EdgePoint advises PT Tech and AeroTorque in Sale to The Timken Company
BEACHWOOD, Ohio, May 25, 2017 /PRNewswire/ -- EdgePoint Capital announced that it served as the exclusive financial advisor to EBO Group in its sale of its subsidiaries PT Tech, Inc. and AeroTorque Corp (collectively, "PT Tech" or the "Company") to The Timken Company. Terms of the transaction were not disclosed.
Headquartered in Sharon Center, OH, PT Tech is the premier designer of industrial clutches, brakes, and power take offs used in specialty equipment for the mining, wood waste recycling, aggregate processing, metal processing, and wind power industries. The product line includes a variety of torque control and engagement products that protect high value equipment from torsional forces, including wet and dry brakes, torque limiting clutches, HPTO engine clutches, and gearboxes. With a value proposition based upon customized engineering and product design for specific applications, the Company has been a trusted manufacturing partner to its customers for decades. The AeroTorque product focuses on damping of damaging loads in wind turbine drivetrains.
The Timken Company engineers, manufactures and markets bearings, gear drives, belts, chain, couplings, and related products, and offers a spectrum of powertrain rebuild and repair services. Known for its quality products and collaborative technical sales model, Timken posted $2.7 billion in sales in 2016 and has more than 14,000 employees operating in 28 countries.
The acquisition of PT Tech complements the Power Transmission business of Timken and further establishes Timken as a complete supplier of motion control products.
Regarding the transaction, Timken's President and CEO Richard Kyle said in a press release "this acquisition allows us to better serve our customers by offering a broader, more diverse package of products and services. The addition of PT Tech will also provide ample growth opportunities, as we leverage our portfolio to drive growth across complementary markets around the world."
"This transaction is a textbook example of synergy value created by an acquisition," said Paul Chameli, Managing Director of EdgePoint Capital. "Timken's vast end market and international reach represent an ideal outlet and untapped opportunity for which to sell high quality PT Tech products. The alignment of these two entities creates significant opportunity to accelerate the PT Tech growth trajectory."
Regarding the services provided by EdgePoint, EBO Group Board Director Ryan Yerkey stated "EdgePoint was an excellent advisor to EBO Group as we navigated this critical transaction. EdgePoint helped us organize our value proposition, identify the most likely interested parties, communicate those attributes to the market, negotiate compelling offers, and manage a sale process that was strategic and growth-oriented in nature. We are pleased with how EdgePoint supported us from start through Closing. This is the second transaction for which EdgePoint advised EBO Group, Inc. in the last 36 months, and I believe both transactions achieved results at or above our expectations."
About EdgePoint
Located in Cleveland, Ohio, EdgePoint is an investment banking firm that provides transaction advisory services to middle market private companies. EdgePoint professionals combine upmarket sophistication, specific industry acumen, and intimate client service to drive exceptional merger and acquisition and financing outcomes for owners of private companies. The firm is a FINRA-member broker/dealer and member of SIPC. Further information can be found at www.edgepoint.com.
For more information about this transaction or EdgePoint, please contact Paul Chameli at 216-342-5854 or [email protected].
SOURCE EdgePoint
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