Why This Matters to Distributors: Private equity investment in specialty distribution remains active, particularly in businesses with recurring revenue from parts, service, and rentals. The acquisition provides CMW Equipment with additional capital to expand its service offerings and geographic footprint while keeping its existing management team in place.
Borgman Capital has acquired CMW Equipment, a distributor of construction, aggregate and material processing equipment, expanding the Milwaukee-based private investment firm’s presence in industrial equipment distribution.
Terms of the transaction, announced July 15, were not disclosed.
Headquartered near St. Louis, CMW Equipment was founded in 1956 and serves customers across 10 Midwestern states. The company distributes concrete production, roadbuilding, aggregate, environmental and material processing equipment and provides equipment rentals, replacement parts, field service, project design, and technical support.
Borgman Capital said it will partner with CMW’s management team to support the company’s next phase of growth through expanded service offerings and entry into additional markets. The company did not disclose specific expansion plans or a timetable.
CMW President Larry Glynn, who joined the company as a sales representative in 1977 and later became an owner, will remain with the business.
Glynn said Borgman Capital’s investment will provide additional resources to support the company’s future growth while maintaining its existing operations.
Borgman Capital Founder and CEO Sequoya Borgman said the firm was attracted to CMW because of its operating history, management team, and established customer base.
Founded in 2017, Borgman Capital invests in lower middle-market companies and commercial real estate. The firm said the CMW transaction is its 21st acquisition.
The acquisition adds to Borgman Capital’s portfolio of equipment-related businesses, which includes Harlo, Durex Products and Aerial Work Platforms. The firm said it has experience investing in equipment distributors, dealer networks, and rental-based businesses.
The transaction reflects continued merger and acquisition activity in specialty distribution, where private equity firms have remained active buyers of companies with established regional market positions and diversified revenue streams that include equipment sales, rentals, replacement parts, and aftermarket service.
Bank of CMG provided senior financing for the transaction. Reinhart Boerner Van Deuren served as legal counsel to Borgman Capital, while True North Mergers & Acquisitions served as CMW’s exclusive financial adviser.
CMW Equipment is headquartered near St. Louis and provides equipment sales and aftermarket support to customers in construction, aggregates, environmental and material processing markets throughout the Midwest.
Do not miss any content from Distribution Strategy Group. Join our list.
Share this article:
