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Stellex Capital acquires two manufacturing firms from Arcosa

EditorEmilio Ghigini
Published 08/05/2024, 08:11 AM
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NEW YORK & PITTSBURGH - Stellex Capital Management, a private equity firm specializing in middle-market investments, has entered into a definitive agreement to acquire McConway & Torley (M&T) and Standard Forged Products (SFP) from Arcosa , Inc. (NYSE: NYSE:ACA). The transaction is expected to be finalized in the third quarter.

The acquired entities, both based in Pittsburgh, Pennsylvania, have a long-standing history dating back to 1869. They are known for their production of cast, forged, and machined products for rail and industrial customers.

With this acquisition, the companies are anticipated to enhance their growth, exploring both organic and acquisitive strategies. This includes seeking opportunities that complement their current capabilities and customer base, as well as expanding into new markets.

Michael Livanos, Managing Director at Stellex, expressed confidence in the future of the newly acquired companies, emphasizing the firm's commitment to investing in their growth. The acquisition is consistent with Stellex's strategy to leverage operational expertise to foster expansion within critical manufacturing sectors.

Moreover, it underscores the firm's dedication to the Pittsburgh area, following the opening of their local office in 2022 and marking their second investment in a Pittsburgh-based company.

In line with the acquisition, Stellex has appointed David Meyer as CEO of the combined entity. Meyer brings over 25 years of industry experience and is set to collaborate with the existing management team, which is noted for its long tenure and expertise in engineered solutions.

Meyer aims to build upon the company's 150-year legacy, maintaining high-quality service for existing customers while seeking new growth avenues.

Legal counsel for Stellex in this transaction was provided by Proskauer Rose, while Arcosa was advised legally by Gibson, Dunn, & Crutcher and financially by Evercore.

Stellex Capital, with offices in New York, Pittsburgh, Detroit, and London, manages over $2.8 billion in assets. The firm focuses on investments that can benefit from its hands-on, operationally intensive approach, with industry expertise in sectors such as aerospace, defense, transportation, manufacturing, and tech-enabled services.

The information for this report is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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