of operations, consulting, and finance, Saugatuck's principals offer broad, comprehensive insight into all facets of a company's organization. In addition, the principals are supported by a board of advisors that provides additional resources and expertise. Saugatuck, which invests in a variety of industries and niche sectors within industries, is the lead investor in the majority of its investments but will co-invest in certain situations. An attractive buyout candidate should provide an opportunity for earnings enhancement through improved operations and follow-on acquisitions. Typically, targets have strong cash flows and market position, although Saugatuck will consider investments in companies challenged by excessive leverage, ineffective management, or misdirected business strategy. Buyouts typically range from $15 million to $200 million in purchase price. Saugatuck has successfully deployed a "core company" strategy in the past to take advantage of fragmented industries in which the consolidation of smaller companies into a larger company can provide an attractive return on capital. In addition to capital, Saugatuck provides these portfolio companies with access to resources and expertise often unavailable to small middle-market companies.
CONTACT:
RSM EquiCo Inc.
Todd Cooley, Director of Communications
714.327.8865
tcooley@rsmequico.com