In the USA, Davis-Standard has been acquired by its management and an investor group led by private equity firm Hamilton Robinson for an undisclosed sum. Davis-Standard’s strategy is to grow its global converting and extrusion systems businesses, while former owner Chemtura Corp will focus instead on its speciality chemical business.
It is only 18 months since Davis-Standard merged with Black Clawson Converting Machinery. “By any measure, the integration of these two companies has been a tremendous success and has paved the way for this transaction,” says Charles Buckley, president of Davis-Standard. “We will continue expanding our technological leadership position to fulfill our vision of ‘Converting Customer Ideas into Successful Products.’”
The company has facilities in the USA, Germany and the UK. It is a leading manufacturer of extrusion systems, feedscrews, barrels, and process controls for the flexible web converting, plastics processing and rubber industries.
The new ownership structure will be led by the existing management team and the company’s financial strength will be preserved under the new capital structure. “Not only will the existing management team remain in place, it will also own more than 20 per cent of the common equity,” reveals Charles Buckley. “This is a very important ingredient for the future success of the company. A management team thinking and acting as owners is an empowered leadership team.”
The management ownership ranks include both senior executives and managers, and the company “intends to offer the rewards of ownership to even more managers in the near future”.
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