Calder Capital is pleased to announce that Koester Metals, Inc. of Fremont, Indiana has been acquired by Distinctive Manufacturing Group of Bettendorf, Iowa!
Koester Metals, Inc., “KMI”, is a metal fabricator that was founded in 1975. KMI offers an array of services including contract manufacturing, powder coating and finishing, engineering, and value-added assembly services. In 1992, Gary Koester purchased the business from his father. Over the last 30+ years, Gary and his wife, Sylvia, have invested heavily in automation and processes to better serve KMI’s clients. In 2021, KMI named Gary and Sylvia’s son, Matthew, Vice President.
The family engaged Calder Capital to find a successor with the enthusiasm and energy to take KMI to new heights. They look forward to gradually reducing their day-to-day involvement in the business over the next two years. Gary and Sylvia are eagerly anticipating their well-deserved retirement, while Matthew is excited for more quality time with his three young sons and time to pursue his aspiration of becoming a professor.
“In business and outside of business, one of my goals has always been to have a lasting positive impact on people,” Gary shared. “I have been rewarded already by several current and prior KMI employees who expressed appreciation to me for doing just that! Going forward, I hope to spend a lot of time with Sylvia, our kids, and grandkids having fun and helping them in similar ways.”
Distinctive Manufacturing Group is led by Michael Miller and Mark Dalene of Bettendorf, Iowa. Both Michael and Mark have spent 10+ years working for John Deere in notable roles. Despite their success, the pair decided it was time for a change and sought to embark on an entrepreneurial journey. Their search for the perfect business opportunity led them to Koester Metals, Inc.
When asked what excites Michael most about the acquisition, he expressed, “The opportunity to build on the legacy that KMI has established over their long tenure in enclosure and sheet metal manufacturing. KMI has invested well in maintaining and improving the manufacturing technology and efficiency of the operation and that investment is going to enable DMG to continue to attract a new and diverse customer base with a focus on quality, flexibility and cost competitiveness.”
Rick Purcey of Calder Capital served as the lead Mergers and Acquisitions Advisor to Koester Metals, Inc. Calder Capital ran a strong process during which time, 98 potential buyers expressed interest, 14 site visits were led, and 4 offers were submitted.
“Rick and the Calder Capital team did a great job of preparing marketing material as well as the Confidential Information Memorandum which resulted in a significant number of interested parties,” Gary shared. “As a result, we were able to get multiple offers on the business and ultimately get a sale completed with an organization focused on the long-term success of what our family built.”
“Working with Rick was awesome,” Michael commented. “He assisted in every critical step of the process to ensure all parties had a successful outcome.”
“It’s always such a rewarding experience to help find a buyer that will continue a family’s legacy,” shared Rick. “I believe Michael and Mark are the absolute right fit and I look forward to seeing the continued success of KMI! I hope Gary and Sylvia enjoy all that retirement has to offer and am excited that Matthew will have the opportunity to follow his aspirations of becoming a professor! Congratulations to all.”
“Small manufacturing continues to be a core bread and butter market for Calder as we expand our business. Congratulations to Gary, Mark, and Michael on an excellent partnership for the successful transition of KMI,” stated Calder Managing Partner, Max Friar.
Calder Capital, LLC served as the exclusive Mergers and Acquisitions Advisor to Koester Metals, Inc.
The terms of the transaction were not disclosed.
About Koester Metals, Inc.
Founded in 1975, KMI is a metal fabrication company that provides services such as contract manufacturing, engineering, and more. The company is located in Fremont, Indiana, and has 46 employees. KMI’s mission is to help its clients succeed by identifying problems and solutions to overcome them. KMI’s knowledge, services, and processes are structured to improve product quality, reduce cycle times, and ultimately cut costs for its clients. To learn more, please visit https://www.kmienclosures.com/.
About Calder Capital, LLC
Founded in 2013, Calder Capital, LLC is a lower middle market investment bank providing mergers and acquisitions advisory services to business owners, entrepreneurs, family offices, and investors across the United States. Our dedicated team of professionals combines extensive industry experience, technological innovation, negotiation savvy, and key relationships to exhibit exceptional execution. Calder’s services include mergers and acquisitions advisory, private funds and capital markets advisory, and business valuations. To learn more, please visit https://www.caldergr.com/.