Silvan Industries

Situation

Silvan Industries, Inc. (“Silvan” or the “Company”), headquartered in Marinette, Wisconsin, is a recognized leader in the design, engineering, manufacturing and supply of pressure vessels to major compressed air equipment and other industries in North America. The Company, founded in 1988, offers air receiver, as well as water vessels, including horizontal and vertical pressure filters, activated carbon containers, softener and DAF vessels, and water-related vessel types.

The Company serves clients in the filtration, medical, water, diving, painting, heavy equipment, petro-chem, energy, conveyance, mixing and air/gas compression industries.

Silvan has an excellent, long-standing reputation in the pressure vessel industry and has been particularly successful in expanding into new markets such as water treatment and medical industries.

The shareholders, who were not active in the daily operations, desired a liquidity event for estate planning purposes.

Solution

Amherst was engaged by the shareholders as the exclusive financial advisor to identify and approach buyer candidates that would provide the President and management team with the opportunity to participate in the growth of the Company.

Results

Amherst approached a select group of strategic and financial buyers and received multiple indications of interest at very competitive valuations. The shareholders selected Samuel Manu-Tech, Inc. (“Samuel”), currently Samuel Sons & Co Ltd., a CAD$1 billion Canadian company, as the buyer. Samuel processes and distributes metal, plastic and related industrial products and services primarily in North America.
Samuel’s offer was successfully negotiated subject to certain adjustments for working capital items.

This strategic acquisition complements Samuel’s existing Steel Fab operations in Virginia, allowing Samuel to expand its product range and to further grow its market share in the pressure vessel industry. Silvan executives will continue to grow the Company as integral members of the new management team.