Stout Advised A.Y. McDonald on the Divestiture of its Pump Division

Stout has advised A.Y. McDonald Industries on the divestiture of its Pump Division to Baker Manufacturing Company, a portfolio company of Blue Sage Capital. Stout served as the exclusive financial advisor to A.Y. McDonald in connection with the transaction.

A.Y. McDonald, founded in 1856 and headquartered in Dubuque, Iowa, is one of America’s 100 oldest family businesses. The company is a leading manufacturer of water works, natural gas, and plumbing products with its headquarters, brass foundry, and manufacturing plant located in Dubuque, Iowa, with additional plants located in Albia, Iowa, and Elizabethton, Tennessee. The divestiture of the Pump Division enables A.Y. to focus on its core business operations and the redeployment of resources to more strategically aligned products within A.Y.’s waterworks portfolio. The Pump Division represented a small contribution to A.Y.’s overall revenue, and the Pump Division’s go-to-market channels did not strategically overlap with A.Y.’s other core business sales channels.

“This acquisition is a tremendous opportunity for Baker Manufacturing while allowing us to further enhance our focus on the water works, natural gas, and plumbing industries,” said Rob McDonald, CEO of A.Y. McDonald. “Baker Manufacturing is a trusted source with deep expertise in this market, and we are confident that they will continue to grow and enhance this pump division with the same dedication and quality our customers have come to expect.”

Mark Buchanan, Managing Director at Stout, said, “The Pump Division fits perfectly within Baker’s product offering and customer base to further penetrate the market. Baker serves similar end markets, and A.Y.’s Pump Division will be highly complementary to their product lines. Both companies also bring a long legacy of successfully serving customers for over a century with a focus on exceptional service and client experience. The combination of these businesses was highly strategic while achieving cultural alignment, a true win-win for everyone involved in this divestiture.”

Baker Manufacturing Company, located in Evansville, Wisconsin, is a vertically integrated manufacturer of water well equipment and accessories for residential, industrial, municipal, and environmental applications that has been in operation for over 150 years.

Blue Sage Capital is an Austin, Texas-based private equity firm that has been investing in profitable and growing lower middle-market companies since 2002. Blue Sage seeks to partner with founders, families, and management teams as the first round of institutional capital for businesses that enjoy leadership positions in niche manufacturing, environmental solutions, or specialty services industries.

Stout’s Mark Buchanan, Mark Padjen, Mike Jenny, Elliot Grove, Zach Ryan, Michael Gerszonovicz, and Patrick McNamara led the execution of the transaction.

Simmons Perrine Moyer Bergman served as legal counsel to A.Y. McDonald. Queen Saenz + Schutz served as Baker’s legal counsel.

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