#United States #New York #American Securities #MW Components #CPM Holdings

American Securities Finalizes Strategic Sale

American Securities LLC, a prominent U.S. private equity firm, has recently announced a significant development in its business strategy. The firm has entered into a definitive agreement to sell two of its portfolio companies, CPM Holdings Inc. and ASP MWI Holdings Inc. (commonly referred to as MW Components), to Rosebank Industries in a transaction valued at an enterprise value of $3.25 billion, which includes the potential for up to $200 million in earnouts.

This transaction underscores American Securities' long-standing objective of scaling up market-leading industrial businesses in the United States. The firm's noteworthy approach combines working closely with management teams to foster growth while enhancing operational efficiency and strengthening competitive positioning within the sectors they operate.

Focus on Growth and Innovation

Since American Securities invested in CPM Holdings in November 2018, the company has worked diligently to solidify its status as a leader in its field. This effort has included shifting the company’s focus towards higher-margin, recurring aftermarket business opportunities while simultaneously capturing shares of the rapidly growing renewable energy market. Significant investments have been made into people and systems, positioning CPM for future success.

The growth trajectory of CPM can be attributed to solid organic performance and strategic acquisitions. In fact, the company has completed eight transactions, notably acquiring Dorssers and Jacobs, which are well-established players in the North American aftermarket sector. Furthermore, through its innovative center, CPM introduced Monarc—an advanced technology enabling customers to produce clean label products more efficiently and safely.

MW Components has experienced similarly impactful growth since partnering with American Securities in September 2017. The company has actively invested in talent, equipment, and technology, particularly in key markets like aerospace, defense, electronics, and semiconductors. Notably, these strategic segments witnessed a revenue increase from 9% at the time of acquisition to 25% at the time of the exit.

Additionally, MW Components has made strides in enhancing its digital capabilities, developing proprietary software known as “SNAP,” which simplifies the rapid quoting process for clients. This has not only supported organic growth but has also been complemented by nine additional acquisitions, expanding its market reach and manufacturing capabilities. The company now operates under three divisions: Fasteners, Springs, and Precision Components.

Leadership Insights

Michael Fisch, the Founder and CEO of American Securities, highlighted the fruitful partnership with the management teams of both CPM and MW Components. He praised the ability of Dave Webster, CEO of CPM, and Tom Amato, CEO of MW Components, to create strong platforms for sustainable growth. Their leadership has been pivotal in positioning both businesses to pursue the next phase of development with Rosebank.

Meanwhile, Michael Sand, a Partner at American Securities, expressed pride in CPM's achievements during their partnership, noting how the company has broadened its capabilities and ventured into new territories.

In response, Dave Webster acknowledged the instrumental role of American Securities in providing expertise that has helped elevate CPM’s offerings and strengthened the organization as a whole. Similarly, Thomas Amato of MW Components commended the firm's guidance and operational support, which facilitated significant growth and redefined the company's strategic positioning.

A Promising Future Ahead

The divestiture is poised to close in the second quarter of 2026, pending customary closing conditions. With Baird, Evercore, and Goldman Sachs acting as financial advisors, and Weil and Hunton Andrews Kurth providing legal advice, this deal is a testament to the strategic foresight of American Securities.

As companies shift into new ownership under Rosebank Industries, CPM and MW Components will undoubtedly leverage their past successes and prepare for a future filled with potential growth opportunities. This transformative yet prudent approach illustrates American Securities’ commitment to fostering long-term value creation for all stakeholders involved.

American Securities has been at the forefront of private equity since its inception in 1994, focusing primarily on industrial and business-to-business services and managing around $23 billion in assets. As a trusted partner in driving growth, the firm continues to exemplify how active management and investment in innovation can pave the way for business success.