HBM Holdings, one of St. Louis’ largest privately-held companies with an estimated $550 million in revenue last year, has acquired Schafer Industries, a producer of high-precision, custom-engineered gears and machined parts.
Terms of the deal were not disclosed.
Schafer, based out of South Bend, Indiana, operates two divisions: Schafer Gear Works and Schafer Driveline.
The deal is part of HBM’s acquisition strategy, which was implemented several years ago. HBM, led by CEO Mike DeCola, targets companies within an EBITDA (earnings before interest, taxes, depreciation and amortization) range of $10 million to $25 million, while remaining flexible for add-on acquisitions to its existing portfolio.
“Schafer is a perfect fit for our model, as the current ownership group is ready to transition the business to reach a new level of capability and success,” DeCola said in a statement.
Schafer CEO Bipin Doshi and Stan Blenke, executive vice president and CFO, will stay involved during a transition period, according to a release.
Eric Van Rens, who since 2004 has served as the vice president of sales and marketing for Mississippi Lime, another HBM portfolio company, will step in as Schafer CEO, effective immediately.
HBM operates three subsidiary companies (aside from Mississippi Lime and Schafer) — Tru-Flex, which makes exhaust decouplers used in emissions systems; Breen, which provides emissions measurement and mitigation technologies to the utility and industrial boiler markets; and Delavau, a manufacturer of granulated, blended and tableted calcium, vitamin and mineral supplements.