Kentucky Trailer, a subsidiary of Alleghany Capital that manufacturers custom trailers and truck bodies, recently agreed to acquire a majority interest in CEI Equipment Company headquartered in Cedar Rapids IA.
CEI, which is led by management members, Dan McDowell, Jim Ross and Jim Stoelk, produces and services of a range of aluminum feed transportation equipment.
“We look forward to partnering with Dan, Jim and Jim to further expand CEI’s leadership position within the feed transportation equipment industry,” said Gary A. Smith Sr, president and chief executive officer of Kentucky Trailer. “With this experienced team continuing to lead CEI post-transaction, the company’s day-to-day operations will not be impacted.
“However, with CEI joining the Kentucky Trailer family, we see meaningful avenues for both companies to accelerate growth as we continue to deliver the best solutions to our customers. In addition, we believe this transaction will provide exciting opportunities for both companies’ dedicated associates.”
CEI’s management members said: “CEI and Kentucky Trailer are driven to be the best in the world at design, build and service solutions in the transportation equipment industry. As we pursue our next stage of growth, we are pleased to partner with Kentucky Trailer and Alleghany Capital, both of which represent natural strategic partners for us as we seek to capitalize on the numerous opportunities we see in our market.”
The transaction, which is subject to customary closing conditions, was expected to close by the end of 2018.
“This transaction further expands Kentucky Trailer’s capabilities, scale and geographic reach within the custom trailer and truck body industry and is consistent with Kentucky Trailer’s strategy of building leading positions in specialized transportation equipment markets,” said David Van Geyzel, president and CEO of Alleghany Capital.
“Alleghany Capital looks forward to supporting Kentucky Trailer and CEI in the years to come as they pursue both organic and acquisition growth opportunities together.”