Speyside Equity acquires Pacific Steel Castings Company August 2014
Speyside Equity is pleased to announce today that it has acquired the operational assets of Pacific Steel Castings Company (“Pacific Steel”). Speyside is partnering with the Alcast Company, a strategic player in the foundry space with whom Speyside has previously worked successfully. The sale to Speyside was approved by the courts under sections 105, 363 and 365 of the bankruptcy code.
Pacific Steel, founded in 1934 and based in Berkeley, California makes carbon, low-alloy and stainless steel castings for U.S. and international customers, mainly for heavy-duty trucks, oil drilling construction equipment and other heavy industrial end-markets. The company currently employs 430 employees and generates close to US$ 100 million in revenue in three plants at the Berkeley site.
Commenting on the acquisition, Speyside partner Jeffrey Stone said: “We are excited to announce our acquisition of Pacific Steel. It is a very capable foundry with a long history of strong relationships with its customers. With its ability to produce castings up to 7,000 pounds, we believe this helps its customers in heavy industry capitalize on the strong demand they are experiencing now and in the foreseeable future.
Speyside’s founding partner, Kevin Daugherty, added: “Pacific Steel represents a return to one of our three primary areas of focus: food, metals and chemicals. We are a long-term investor without a specific hold period, which differentiates us from traditional private equity funds. We think we have the right mind set and level of patience needed for this type of investment.”
About Speyside Equity:
Speyside Equity invests in middle-market industrial businesses with a history of profitability and strong market positions. It has a focus on the industrials, chemicals and food sectors with an affinity for cross-border deals, and spin-offs of large multinationals. Target investments are typically headquartered in developed markets in the United States and Europe, and valued at US$ 20-200 million.
About the Alcast Company:
Alcast Company of Peoria, Illinois, USA is a TS 16949 registered low pressure permanent mold aluminum foundry and CNC machine shop that manufactures and supplies high quality and high precision American made aluminum castings.