The investment banking firm of Brown, Gibbons, Lang & Company (“BGL”) announced it has completed the divestiture of Detroit Tool Metal Products (“DTMP”) for DT Industries, Inc. (“DTI”). DTI (NASDAQ:DTII), is a global manufacturer of automation systems and solutions for the assembly, testing and packaging of consumer and industrial products. DTMP, a division of DTI with over $35 million in annual revenues, manufactures stamped and fabricated metal component parts for a variety of industries. DTMP was acquired by an investor group led by Capital For Business of St. Louis, Missouri, and joined by InvestAmerica Venture Group, Kansas Venture Capital, Inc., and Kansas City Equity Partners, all based in Kansas City. DTMP’s management team also participated in the transaction. Terms of the transaction were not disclosed.
Stephen J. Perkins, CEO of DTI, said, “DTMP is the first of several non-core businesses that DTI intends to divest. This is a difficult environment for selling middle market companies, and we are very pleased with the results that BGL was able to achieve in the sale process.”
Stephen J. Miles, BGL vice president, who managed the sale process, commented, “This transaction is a very important first step in DTI’s efforts to reduce its debt burden and focus on its core business units. DTMP is an exceptional company with attractive growth prospects, and we believe both the buyers and seller are excited to have completed this transaction in such a challenging market.”