LC MANUFACTURING, LLC HAS SOLD ITS NEW BOSTON FACILITY TO ALCORTA FORGING GROUP
Birmingham, Michigan – March 23, 2022 – Angle Advisors is pleased to announce that LC Manufacturing (“LCM”) has sold its New Boston, MI heavy-press forging operations (“New Boston”) and will retain and expand their open-die hammer forging operations (“Lake City”). Angle Advisors acted as the exclusive investment banking advisor to LCM in completing the sale of the New Boston operations to Alcorta Forging Group (“Alcorta”).
Based in the Southeast Michigan, the New Boston facility operates heavy-tonnage presses producing high-grade forged steel components for the commercial vehicle, energy, and industrial end markets. New Boston specializes in deep-drawn applications including heavy truck drivetrain and suspension, industrial mining bits, and pipeline valves.
Headquartered in Elgoibar, Spain, Alcorta is a global supplier of forged components concentrated on lighter-duty automotive customers. The acquisition of New Boston expands Alcorta’s international presence and increases Alcorta’s business outside of light vehicle combustion engine applications. New Boston will be Alcorta’s first manufacturing facility in North America. With this acquisition Alcorta will have sales and manufacturing operations in Spain and the United States along with a sales and customer service presence in France, Czech Republic, Germany, and South Africa. According to Lorenzo Mendieta, CEO of Alcorta, "By incorporating this plant (New Boston), we reinforce our commitment to the globalization of Alcorta and to the American market, where we have had a technical sales office since 2013. We intend to maintain and support our current customers, as well as developing markets by attracting new customers." For more information on Alcorta, please visit https://www.alcortagroup.com/en.
LC Manufacturing’s decision to divest the New Boston facility allows expansion and investment in its open-die hammer forging operations in Lake City, MI. "The sale of New Boston to Alcorta is an important step forward for both companies: For Alcorta, it represents an entry into the North American forging market; and for LCM, this focusing on hammer forging for the future.” said Pete Baenen, CEO of LCM. “We appreciate Angle Advisor’s guidance through this process and their ability to fully understand LCM’s business to help navigate the complexities of a carve-out cross-border transaction.” For more information on LC Manufacturing, please visit www.lcforge.com.
Angle Advisors, with offices in the United States, Germany, and China, specializes in mergers and acquisitions, corporate divestitures, and capital raising. The firm’s professionals have completed 253 transactions since 2009 for multinational corporations, privately-held companies, private equity funds, and public sector clients. For additional information, please visit www.angleadvisors.com.