Member Article

London investment house buys five US industrials

London investment company, Caledonia Investments plc, have acquired five US industrial businesses from Latshaw Enterprises Inc.

Caledonia has invested $42m in cash at completion, and the five businesses have aggregate sales of approximately $90m and employ more than 450 people in five operating facilities across the US.

The businesses include: Wescon Products Company, an OEM manufacturer of mechanical controls cable assemblies and screw machined components for the gardening sector; Wescon Plastics LLC, a manufacturer of plastic injection moulded parts for the heavy truck industry; MC Electronics Inc, a Californian electrical assembler; Coast Wire & Pastics Inc, a manufacturer of custom electronic wire and cable products; and Anderson & Forrester Inc, a manufacturer of tools for the natural gas and propane industries.

Duncan Johnson of Caledonia commented: “The underlying businesses of Latshaw Enterprises are each established manufacturing operations enjoying strong positions in attractive markets. The businesses are cash generative and our investment has been structured so as to provide a running yield from year one.

“Along with Nova and the Latshaw team we have developed an investment strategy which will see capital value being built and realised over the medium term.

This is the third portfolio acquisition that Caledonia has funded with Nova. Following the success of the first two investments, we are delighted to be working with the Nova team once again. “

Caledonia was advised by Macfarlanes LLP and Catalysis Advisory. Latshaw was advised by Husch Blackwell LLP and William Blair & Company LLC.

This was posted in Bdaily's Members' News section by Tom Keighley .