Behind-the-Scene Factors That Helped Shape the Schafer Acquisition

We have been so pleased with the attention we have received from our  successful acquisition of Schafer Industries, a leading producer of high-precision, custom-engineered gears and machined parts as well as assembled axles, transaxles, transmissions, brake assemblies and other components for a wide variety of industries.

As with any decision of this magnitude, the transaction was consummated after long discussions, significant planning and a focus on the employees and the customers. However, we can attest to the relative ease with which the deal was finalized thanks to the integrity both sides of this partnership displayed and the trust that was quickly built.

We thought we would share some “behind the scenes” factors that helped shape this significant decision of “why Schafer” and “why HBM.”

• With its 82 year history, Schafer has been a family-owned, privately-held company with a long-standing culture of excellence, with the highest priority being the development of its employees. They deliver customer innovation and high quality service. With over 300,000 square feet of manufacturing space, Schafer facilitates high-precision and customer-engineered solutions for a variety of industries.

• We are planning sizable capital investments to expand the company, both organically and through acquisitions. Schafer, like our other portfolio companies, will benefit from our enterprise-wide solutions such as talent development, strategic planning, technology deployment and overall support.

• Schafer fits squarely within HBM’s investment focus in control acquisitions of specialty manufacturers with a focus on transportation as well as industrial equipment, energy, chemicals and minerals.   Further information about our investment criteria is always available. We seek companies with long-term growth potential driven by unique end market fundamentals or specific, actionable opportunities, along with sustained competitive advantage driven by a proprietary product or differentiated business model.

• In this competitive auction managed by a leading sellside banking institution, Schafer’s leadership team highly valued HBM’s long-term patient capital strategy, which we consider to be our true differentiator. The core of our strategy is that we acquire companies to add them to our portfolio indefinitely, not with an intention of reselling them. Our companies become part of the HBM family and are built and nurtured for their long-term success.

Click here to access Schafer’s website and learn more about HBM’s new portfolio company.