International Equipment Solutions, LLC ("IES”) has acquired, through an indirect, wholly owned subsidiary, CWS Industries (Mfg) Corp. (“CWS” or the “Company”). This is the fourth acquisition by IES since its formation. Financial terms of the transaction were not disclosed.
IES was formed in September 2011 as a platform for investments serving the construction, agriculture, landscaping, infrastructure, recycling, demolition, mining, and energy industries. IES’ first two acquisitions occurred in September 2011 when the company acquired Paladin Brands Holding, Inc. and Crenlo LLC from Dover Corporation. In November 2011, Stephen Andrews was retained as Chief Executive Officer of IES to lead the integration of the first two acquisitions and to aggressively grow and globalize the company. As part of its globalization strategy, IES acquired Siac do Brasil, Ltda. (“Siac do Brasil”), a manufacturer of cab enclosures in Brazil, in June 2012.
CWS is a leading manufacturer of highly engineered attachment products, including tire manipulators, cable reelers, grapples, buckets and various large excavator attachment products. Its customers include a global network of dealers and end-users in the mining, oil & gas, forestry and construction markets. CWS is focused on understanding each of its customers’ unique applications and geological conditions and as a result, its attachments and fully integrated equipment systems are tailored to the specific needs of its customers and are able to withstand some of the world’s harshest environments. The company employs 140 people at two facilities, located in Surrey, British Columbia and Edmonton, Alberta, Canada.
Andrews said, “The acquisition of CWS is another important step towards the globalization and diversification of IES. We are very impressed with CWS’s rapid growth trajectory, customer base, engineering capabilities and broad portfolio of highly engineered attachment products. This acquisition not only strategically enhances our footprint with dealers in Canada and the U.S. Pacific Northwest, but also opens up IES to a growing base of sales relationships located internationally in South America, Russia and Asia.
"Additionally, the acquisition enhances IES’ product portfolio to include a suite of attachments with applications in the high-growth mining, oil & gas and forestry end markets, which are currently underserved by IES," he added. "As demonstrated with both this acquisition and the acquisition of Siac do Brasil, IES remains committed to supporting our customers’ global expansion initiatives with localized supply, technical resources, and parts and service support. IES intends to invest significant additional capital and resources into CWS to ensure the highest level of production quality and capacity for our customers. IES has made tremendous progress in our first 10 months and I am very confident our future is bright.”
Paul, Weiss, Rifkind, Wharton and Garrison LLP and Goodmans LLP served as legal counsel to IES and its affiliates. Financing for the transaction was provided by a syndicate of institutional investors agented by Regiment Capital Advisors, LP and PNC Bank, National Association.