Levine Leichtman Capital Partners said Monday that it has agreed to acquire the material handling products business of FMC Technologies. The new company will be rebranded Syntron Material Handling. No financial terms were disclosed; however, CIT Finance, Siemens Financial Services and Ares Capital Corp. will provide senior debt financing for the transaction.
LOS ANGELES, March 24, 2014 /PRNewswire/ — Levine Leichtman Capital Partners (“LLCP”), announced today that it has entered into a definitive agreement to acquire the material handling products business of FMC Technologies, Inc. (NYSE: FTI). The new company will be named Syntron Material Handling, LLC (“Syntron”).
Upon the closing of the transaction, Syntron will be headquartered in Tupelo, Mississippi with operations in Changshu, China, Salt Lake City, Utah and sales personnel in Germany, Mexico, Singapore and Canada. The business is a leading manufacturer of a diversified product line of conveyor and vibratory equipment used to load, transport and feed bulk materials. The products are sold to customers throughout the world in the mining, aggregates, packaging and food industries.
The investment in Syntron will be made out of Levine Leichtman Capital Partners Private Capital Solutions Fund. According to Lauren Leichtman, Co-Founder and CEO of LLCP, “FMC Technologies’ material handling business has been a market leader in its core markets for decades and is known for manufacturing the highest quality bulk material handling equipment throughout the world. We are excited to partner with the experienced senior management team and look forward to supporting the future growth of the company.”
Senior debt financing will be provided by CIT Finance LLC (as Sole Lead Arranger, Sole Lead Bookrunner and Sole Administrative Agent), Siemens Financial Services, Inc. (as Syndication Agent) and Ares Capital Corporation (as Documentation Agent).
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners is a Los Angeles, California-based investment firm that manages approximately $7.0 billion of institutional investment capital through private equity partnerships, various debt and leveraged loan funds. LLCP is currently making new investments through Levine Leichtman Capital Partners V, L.P., Levine Leichtman Capital Partners SBIC Fund, L.P., and Levine Leichtman Capital Partners Private Capital Solutions II, L.P. Prior investments by Levine Leichtman Capital Partners include Santa Cruz Nutritionals, CiCi’s Pizza, Hackney Ladish, Jon Douglas Real Estate Group, and Luminator Technology Group.