The corporate owner of Crenlo, one of Rochester's largest manufacturers, has added a Brazilian firm that also makes cabs for heavy equipment to its portfolio.
International Equipment Solutions announced Monday that it acquired Brazil-based Siac do Brasil from SIAC S.p.A. of Bergamo, Italy. Financial terms of the deal were not released.
International Equipment, which is owned by KPS Capital Partners, describes Siac do Brasil as "the leading manufacturer of cab enclosures in Brazil."
KPS formed IES last year and used it to purchase Rochester-based Crenlo for $290 million, along with Paladin Brands of Iowa, from Dover Corp. Crenlo employs about 750 people here at two facilities. It makes cabs for construction and agriculture companies such as Caterpillar and John Deere, as well as electronic enclosures under the EMCOR brand.
Picking up this Brazilian company fits with the international strategy that KPS and IES announced last year.
"The acquisition of Siac do Brasil is a critical strategic step in the growth and globalization of IES," stated CEO Steve Andrews in Monday's press release. "The acquisition not only expands many of our current North American OEM supply partnerships into the Brazilian market, but further broadens our customer base as well. Additionally, the acquisition introduces IES as an important supplier in the rapidly growing Brazilian locomotive market."
Crenlo's president says this move is good for the local company, though it does not directly affect the Rochester operations.
"This is a positive development for Crenlo, as it broadens the overall cab enclosure business under IES to be more global in scope," says Dave Kilburn. "This acquisition will not have any unfavorable impact on either jobs or activity at Crenlo, as the acquired company only operates in Brazil."
He also commented that Crenlo is currently doing well and "has bounced back from some tougher times back in 2009."
Founded in Rochester in 1951, Crenlo was under the control of independent Minnesota owners for much its 60 years. It was acquired as a subsidiary by Dover Corp. in 1999.
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