DRT Holdings to acquire Custom Machining Corporation
DRT Holdings, LLC, which provides specialised manufacturing solutions to the metal packaging, aerospace, and precision industrial segments, announced that it has acquired Custom Machining Corporation (CMC). CMC is a provider of high-speed, high-precision liner systems and parts for metal packaging applications serving the end markets for food, beverage and household products. Terms of the transaction were not disclosed. DRT is a portfolio company of Mill Rock Capital, a growth- and operations-oriented private investment firm that invests in well-positioned middle-market businesses in North America.
CMC, based in Denver, Colorado, and founded in 2002 by Terri and Allan Ross, is the foremost supplier of rotary end liner systems to the metal packaging industry worldwide. CMC’s product offerings span a wide range of high-performance end liner systems that precisely apply food-safe liquid compounds to metal end interiors at rates approaching 6,000 ends per minute. Terri and Allan Ross will be stepping back from the company after ensuring a successful transition to DRT’s leadership team.
As part of the transaction, CMC will join DRT’s Metal Packaging Systems (DRT MPS) segment, expanding MPS’ suite of systems and aftermarket parts serving the global food and beverage can industry. DRT MPS invented the easy-open pull-top, principally used in food and beverage cans, and is a leading provider of equipment, aftermarket parts, and services for the global metal packaging market. CMC and DRT MPS will leverage each other’s technical know-how to drive innovation and support their customer base through manufacturing, assembly and distribution facilities in North America and Europe.
Larry Churchwell, president of DRT MPS, said, “CMC is a highly complementary business to DRT MPS, and we are extremely excited to enhance the suite of solutions we provide to our respective customer bases. CMC is well respected for its quality, technical capability, and customer service, which we will continue to strengthen under the DRT banner. I look forward to working with CMC’s associates to drive high quality, innovative outcomes and best-in-class service for our customers.”
Terri and Allan Ross added, “DRT is the right home for CMC’s associates and its valued customer relationships. We are aligned with DRT in preserving and continuing our unwavering commitment to quality and service. We look forward to the continued growth of the combined business.”
“We are pleased to welcome CMC’s associates and customers to DRT,” said Rob Cohen, chief executive officer of DRT. “Our continued investment into the metal packaging market expands our scale and we are excited to support the growth and capabilities of our packaging, food and beverage platform.”
Alvarez & Marsal Transaction Advisory Group and White & Case LLP advised DRT on the transaction.