Industrial Growth Partners has sold Xaloy Superior Holdings to Nordson Corporation for $200 million. Xaloy, headquartered in New Castle, Pennsylvania, is a provider of mission-critical plastic melt-stream components serving global OEM manufacturers of plastification equipment and plastics processors.
Industrial Growth Partners is pleased to announce the completion of the sale of Xaloy Superior Holdings, Inc. to Nordson Corporation (Nasdaq: NDSN) for $200 million in a transaction that closed on June 21, 2012.
Xaloy, headquartered in New Castle, Pennsylvania, is the world’s leading provider of mission-critical plastic melt-stream components serving global OEM manufacturers of plastification equipment and plastics processors. Originally founded in 1929, Xaloy was a pioneer in the use of bimetallic materials to improve the performance of plastic processing equipment. Today, the Company is the world’s leading manufacturer of barrels, screws, melt pumps, screen changers and other related equipment that are critical to the entire plastics melt-stream for both injection molding and extrusion applications.
Original Acquisition Details
IGP, together with members of the management team and certain outside investors, purchased Xaloy on September 8, 2008. The transaction created a solid platform for Xaloy to build on its leading market share in North America, continue its global expansion and pursue selective acquisition opportunities. During IGP’s ownership, the Company significantly strengthened its senior leadership team, restructured its go-to-market selling strategy, expanded its operations in Europe and Asia, and implemented numerous productivity and customer service enhancements. In addition, during IGP’s ownership, Xaloy completed the add-on acquisition of Spirex Corporation, another leading North American provider of wear components used in the plastics melt-stream.
Ron Auletta, President & CEO of Xaloy, commented:
“IGP’s support of our company as we re-positioned the business for long-term growth and sustainable profitability was crucial. They were an ideal partner as we expanded overseas, particularly in Thailand and Germany, added several senior management team members and completed major operational improvement programs. IGP was also instrumental in the strategic add-on acquisition of Spirex, which complemented Xaloy’s existing portfolio of product technologies and improved our North American manufacturing footprint. Ultimately, these initiatives enabled us to further solidify our competitive position, dramatically improve our cost structure and position the business for strong growth in the years ahead.”
IGP, founded in 1997, is a San Francisco-based private equity investment firm with $1.3 billion of equity capital in three funds currently under management. The firm invests exclusively in middle-market companies in the manufacturing sector in partnership with management.