Transaction Overview
- Represented Baird Capital Partners on the sale of its portfolio company Kason Corporation (“Kason”) to May River Capital.
- Kason is a leading designer and manufacturer of highly-engineered industrial process control equipment for the separation, screening and thermal/moisture control of dry solids and slurries.
Key Observations
- May River’s existing portfolio company, Marion Process Solutions, custom manufactures different processing solutions to similar end-markets and customer types, but did not compete directly with Kason. May River saw an avenue to create a larger focus on material processing equipment by combining industry-leading, complementary companies. The two companies have meaningful synergy opportunities to scale the operations of a combined entity. The companies were combined as Advanced Material Processing.
Drivers of Interest
- Strong brand name with leading position in core markets.
- Reputation for high standard of service supported by engineer-to-engineer relationships between the Company and its customers.
- Diverse, global end markets with significant long-term growth potential – particular attraction to food and beverage.
- Large, non-concentrated blue-chip customer base.
- Substantial aftermarket demand to complement new equipment segment.
- Stable long-term financial results with intriguing growth prospects.
- Opportunity for platform growth through acquisition.