A 10-member management team has purchased screw and barrel maker Xaloy Inc. from Saurer AG of Switzerland, in a deal announced March 8.
The executive group teamed with Chicago-based Baird Capital Partners, the private equity arm of Robert W. Baird & Co. Terms were not disclosed. Officials of Xaloy declined to say what percent of the company is owned by Baird and by the management group.
Last summer, under Saurer's ownership, Pulaski, Va.-based Xaloy bought competitor New Castle Industries Inc. for $17 million, creating a giant worldwide screw and barrel maker and adding chill rolls to Xaloy's product line. At the end of the year, Saurer sold off the European screw and barrel makers of Xaloy.
After those moves, Xaloy now has annual sales of about $64 million and employs 520, according to Walter Cox, president and chief executive officer. The company runs six U.S. plants, a factory in Thailand and a sales and service subsidiary in Japan.
Included in the 10-member management group are some familiar names: Cox, Gunther Hoyt as executive vice president, Tim Womer as vice president of engineering and technology and Tim Farley as vice president of manufacturing.
Tom Doland, the former president of New Castle Industries, left the company in January and is pursuing another business venture.
Baird Capital expects to play an active role at the board level, but does not typically get involved in day-to-day operations.
Xaloy was part of Saurer's Surface Technology division. Saurer, based in Zurich, Switzerland, wanted to divest Surface Technology so it could focus on its main businesses in textile machinery and automotive transmissions.
Before Xaloy bought New Castle last year, the publicly traded Saurer said it wanted to consolidate overcapacity in the U.S. market to make the business more attractive for a buyer.
Cox said Xaloy's Asia business ``continues to grow very strongly.'' In the United States, Xaloy is seeing some recovery in replacement screws and barrels for injection molding machines, and those supplied to new-machinery manufacturers. But the extrusion market remains slow, he said.