Strategic Acquisition: AFCO Industries Sold to Fulton Asset Management
XLCS Partners Facilitates Sale of AFCO Industries
XLCS Partners, Inc. has recently played a pivotal role in advising AFCO Industries on its successful sale to Fulton Asset Management. This strategic move marks a significant point in AFCO's journey, allowing it to leverage new opportunities while ensuring stability for its leadership and operational teams.
A Comprehensive Overview of AFCO Industries
Established in 1946, AFCO Industries stands out as a leader in the manufacturing of building products in the United States. The company specializes in producing stock and bespoke columns and railings suitable for various applications including decks, walkways, and porches. Additionally, AFCO offers millwork door products catering to both residential and multi-family sectors.
Innovative Manufacturing Capabilities
AFCO is committed to innovation, utilizing advanced materials such as aluminum, fiberglass, vinyl, and composite products. Its manufacturing prowess is underscored by the ability to operate two seven-inch aluminum extrusion presses. These impressive machines, with capacities of 1,675 and 1,800 tons, denote AFCO's commitment to high-quality production standards.
Contract Manufacturing Support
Beyond its core product offerings, AFCO runs a full-service contract manufacturing and CNC metal fabrication business. This division not only supports AFCO's manufactured goods but also serves a growing list of OEM customers, showcasing the company's versatility and dedication to customer needs.
The Role of Fulton Asset Management
Fulton Asset Management (FAM) is known for its holistic approach to investments, focusing on middle-market businesses within the industrial and manufacturing sectors. The firm brings patient capital and extensive operational support to its portfolio, fostering growth and long-term value creation. This acquisition by FAM represents a strategic partnership aimed at enhancing AFCO's operations and market position.
Leadership Retention and Vision
A key aspect of this transaction is that AFCO’s leadership team will continue in their roles, ensuring a seamless transition and maintaining the company's culture and operational integrity. Don Fowler, AFCO’s President and CEO, emphasized the importance of choosing XLCS Partners for their effective and hands-on approach during this transformative period. He noted, "Unwinding an ESOP can be complex, but XLCS was with us every step of the way. Their results-driven approach generated significant interest and a fruitful outcome for our company."
Expert Guidance from XLCS Partners
XLCS Partners acted as the exclusive M&A advisor throughout the sale process. The experience and dedication of the team were highlighted by Fowler, who would not hesitate to seek XLCS's assistance in future endeavors. The transaction was guided by a skilled group, including Anthony Contaldo, Partner; Eric Schoendorf, Vice President; and David Silva, Senior Associate.
Commitment to Future Growth
As AFCO Industries moves forward under the ownership of Fulton Asset Management, the commitment to innovation and excellence continues. The strategic vision shared by both companies is expected to enhance AFCO's market presence and operational capabilities significantly.
About XLCS Partners, Inc.
XLCS Partners is a dedicated investment banking firm specializing in M&A advisory services for select clients worldwide. Their expertise and tailored approach position them as leaders in the industry.
Frequently Asked Questions
What is the significance of the AFCO sale to Fulton Asset Management?
This sale allows AFCO to access new resources and strategies to enhance its operations while keeping its leadership intact.
Who was involved in the advisory process for this transaction?
XLCS Partners acted as the exclusive advisor, led by experts including Anthony Contaldo, Eric Schoendorf, and David Silva.
What products does AFCO Industries manufacture?
AFCO manufactures a variety of building products, including columns, railings, and millwork door products, primarily made from aluminum and composite materials.
How long has AFCO Industries been in business?
AFCO Industries has been operational since 1946, marking over seven decades in the building products industry.
What is the strategic vision for AFCO post-acquisition?
AFCO aims to continue its growth and innovation in the building products market while benefiting from Fulton Asset Management's resources and operational support.
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