The Business

Magnum Systems, Inc. (www.magnumsystems.com) is a Kansas City, Kansas-based designer and manufacturer of packaging and material handling systems for dry bulk solid and powder materials. Magnum has developed a full range of value-added equipment solutions that address the specific needs and performance requirements of customers in a variety of markets, including agriculture, food, chemical, industrial, and plastics, among others. Through its Taylor Products brand, Magnum provides packaging solutions, including bag weighing, filling and unloading equipment, as well as robotic and automated packaging solutions. Through its Smoot brand, Magnum offers a full spectrum of custom pneumatic conveying systems that are used to efficiently transport dry bulk solids within a facility over long distances.

 

The Industry

Magnum participates in both the $7+ billion U.S. packaging equipment and the $4+ billion U.S. pneumatic conveying industries.  Within its product niche, Magnum has emerged as a leading provider of equipment designed to handle free-flowing materials that are difficult to package or convey in all types of manufacturing environments.  Continued demand for Magnum’s solutions will be driven by (i) manufacturers focused on reducing labor costs and improving plant efficiency and throughput, (ii) facility expansion, (iii) upgrade or replacement of new equipment, and (iv) end user demand for a single-source, fully-integrated equipment solution.

 

The Process

Prestwick Partners initiated this transaction and acted as the exclusive financial advisor to Magnum and Gen Cap America, a Nashville, Tennessee-based private equity group.  Prestwick designed an M&A process, prepared marketing materials, evaluated acquisition proposals and negotiated the transaction with Blue Sage Capital, an Austin, Texas-based private equity group. Prestwick’s process included both domestic and international strategic acquirers as well as private equity groups.