Date of Acquisition: March 1, 2014
Selling Entity: Stencil Cutting & Supply Co., Red Wing, Minnesota
Buying Entity: SCS Elevator Products Inc., Minneapolis, Minnesota
Company Background: Stencil Cutting & Supply Co. (SCS), a 38 year old privately held company, is a custom manufacturer of a wide variety of code compliant elevator products which it sells to major elevator manufacturers and elevator service companies throughout the U.S., Germany, France, Mexico and Brazil.
Situation: In 2013, the majority owner of SCS approached Stewart Capital Partners about a potential sale of the company. CEO/Majority Owner was interested in planning for her eventual retirement. The majority owner desired a Buyer which could build a professional management team, establish a board of directors, and invest in the company’s growth.
CEO/majority owner was willing to stay on-board with the acquiring entity for a number of years after the sale to assist with the transition of day-to-day operations to a new management team and to focus on building domestic and international sales.
Outcome: Stew Stender of Stewart Capital Partners and Al Geiwitz of Orion Financial formed SCS Elevator Products Inc. to acquire SCS. Upon the closing of the sale, the former CEO was elevated to President/CEO and Board Chair of SCS Elevator Products Inc. The company has transitioned to a professional management team with an active and supportive board of directors. Company’s plan is to grow organically throughout the U.S. and Europe while also scouting for synergistic companies to acquire.
For more information, please see: www.scselevatorproducts.com