Chicago-based private equity firm May River Capital has created a group called Advanced Material Processing after completing the acquisition of Kason Corp.
The new group also includes May River's existing portfolio company Marion Process Solutions Inc.
Both Kason, based in Millburn, N.J., and Marion, Iowa-based Marion Process Solutions make equipment for a broad range of industries, not just plastics. AMP will focus on material processing equipment for sectors such as food and beverage, pharmaceutical nutraceuticals and chemicals.
May River Capital looks for lower middle-market industrial companies that are growing. According to its website, the firm has more than $400 million in assets under management. May River is currently investing through a $170 million institutional fund and seeks to deploy $15 million to $50 million of equity per platform company, or potentially more through a co-investment.
The private equity firm completed the deal for Marion Process Solutions on Dec. 31. The Kason deal was completed Sept. 3.
"AMP is an exciting new platform for May River," said Chip Grace, partner at the private equity firm. "Material processing equipment is a highly fragmented sector. Combining industry-leading, complementary material processing equipment manufacturers will allow us to advance engineering capabilities in addition to providing other synergies. Our goal is to create short- and long-term value by providing better products and services to our customers."
Brad Sterner, AMP's chairman, said the group will focus on growing both organically and through acquisitions.
Kason manufactures screening, sifting, drying, cooling and processing equipment for bulk material. Kason sells machinery to industries such as plastics, chemicals, food, pharmaceutical, energy, minerals, aerospace and defense.
Marion Process Solutions custom-manufactures industrial mixers, blenders and microwave vacuum drying systems for the plastics, chemicals, food, nutraceutical, minerals and biomass industries.
Both companies sell equipment internationally.
"Both Kason and Marion have strong foundations to build upon, and we look forward to extending Kason's and Marion's reach to new customers and markets with this engineering force," said May River partner Steve Griesemer.