Private-equity group Stellex Capital Management announced that it has acquired two Pittsburgh-area manufacturers, a ferrous foundry and a forging and machining business, from Arcosa Inc. Both of the acquired companies supply a range of components for railroad and industrial buyers.
The price of the purchase was not announced.
Stellex named David Meyer as CEO of foundry McConway & Torley and forger Standard Forged Products. Meyer will work the existing management teams for those operations.
Referring to the acquired businesses as “the company,” Stellex stated that the new ownership would position the casting and forging operations to accelerate their growth, and allow them “to pursue organic and acquisitive growth opportunities, both vertically and laterally. A key focus will be on identifying prospective opportunities that offer complementary capabilities to existing customers and markets, while also seeking to extend current capabilities to new customers and markets.”
McConway & Torley is a steel foundry with plants in Pittsburgh and Kutztown, PA, and 60,000 tons/year of melting capacity from three electric arc furnaces. Its cast products include couplers for freight trains and transit cars, knuckles and coupler parts, yokes and followers, striker parts, and draw bars.
The steel forging business is Standard Forged Products, Pittsburgh, which produces rough forged or machined axles for rolling stock. It also operates a separate circular forging business called McKees Rocks Forging in McKees Rocks, PA, supplying industrial, mining, and transportation customers with crane wheels, sheave wheels, gear blanks, shafts, mining rollers.
“We see tremendous potential in the company’s capabilities and are committed to investing in its future,” stated Michael Livanos, managing director at Stellex. “This acquisition aligns with our strategy of applying operational expertise in an effort to drive growth in critical manufacturing sectors. Additionally, it reinforces our dedication to the Pittsburgh region, complementing our local office opened in 2022 and marking our second investment in a Pittsburgh-based company.”