XLCS Partners Facilitates United Gasket's Acquisition by All-State Industries

In a significant development in the manufacturing sector, XLCS Partners, a prominent middle-market investment bank, has successfully guided United Gasket Corp. through its acquisition by All-State Industries, Inc. This move, announced on February 25, 2025, positions United Gasket for robust future growth while reinforcing All-State's capabilities in supplying non-metallic components across various industries.

Background on the Companies

Founded in 1940 and based in Cicero, Illinois, United Gasket has established itself as a leading manufacturer of custom non-metallic components, including adhesive-backed gaskets, felts, and various flexible parts. Its product offerings are critical across diverse sectors such as electronics, rail, non-engine automotive, HVAC, pumps, and lighting, which highlights its versatility and strategic importance within the market.

Meanwhile, All-State Industries, located in Des Moines, Iowa, was founded in 1974 and is recognized as a leading supplier of non-metallic components for Original Equipment Manufacturers (OEMs). The company specializes in products that address sealing, acoustics, thermal management, motion control, and impact absorption applications, catering to a range of operational needs.

The Advisory Process

According to Mark Pahios, CEO of United Gasket, the expertise offered by XLCS Partners throughout the acquisition process was invaluable. He highlighted their deep understanding of both United Gasket's business objectives and the broader market context, which played a pivotal role in identifying All-State as the ideal partner. Pahios noted, “Their team worked tirelessly to find the perfect partner for United Gasket. Thanks to their dedication, we are now poised for long-term growth.” Notably, Mark Pahios will continue to lead the United Gasket division under the All-State umbrella, ensuring continuity in leadership and strategic direction.

The completion of this transaction marks a noteworthy milestone, being the fourth acquisition made by All-State since its partnership with Blue Sage Capital, an investment firm based in Austin, Texas, in 2019. With this acquisition, the combined entity emerges as one of the largest suppliers of non-metallic components in its respective markets, boasting fourteen operational facilities throughout the United States and Mexico.

Looking Forward

With XLCS Partners acting as the exclusive M&A advisor to United Gasket, the transaction was spearheaded by Anthony Contaldo, a partner at the firm, alongside Eric Schoendorf, a vice president. The deal culminated successfully on December 31, 2024, setting the stage for promising prospects ahead.

As both companies look to leverage their strengths, this strategic acquisition is set to enhance operational efficiencies while better servicing their clients’ needs. For industry stakeholders, this merger signals a pivotal shift in the non-metallic components landscape, likely driving innovation and competitiveness.

In conclusion, the successful advisory role played by XLCS Partners showcases their commitment to facilitating meaningful growth opportunities in the business landscape while highlighting the strategic vision of both United Gasket and All-State Industries in delivering high-quality solutions to their diverse customer bases.