Kentucky Trailer, which is backed by Alleghany Capital, has agreed to acquire a majority stake in Cedar Rapids, Iowa-based CEI Equipment Company, a provider of aluminum feed transportation equipment. No financial terms were disclosed.
NEW YORK, NY, December 20, 2018 – Alleghany Capital Corporation (“Alleghany Capital”), a wholly-owned subsidiary of Alleghany Corporation, today announced that its subsidiary, R.C. Tway Company, LLC (dba Kentucky Trailer), a leading manufacturer of custom trailers and truck bodies serving a variety of end markets, has reached a definitive agreement to acquire a majority interest in CEI Equipment Company LLC (“CEI” or the “Company”). Headquartered in Cedar Rapids, Iowa, CEI is a global industry leader in the production and service of a broad range of aluminum feed transportation equipment. CEI is led by management members, Dan McDowell, Jim Ross, and Jim Stoelk.
Gary A. Smith, Sr., President and Chief Executive Officer of Kentucky Trailer, commented, “We look forward to partnering with Dan, Jim, and Jim to further expand CEI’s leadership position within the feed transportation equipment industry. With this experienced team continuing to lead CEI post-transaction, the Company’s day-to-day operations will not be impacted. However, with CEI joining the Kentucky Trailer family, we see meaningful avenues for both companies to accelerate growth as we continue to deliver the best solutions to our customers. In addition, we believe this transaction will provide exciting opportunities for both companies’ dedicated associates.”
CEI’s management members added, “CEI and Kentucky Trailer are driven to be the best in the world at design, build, and service solutions in the transportation equipment industry. As we pursue our next stage of growth, we are pleased to partner with Kentucky Trailer and Alleghany Capital, both of which represent natural strategic partners for us as we seek to capitalize on the numerous opportunities we see in our market.”
David Van Geyzel, President and Chief Executive Officer of Alleghany Capital, added, “This transaction further expands Kentucky Trailer’s capabilities, scale, and geographic reach within the custom trailer and truck body industry and is consistent with Kentucky Trailer’s strategy of building leading positions in specialized transportation equipment markets. Alleghany Capital looks forward to supporting Kentucky Trailer and CEI in the years to come as they pursue both organic and acquisition growth opportunities together.”
The transaction, which is subject to customary closing conditions, is expected to close by year-end 2018.
Olshan Frome Wolosky LLP acted as legal counsel to Kentucky Trailer. Lincoln International advised CEI on the transaction and Belin McCormick PC acted as legal counsel to CEI.
About Alleghany Capital Corporation
Alleghany Capital Corporation sources, executes, and oversees industrial and non-industrial investments and acquisitions for its parent company, Alleghany Corporation (NYSE:Y). Alleghany Capital’s industrial businesses include: (i) Bourn & Koch, Inc., a manufacturer/remanufacturer of specialty machine tools and supplier of replacement parts, accessories, and services for a variety of cutting technologies; (ii) R.C. Tway Company, LLC (dba Kentucky Trailer), a manufacturer of custom trailers and truck bodies for a variety of end markets; (iii) WWSC Holdings, LLC, a structural steel fabricator and erector for commercial, manufacturing, and transportation infrastructure projects; and (iv) Wilbert Funeral Services, Inc., a leading provider of products and services for the funeral and cemetery industries and precast concrete markets. Alleghany Capital’s non-industrial businesses include: (i) Concord Hospitality Enterprises Company, a hotel management and development company; (ii) IPS-Integrated Project Services, LLC, a design, engineering, procurement, and construction management company focused on the global pharmaceutical and biotechnology industries; and (iii) Jazwares, LLC, a global toy, entertainment, and musical instrument company. For additional information about Alleghany Capital Corporation, please visit www.alleghanycc.com.
About R.C. Tway Company, LLC
R.C. Tway Company, LLC is the parent company of four operating segments: (i) Kentucky Trailer Manufacturing (KTM), which designs, builds and manufactures custom trailers and truck bodies for the moving and storage, snack food, package delivery, and logistics industries as well as other niche markets; (ii) Kentucky Trailer Services (KTS), which delivers complete repair, reconditioning, paint, graphics, and other services for truck bodies, drop frames, and expandables; (iii) Kentucky Trailer Specialty Vehicles (KTSV), which designs, builds, and services trailers and custom specialty vehicles for mobile medical, military/government, mobile marketing, motorsports, and other niche markets; and (iv) Kentucky Trailer Finance (KTF), which provides the company’s customers rental, lease, and financing options for select products and markets. For more information about Kentucky Trailer, please visit www.kytrailer.com.
About CEI Equipment Company LLC
With over 40 years of experience, CEI Equipment Company LLC is recognized as an industry leader for design innovation and quality manufacturing of aluminum feed trailer and feed body transportation equipment. Today, CEI produces a broad range of aluminum feed transportation equipment that is used throughout the world. CEI has a full-service facility capable of repairs, reconditioning, and rebuilding feed transportation equipment of all makes and models. For more information about CEI, please visit www.ceipacer.com.