Wednesday January 12th, 2022
IMAP Albia Capital has advised ALCORTA FORGING GROUP in acquiring THE NEW BOSTON FORGE PLANT, owned by LC MANUFACTURING, located in Detroit, USA
Alcorta Forging Group (AFG), a centennial forging company based in Elgoibar (Gipuzkoa, Spain), has acquired the New Boston Plant (Detroit, MI), previously owned by the LC Manufacturing Group.
This acquisition is part of a diversification process planned by AFG from a double perspective: (i) geographical, by increasing its sales outside of Europe and (ii) end market, by increasing its presence in parts outside of the internal combustion engine.
According to Lorenzo Mendieta, CEO of AFG, “By incorporating this plant, we are reinforcing our commitment to globalizing AFG and also to the American market, where we have held technical and commercial offices in Troy (MI) since 2013. We intend to maintain and develop current customers, as well as develop the market and attract new customers”.
According to Pete Baenen, CEO of Lake City Manufacturing LLC (“LCM”) “The sale of the New Boston operations to Alcorta is an important step forward for both companies. For Alcorta, it allows a cost-effective entry into the north American market with closed-die forgings. We wish Alcorta enormous success and look forward to an ongoing business relationship of collaboration with mutual customers. For Lake City Manufacturing, the sale of the New Boston plant enables LCM to continue its focus and emphasis on hammer forging, which is where LCM sees its best future. LCM’s Lake City operations will receive increased focus, more capital availability, and investment in automation and processing capabilities.”
Scott Smith, co-owner of LCM said, “LCM’s strategy continues to be providing customers with the best American-made forgings possible. Made in American continues to be our direction, offering the highest quality forgings at a globally competitive cost. Opportunities for employment and production growth will expand at Lake City with funding made possible through the sale of New Boston. All tooling support and admin will remain part of the Lake City, MI operations.”
About Alcorta Forging Group
Alcorta Forging Group (AFG) is a global, 110-year-old company of reference in the sector of carbon and stainless steel forging. AFG’s headquarters are located in Elgoibar (Gipuzkoa, Spain), employing 200 people worldwide and with a turnover of over €70m in turnover.
With this acquisition, AFG further expands its international presence, integrating an additional manufacturing activity in North America, further to its plant in Elgoibar. Alcorta is also present in France, Czech Republic, Germany, China and South Africa.
About the New Boston Plant
The New Boston plant is a 45.000sqft IATF 16949 certified forging operation that produces carbon steel hot forging parts, with an annual turnover of ~$14M and which employs 45 people. It´s 3 forging presses (one of 2,000T and two of 2,500T) are currently focused on producing larger parts of the chassis, heavy trucks and non-vehicle markets.
About IMAP ALBIA CAPITAL
IMAP Albia Capital is a firm specializing in mergers and acquisitions, capital raising, debt restructuring and valuation of companies. It is an exclusive member in Spain of the IMAP organization, with a presence in 43 countries, and one of the top 10 independent consultants in the Spanish market. At a global level, IMAP completed 294 transactions in 2021. It has consistently been one of the top 10 worldwide M&A consultants, and number one among the independent consultants.