Fuzion Technologies, Inc. hired REAG to execute the sale of Armstrong Precision Manufacturing, the machining operation of Fuzion Technologies’ Brick Division. Fuzion Technologies is a refractory product company providing a full range of refractory materials for industries such as cement, lime, iron, steel, paper, pulp, chemical, glass, energy, aluminum, and other non-ferrous metal industries.
Sell-Side: Corporate Spin-Off
Precision Metal Machining
Armstrong Precision Manufacturing provided the precision machining of consumable metal parts to the Freeport Brick Division of Fuzion Technologies. Due to market conditions at the time of sale, Fuzion’s core refractory business had contracted, reducing the need for consumable machined parts. This resulted in Fuzion deciding to spin-off Armstrong Precision Manufacturing and raise cash to support its core business.
However, the Freeport Brick Division of Fuzion Technologies would require the services of Armstrong Precision Manufacturing post-closing. Therefore, the right buyer needed existing precision machining experience, the ability to deliver timely parts, and the ability to add outside customers to sustain the operation long-term.
REAG was hired to locate the buyer and facilitate a transaction.
Armstrong Precision Manufacturing was sold to Chase Industries Inc., a metal fabrication and manufacturing company located in Pittsburgh, PA. The acquisition of the Armstrong Precision assets allowed Chase Manufacturing the opportunity to expand their service offerings to existing customers and added a master service agreement with the Freeport Brick Division of Fuzion Technologies to their book of business.
“You absolutely, without debate, worked in our best interest, solved problems (most of the time before they came about) and did whatever was needed to get us the best possible deal both short and long term.”
Grant Hunter, CEO Fuzion Technologies, Inc.