Davis-Standard to get new private equity owners

Machinery maker Davis-Standard LLC is set to change hands from one private equity owner to another.

New York-based Gamut Capital Management said in a Nov. 9 news release that it had inked a definitive agreement to purchase Davis-Standard and its affiliates from Oncap, the middle-market private equity platform of Onex.

Terms of the deal were not disclosed. The deal is subject to customary closing conditions and is expected to close by the end of the year, according to the Gamut release.

Based in Pawcatuck, Conn., Davis-Standard supplies extrusion and converting systems and related aftermarket products and services for the elastomer, rigid packaging, flexible packaging and infrastructure end markets. Gamut said Davis-Standard has an installed base of about $7.5 billion of equipment globally.

"We are excited to partner with the Gamut team during this next phase of Davis-Standard's long history as a provider of highly engineered solutions to an extensive base of industry-leading customers," Davis-Standard CEO Jim Murphy said. "The resources Gamut brings to this investment will enable us to not only accelerate growth within our markets but also transform Davis-Standard into a leading, value-added global process solutions business."

He added that the machinery firm grew and performed well under Oncap's ownership, and will leverage that foundation as it moves forward.

Davis-Standard boasts systems that encompass more than 10 product lines that support manufacturing applications and customers in every major industry. It employs more than 1,400 worldwide, with manufacturing and technical facilities in the U.S., Canada, China, Germany, Finland, Switzerland and the United Kingdom.

"We are very excited to continue to grow the company alongside the Davis-Standard management team," said Jordan Zaken, a founding partner of Gamut. "As a leading player in extrusion and converting technologies for the packaging and infrastructure sectors, Davis-Standard offers not only the opportunity to expand with customers in fast-growing end markets, but also to further extend its service offering to support its customers in the aftermarket."

Gamut will continue to invest in Davis-Standard so it can provide customers with solutions in the areas of efficiency, sustainability and automation technology, Zaken added.

Gamut also is one of the owners of International Automotive Components Group, an interior parts supplier.

At the recent International Elastomer Conference in Pittsburgh, Davis-Standard introduced its Model 4000AG fully automated crosshead based on the company's previous series. The new design provides "closed loop, stepper-driven automatic control of tube concentricity and wall thickness in a hands-free, low maintenance package," according to the company.

It also displayed its DSREV extruder, which has feedscrew and head zone direct-injection temperature control units, a compact base, and simplified cooling and wiring systems.

BMO Capital Markets and Stifel, Nicolaus and Co. served as the financial advisers and Kirkland & Ellis L.L.P. served as legal counsel to Gamut. Jefferies and Robert W. Baird served as the financial adviser to Davis-Standard.