New State Capital Sells Central Conveyor to U.S. Tsubaki Holdings, Inc.

NEW YORK, June 18, 2018 /PRNewswire/ -- New State Capital Partners today announced that the firm has sold Central Conveyor Company LLC, ("Central Conveyor" or "Company"), a global leader in automotive and industrial conveyor systems, conveyor system integration, custom conveyor design and controls automation, to U. S. Tsubaki Holdings, Inc., a wholly owned subsidiary of Tsubakimoto Chain Co. ("Tsubaki"), for approximately $140 million. The transaction closed on June 15, 2018.

An affiliate of New State Capital Partners acquired a majority of the business in December 2014 from the founder and other private holders. Since New State's investment, the Company has experienced significant growth, increasing top line revenues by 374 percent since July 2014. Under New State's ownership, Central Conveyor also launched new divisions in controls and tooling, acquired original equipment manufacturer KCI, doubled its number of employees to 200, and built a new corporate headquarters in Wixom, MI.

"Central Conveyor has achieved tremendous growth by every measure over the last three and half years, expanding the business both organically and through acquisition," said David Blechman, founder of New State Capital. "We worked closely with the Company's management team to help Central Conveyor realize these results, and we wish them future success under their new owners."

"We have enjoyed a strong partnership with the New State team, and their operational expertise has helped us become a global leader in conveyor systems in the automotive industry," said Rick Wells, CEO of Central Conveyor. "We look forward to working with our new owners and leveraging their relationships in the auto industry to build upon the Company's success."

Morgan, Lewis & Bockius LLP served as legal advisor, Lincoln International served as financial advisor, and Duff & Phelps provided sell-side due diligence services to New State Capital and Central Conveyor.

About Central Conveyor Company
Central Conveyor Company was established in 1993 to design and build high quality customized material handling and conveyance systems for the automotive industry. Today, the Company is a turn-key systems integrator with a complete portfolio of industry solutions for the automotive, parcel & logistics, and warehouse & distribution markets.  Central Conveyor designs, engineers, and implements right application, right fit automated systems to provide customers with a competitive industry advantage. Its full-service solutions offer comprehensive storage and retrieval systems, including custom controls and integration services and electrical field wiring and support.

About Tsubakimoto Chain Co.
Tsubakimoto Chain Co. is a world-leading manufacturer and developer of power transmission products and materials handling systems. Tsubaki has strong market positions in premium-quality chains, automotive timing chain systems, and power transmission units and components, which it supplies to a wide range of industries including machine tools manufacturing, mining, construction machinery, steelmaking, LCD production, semiconductor fabrication, and the automotive industry. Tsubaki is also a leader in the development and production of factory automation systems, physical distribution systems, and electronic control devices.

About New State Capital Partners, LLC
New State Capital Partners, LLC is an entrepreneurial-minded private equity firm that strives to be more nimble, more decisive and more cooperative than larger, institutional firms. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships, rather than as an exercise in meeting rigid investing criteria. The firm is very flexible about the structure of its investment and focuses on growth and add-on investment. New State invests in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, healthcare services and industrials, and has approximately $400 million in assets under management. New State and its affiliates have invested in 17 companies since January 2014. For more information visit www.newstatecp.com.

Media contacts

For New State Capital Partners
Blicksilver Public Relations
Joanne Lessner, [email protected], 212-222-7436 or
Jennifer Hurson, [email protected], 845-507-0571

SOURCE New State Capital Partners