Equity Partners HG brokers sale of Fairfield Aluminum Casting Company, Inc. to Alcast Company Midwest Works LLC
For Immediate Release | August 29, 2017
Fairfield Aluminum Casting Company, Inc. (FALCO) has completed a going concern sale transaction with Alcast Company Midwest Works, LLC of Peoria, IL. Alcast’s parent company, Alcast Company, operates a similar business to FALCO’s in Illinois. Equity Partners HG, a Maryland-based investment banker, served as intermediary for the seller.
FALCO started in 1946 in a 5,000-sq. ft. foundry and over the years grew to the 200,000-square foot full-service operation that they are today. Providing aluminum product design and production, the company specializes in sand and permanent mold products with fast turnaround prototypes. FALCO provides its customers with turnkey products, offering pattern making, assembly, machining, coating, inserting, heat treating, pressure testing, impregnating and other value add casting operations.
In late February, FALCO retained Equity Partners HG as its exclusive broker. FALCO had seen a reduction in its revenues over the past several years and was no longer profitable. Equity Partners HG’s charge was to quickly find a buyer for the business before it was forced to shut down. Equity Partners HG ran an exhaustive marketing process, reaching out to thousands of prospective buyers. Following a thorough evaluation of the market, Equity Partners HG narrowed the field of more than 75 active prospects down to the three most logical buyers. After extensive negotiations with all three buyers, Alcast was finally approved as the successful suitor for the business. All 47 full time employees were retained, and the business continues to operate with plans to grow.
Fred Cross, managing director at Equity Partners HG said, “This was an outstanding result. FALCO brings countless synergies to Alcast Company and the sale brought a far greater recovery to creditors than liquidation would have. Keeping the jobs in Fairfield, IA and building on these synergies will make this acquisition a great success for Alcast long into the future. All of us at Equity Partners HG are happy to see an outcome like this and we look forward to FALCO/Alcast Company Midwest Works providing another 70+ years of continued service.”
Other professionals who worked on the transaction include: