CPM Holdings – a leading global supplier of engineered process equipment for animal feed, oilseed processing, extrusion, and thermal processing markets – announced a $400 million strategic equity investment from Koch Equity Development LLC (KED), the principal investing and acquisition arm of Koch Industries. The investment proceeds will fund a distribution to the company’s existing equity holders.
Affiliates of American Securities LLC, a leading U.S. private equity firm and the current controlling shareholder of CPM, will continue to own most of the company along with KED and the company’s management team.
Goldman Sachs & Co. LLC served as CPM’s financial advisor. Guggenheim Securities, LLC served as KED’s financial advisor. Jones Day and Weil, Gotshal & Manges LLP acted as legal counsel to KED and to American Securities, respectively.
KEY QUOTES:
“CPM has remained a market leader after so many years because of its ability to be nimble, meeting the current needs of its customers while also seeing around corners to introduce new solutions. We believe this new investment is a vote of confidence in the strategic plan we have been executing alongside American Securities and will be a powerful growth accelerant.”
– Dave Webster, CEO of CPM
“The CPM management team, in partnership with American Securities, has done a tremendous job growing CPM over the past five years. We are excited to partner with the current owners as the Company continues to innovate and deliver value for its customers.”
– Mike Harris, a Managing Director of Koch Equity Development
“KED seeks to invest with like-minded partners and in best-in-class businesses that create superior value for customers. CPM fits this mold, and we look forward to supporting the Company as it continues to invest in new products and capabilities.”
– Mitchell Hanson, a Director of Koch Equity Development
“CPM is synonymous with high-quality, versatile equipment across a broad range of industries. We are proud of our partnership with the talented CPM team, and we are grateful for the support and confidence of Mike and the broader Koch team as we continue to pursue new opportunities for the company.”
– Michael Sand, a Managing Director of American Securities
“CPM management’s passion and ingenuity have enabled the Company to maintain its position as an industry leader more than a century after its founding. CPM’s mission is to improve everyday life for people across the globe, and we are committed as ever to advancing this goal.”
– Michael Fisch, Founder and CEO of American Securities
