CPM Holdings Announces $400 Million Investment from Koch Equity Development

Investment proceeds will fund a distribution to existing equity holders.

BLAINE, Minn., Jan. 23, 2024 /PRNewswire/ -- CPM Holdings, Inc. ("CPM" or the "Company"), a leading global supplier of engineered process equipment for animal feed, oilseed processing, extrusion, and thermal processing markets, today announced a $400 million strategic equity investment from Koch Equity Development LLC ("KED"), the principal investing and acquisition arm of Koch Industries, Inc. The proceeds of the investment will fund a distribution to the Company's existing equity holders.

Affiliates of American Securities LLC, a leading U.S. private equity firm and the current controlling shareholder of CPM, will continue to own a majority of the Company alongside KED and the Company's management team.

"CPM has remained a market leader after so many years because of its ability to be nimble, meeting the current needs of its customers while also seeing around corners to introduce new solutions," said Dave Webster, CEO of CPM. "We believe this new investment is a vote of confidence in the strategic plan we have been executing alongside American Securities and will be a powerful growth accelerant."

"The CPM management team, in partnership with American Securities, has done a tremendous job growing CPM over the past five years," said Mike Harris, a Managing Director of Koch Equity Development. "We are excited to partner with the current owners as the Company continues to innovate and deliver value for its customers."

"KED seeks to invest with like-minded partners and in best-in-class businesses that create superior value for customers. CPM fits this mold, and we look forward to supporting the Company as it continues to invest in new products and capabilities," added Mitchell Hanson, a Director of Koch Equity Development.

"CPM is synonymous with high-quality, versatile equipment across a broad range of industries," said Michael Sand, a Managing Director of American Securities. "We are proud of our partnership with the talented CPM team, and we are grateful for the support and confidence of Mike and the broader Koch team as we continue to pursue new opportunities for the Company."

"CPM management's passion and ingenuity have enabled the Company to maintain its position as an industry leader more than a century after its founding," added Michael Fisch, Founder and CEO of American Securities. "CPM's mission is to improve everyday life for people across the globe, and we are committed as ever to advancing this goal."

Goldman Sachs & Co. LLC served as financial advisor to CPM. Guggenheim Securities, LLC served as financial advisor to KED. Jones Day and Weil, Gotshal & Manges LLP acted as legal counsel to KED and to American Securities, respectively.

About Koch Equity Development LLC (KED)
Koch Equity Development is the principal investment and acquisition arm of Koch Industries, Inc. ("KII"), one of the largest privately held businesses in America. Since 2012, KED has deployed more than $35 billion in equity investments and acquisitions. With revenue as high as $125 billion, KII and Koch companies have 120,000 global employees operating in more than 60 countries.

About CPM Holdings, Inc.
CPM Holdings, Inc. (CPM) is a diversified leading global supplier of process equipment and engineered technologies that sustainably feed, fuel, and build a better world. With its growing family of 17 market-leading product brands, CPM serves a variety of industries including animal feed, consumer food, green energy, advanced materials and sustainable packaging. Founded in 1883, CPM has 1,700 employees across 36 facilities on 4 continents with presence in 150+ countries. From the foods you eat to the fuels you require, CPM plays an important role in making the world more efficient and more sustainable. For more information, visit OneCPM.com.

About American Securities
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion. American Securities and its affiliates have more than $27 billion under management. For more information, visit www.american-securities.com.

Contact Information

For American Securities
[email protected]

For KED
[email protected]

SOURCE CPM