Philip, SD – Emko Capital has recapitalized two iconic metal fabrication equipment brands — Scotchman Industries and Steelmax Tools — to create SMX Industrial Solutions. Hennepin Partners acted as Scotchman’s exclusive financial advisor and Gunderson, Palmer, Nelson & Ashmore, LLP was Scotchman’s legal advisor. Emko partnered with Tecum Capital and Woodforest National Bank to finance the transaction. Terms were not disclosed.
Scotchman is a leading manufacturer of hydraulic ironworkers, cold saws, and hydraulic presses. The company has a legacy of more than five decades and is renowned for its commitment to quality, innovation, and customer satisfaction. Steelmax is a key supplier of fabrication and welding mechanization solutions including magnetic drilling machines, plate and pipe bevellers, and trackless and track-mounted welding carriages.
SMX will enable Scotchman and Steelmax to bring a broader portfolio of industry-leading solutions to customers while maintaining each company’s identity and expertise. The new company will leverage Scotchman’s and Steelmax’s existing product portfolio, internal technology development, and additional acquisitions to offer a comprehensive and expanding portfolio of steel fabrication tools and solutions to customers in a broad array of industries including manufacturing, construction, and energy.
According to Jerry Kroetch, President and second-generation owner of Scotchman, “For nearly 60 years, Scotchman has provided world-class products and services to help our customers operate their shops as efficiently and profitably as possible. We believe the combination of Scotchman and Steelmax will strengthen our roots as an American manufacturer and allow us to serve our customers and our community for the next 60 years and we look forward to being a part of that future.”
“The combination of Scotchman and Steelmax offers immense potential for these two companies along with their communities and customers,” said Kevin Allen, CEO of SMX Industrial Solutions. “This combination brings together two companies with long histories of product innovation and commitment to customer service. Together, we will offer our customers an even broader range of fabrication products and services, as well as the expertise and support they need to succeed.”
“Emko is thrilled to support the combination of two iconic brands in the metal fabrication and welding industries, and we look forward to contributing to the continued growth of both businesses and formation of SMX Industrial Solutions,” said Dean Emmerton, Managing Partner of Emko Capital. Emko Capital, with offices in Philadelphia and Charlotte, is a leading lower middle market private equity firm specializing in investments in American manufacturing companies. Emko partners with businesses to create value and long-term success.