May River Capital, a Chicago-based private equity firm focused on
lower middle market industrial growth companies, announced today that it has
acquired Cablevey® Conveyors, a global manufacturer of tubular drag conveyor
systems based in Oskaloosa, Iowa. Cablevey is a market-leader in enclosed
conveyance systems, with installations in more than 65 countries. The company’s
technology is known for food-safe, efficient, and low-energy consumption
performance for some of the most demanding applications in the material
handling sector.
“Cablevey’s focus on solving conveyance application challenges using our
proprietary cable drag technology, and the resulting dramatic growth has
positioned the company as an anchor asset to build a larger conveyance
platform,” said Cablevey CEO Gary Hall. “The additional investments now
possible with May River allow us to continue to increase market share with
existing and top tier customers in our core food and beverage sectors,
including tree nuts, coffee and pet food, as well as expand in other growth
markets like pharmaceuticals.”
“Gary and I could not be happier for the employees, the Oskaloosa, Iowa,
community and customers of Cablevey, and we are thrilled to partner with the
May River team,” said Cablevey President Phil Hall. “We look forward to
further building upon Cablevey’s 50-plus year history of developing and
bringing new product innovations to market, such as our new 8” drag conveyance
system that adds tremendous value to those who rely on Cablevey to deliver
clean, fast and cost-effective conveying solutions.”
“It’s truly a privilege and opportunity to lead a business like Cablevey and
the dedicated Cablevey team,” explained Brad Sterner, who will succeed Gary
Hall as Cablevey CEO. “Gary, Phil and I are looking forward to working
through the transition as we collectively turn our attention to the next phase
of the company’s growth.” Sterner will continue as Executive Chairman of
Advanced Material Processing (AMP), a May River “sister” platform specializing
in material processing equipment for regulated end markets. This “sister”
relationship will offer potential synergies with Cablevey that include many
shared customers in the food, pharmaceutical and chemical end-markets.
“We are excited about the specialty conveyance sector and attractive high
growth end markets served by Cablevey and the highly complementary AMP process
equipment platform,” explained May River Partner Steve Griesemer. “As the
handling and process industries continue to expand, leading end users in the
food and beverage, pharmaceutical and chemical verticals seek to align with
innovative partners that can be counted upon to deliver market-leading
solutions. Cablevey will serve as a strong foundation within the material
handling segment for delivering high-impact solutions to these global,
blue-chip customers.”
Hall said the timing of the announcement is meaningful, as the acquisition
closed on December 22, the exact date of the company’s 50th anniversary.
“Achieving such a significant milestone serves as a reminder of our commitment
to our employees, customers and community,” added Hall. “In fact, Cablevey will
continue to operate in Oskaloosa and contribute to our local Mahaska County
economy as we have every day for the past 50 years.”
Winston & Strawn served as legal counsel to May River. NCP Inc. served as
financial advisor and Belin McCormick served as legal counsel to Cablevey
Conveyors and its shareholders.
About May River Capital
May River Capital is a Chicago-based private equity firm focused on
investing in lower middle-market, industrial growth companies. May River
Capital invests in high-quality industrial growth businesses, including
precision manufacturing, engineered products and instrumentation, specialized
industrial services, and value-added industrial distribution services. For more
information, please visit mayrivercapital.com.
About Cablevey Conveyors
Cablevey Conveyors is a global specialty conveyor manufacturer that designs,
engineers, assembles and services tubular drag cable and disc conveyor systems.
With customers in more than 65 countries, the company specializes in moving
materials for food/beverage and industrial powder processors that seek
food-grade conveying performance with systems that are clean, fast,
energy-efficient and cost-effective. Learn more at www.cablevey.com.
