Van Gorp Acquires Continental Screw Conveyor
Dave Wigton was the owner of Continental Screw Conveyor, a manufacturer of screw and belt conveyors in St. Joseph, Missouri. Founded in the 1920s, the company had maintained a good reputation in both the industry and the community for decades. Wigton’s father had run the company successfully for many years before passing away in 2009. In the years prior to his death, Wigton’s father had removed himself from the company’s day-to-day operations. During that time, sales began to decline due to the recession. As a result, when Wigton assumed management responsibility of the company in place of his father, Continental Screw Conveyor was in need of a revival. Wigton wanted to preserve his father’s legacy, but did not want to run the business himself. Consequently, he hoped to sell the company in an expeditious manner.
Given the circumstances of the business and the sale, Mariner Capital Advisors sought out growing companies in the dry bulk material handling equipment industry that could gain immediate synergies by acquiring Continental. Although the recession had forced some of Continental’s competitors out of business, demand was expected to return to normal levels after the recession. This would increase Continental壮 market share and provide opportunities to expand the sales force, improve manufacturing capabilities, extend the product line, and branch into new industries. Consequently, Mariner Capital Advisors believed that an innovative strategic buyer with an established management team and strong financial resources could benefit greatly from acquiring Continental.
Mariner Capital Advisors contacted Van Gorp, a manufacturer in the industrial material handling industry, and demonstrated several ways in which they could benefit from the acquisition of Continental. Van Gorp could cross sell Continental’s products while reducing manufacturing costs by supplying components used in their conveyor systems. Van Gorp would also gain additional manufacturing space, as well as access to Continental’s diverse customer base. At the same time, Continental could again thrive as an industrial business that produced quality products used to improve the operational efficiency of other industrial businesses. Van Gorp immediately recognized the synergies and was able to move quickly to complete the transaction and supplement the existing management team.
Mariner Capital Advisors completed the sale of Continental Screw Conveyor to Van Gorp in October 2010. This transaction resulted in maximum value for our client, while also achieving his goal of completing the sale quickly. In addition, the transaction supported the local community by maintaining jobs and growing the area’s industrial business sector.
About Continental Screw Conveyor
Established in the 1920s, Continental Screw Conveyor is a manufacturer of dry bulk material handling equipment, namely screw conveyors, belt conveyors and bucket elevators. The company performed design and build services through custom conveyor system applications. It provided solutions to a wide variety of industries including cement, coal, food products and gypsum.
About Van Gorp
Van Gorp is a manufacturer focused on the industrial material handling industry. At the time of this transaction, they were actively acquiring companies within the industrial material handling industry that would be synergistic with their existing companies.
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