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The eBearing News
December 2, 2004
Genstar Acquires Colfax Power Transmission
copyright © 2004 eBearing Inc.
Private middle-market equity firm Genstar Capital LP (USA) has acquired Colfax Power Transmission Group
(USA) from privately-held Colfax Corporation (USA).
The acquisition comes hard on the heels of Genstar's early October purchase of specialty bearing producer
Kilian Manufacturing Corp. (USA) from The Timken Company (USA). The two companies represent a combined purchase
cost of USD $200 million.
• article: Genstar and management team acquire Kilian from Torrington
Like Genstar, Colfax Corporation is a manufacturing acquisition and turnaround company. Founded in 1995,
Colfax Corporation, "acquires and builds industrial manufacturing companies into world-class organizations, using our
proprietary Colfax Business Systems management process." Divesting the entire Power Transmission operation
is Colfax's largest transaction to date, leaving it with only the Pump Group of five companies headquartered
in North Carolina.
Colfax PT designs, manufactures and distributes a wide range of power transmission products targeted to a variety
of applications from turf and garden, food and beverage, material handling, and other industrial end markets.
Colfax Power Transmission includes a many companies and brands: Warner Electric, Boston Gear, Formsprag,
Stieber, Ameridrives Couplings, Wichita Clutch, Nuttall Gear, Delroyd Worm Gear, Industrial Clutch and
Marland Clutch.
Genstar said is establishing a new business entity, Altra Industrial Motion, Inc., to combine
Kilian and Colfax PT. Altra Industrial Motion's headquarters will be the former Quincy, Massachusetts,
home office of Colfax Power Transmission.
While the Colfax PT name conflicts with the existing Colfax Corp., Kilian and the various brand names
under Colfax PT are expected to continue in the marketplace.
As a private equity firm, Genstar arranged Altra Industrial Motion's ownership. Altra issued $165 million in
senior secured noted led by Jefferies & Co. Other equity came from Genstar, its affiliates, Caisse de depot
et placement du Quebec, and the management team itself. Wells Fargo will provide a revolving credit facility.
Altra's first CEO is Michael Hurt, who retired as President of TB Wood's (USA) in fall 2003 after 13 years
with the company. Wood's designs, manufactures and distributes power transmission products. Among a wide variety
of other products, TB Wood's manufactures Sure-Grip brand split-flange bushings.
Altra Industrial Motion did not comment on the position Charles Nims, President of Colfax PT, may or may
not have in the new organization.
For the 12 months ended October 1, 2004, Colfax PT and Kilian had combined sales of $336 million, and net
earnings of $36 million.
Mr. Hurt said, "We are excited about the creation of Altra Industrial Motion. Our portfolio of industrial
companies, which includes Warner Electric, Boston Gear, and Kilian, has leading brand and market share
positions with our diversified customer base. The strength of these brands combined with our experienced
management team and international sales and distribution network creates an outstanding platform for future growth."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Copyrighted material; unauthorized reproduction prohibited.
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