Livingstone Cuts Deal for Leading Industrial MRO Distributor
Livingstone’s Industrial team has advised American Cutting Edge (“ACE” or the “Company”) on its sale to Pfingsten Partners, L.L.C. (“Pfingsten”). Livingstone acted as exclusive financial advisor to ACE. Transaction terms were not disclosed.
Headquartered in Miamisburg, Ohio, with an additional facility in Akron, Ohio, ACE sells its products under the American Cutting Edge, Better Tools, and Great Lakes Industrial Knife brand names. In addition to distributing knives, blades, and razors, the Company also provides value-added services, including sharpening, etching, and inventory management. ACE sells to end users, distributors, and OEMs within the recycling, converting, flooring installation, plastic production, food & packaging, tree care, and archery end markets.
“Livingstone ran a broad global auction process that generated substantial interest from a comprehensive set of potential investors. From beginning to the end, the Livingstone team’s advice, process management, and analytical support yielded an exceptional outcome for our family. We are proud to have found the right partner in Pfingsten to build on the Company’s long-standing history and uphold the Biehn family legacy,” said Chuck Biehn, Chairman of ACE.
Pfingsten is an operationally focused private equity firm founded in 1989. From its headquarters in Chicago, the firm builds better businesses through operational improvements, professional management practices, global capabilities, and profitable business growth. Since completing its first investment in 1991, Pfingsten has raised six investment funds with total commitments of approximately $1.8 billion and has acquired 173 manufacturing, distribution, and business services companies.
ACE will continue to be led by Gregory Billhardt, the Company’s President and CEO. “The management team is excited about partnering with Pfingsten to accelerate growth while delivering the high level of service, deep industry expertise, and attention to our customers’ needs that ACE is known for,” said Gregory.
“Founded over 60 years ago, ACE is the market-leading distributor of industrial knives, razors, and blades serving a broad range of end markets with precision, reliability, and availability,” commented Andrew Isgrig, Co-head of Industrials at Livingstone. “This successful outcome demonstrates the appeal of high-margin, consumable products distributors with diverse end markets and substantial upside growth potential in existing and new markets,” he added.
“ACE has built an impressive legacy in the industrial blade industry, and its new partnership with Pfingsten marks an exciting new chapter of expanded opportunity. We’re proud to have helped the ACE team find a like-minded partner committed to supporting their long-term vision and growth,” stated David Modiano, Director at Livingstone.
This transaction is the latest in Livingstone’s expanding resume of industrial distribution transactions. Other notable transactions include advising Ives Equipment Corporation in its sale to MCE (portfolio company of Frontenac), AC Controls sale to Kele, Inc. (portfolio company of The Stephens Group), DwyerOmega (portfolio company of Arcline Investment Management) acquisition of Miljoco Corp. LLC, and the sale of Engineered Specialty Products, Inc. (portfolio company of Tonka Bay Equity Partners) to Flow Control Group (portfolio company of KKR). Our relationships with leading global strategic and private equity acquirers, data-driven approach, and deal creativity are key differentiators enabling our industrial technology team to deliver exceptional outcomes for our clients.
Auman Mahan Furry acted as legal advisor and Plante & Moran, PLLC provided transaction-related accounting services to ACE in connection with this transaction. Paul Hastings LLP acted as legal counsel for Pfingsten.
