American Securities acquires CPM

American Securities L.L.C., a U.S. private equity firm, has closed on its acquisition of CPM Holdings Inc. in partnership with the company’s management team.

CPM is a leading global supplier of engineered process equipment to the animal feed, oilseed processing, extrusion and thermal processing markets. Financial terms of the transaction were not disclosed.

Headquartered in Waterloo, Iowa, CPM designs, engineers and manufactures a broad variety of branded pellet mills, oilseed processing equipment, twin screw extruders and industrial scale thermal processing equipment. The company serves a global base of more than 5,000 customers annually from facilities in Europe, Asia, Latin America, and North America. CPM produces premier process equipment and engineered systems that provide customers a superior level of operating efficiency, durability and reliability, maximizing process performance and machine uptime. This has allowed the company to maintain leading market positions across each of its end markets.

Ted Waitman, president and CEO of CPM, said: “CPM has a strong history of market leadership. We are excited about our new partnership with American Securities to continue investing in product innovation, geographic expansion and growing our aftermarket sales across all of our segments.”

“We are pleased to partner with Ted and the rest of the CPM management to continue to build upon their leading position in the animal feed, oilseed processing, extrusion, and thermal processing industries,” said Michael Sand, a managing director of American Securities. “The company’s leading technology, brand reputation, and long-standing customer relationships make CPM a strong fit for our investment strategy.”

Weil, Gotshal & Manges L.L.P. served as legal counsel to American Securities, and Mayer Brown LLP served as legal counsel to CPM with respect to the transaction. BMO Capital Markets Corp. acted as a financial adviser to American Securities, and Jefferies L.L.C. acted as financial adviser to the company with respect to the transaction. Cypress Associates L.L.C. also served as financial adviser to the CPM board and its majority shareholder.