September 2, 2019
Alleghany Capital Corporation (“Alleghany Capital”), a wholly-owned subsidiary of Alleghany Corporation, today announced the formation of Precision Cutting Technologies, Inc. (“Precision Cutting Technologies”) and the acquisition by Precision Cutting Technologies of a majority interest in Coastal Industrial Distributors, LLC, dba CID Performance Tooling (“CID”). Headquartered in Saco, Maine, CID is a leading manufacturer of high-performance solid carbide end mills. Precision Cutting Technologies is Alleghany Capital’s new holding company for its subsidiaries in the machine tool and consumable cutting tool sectors, which include Bourn & Koch, Inc. (“Bourn & Koch”), acquired in 2012, Diamond Technology Innovations, Inc. (“DTI”), acquired in 2016, and CID.
David Van Geyzel, President and Chief Executive Officer of Alleghany Capital, commented, “This transaction furthers Alleghany Capital’s growth strategy in the machine tool and consumable tooling industries. While the formation of Precision Cutting Technologies will not change the management of Bourn & Koch, DTI, and CID, it places these companies under a single platform so that they can share resources and leverage their combined capabilities to provide an enhanced product and service offering to their customers. Alleghany Capital is pleased to welcome CID to the Precision Cutting Technologies group of companies and looks forward to supporting Bourn & Koch, DTI, and CID as they continue to serve their markets.”
Terry Derrico, President of Precision Cutting Technologies and Bourn & Koch, added, “We are excited to partner with Jay Lowery, founder and President of CID, as well as his experienced team, and believe that the employees, customers, and suppliers of all the companies within the Precision Cutting Technologies platform will benefit from this acquisition. CID enhances Precision Cutting Technologies’ portfolio of consumable cutting tools, while expanding our business in the aerospace, defense, and medical end-markets. With Jay continuing to lead the company post-transaction, CID’s day-to-day operations will not be impacted. However, we believe CID will be well positioned to accelerate growth and augment its geographic reach by leveraging the experience, capabilities, and support of Bourn & Koch, DTI, and Alleghany Capital.”
“Over the past thirty years, CID has become a leader in producing the highest quality custom tooling solutions for customers serving the most demanding end-markets,” stated Jay Lowery. “As we build on our proven track record of quality, innovation, and service, we are pleased to have found a long-term home for the company and are excited about the opportunities that will result from this transaction.”
Dinan & Company, LLC, Translink affiliate in the US, acted as financial adviser and Olshan Frome Wolosky LLP acted as legal counsel to Alleghany Capital. Ainsworth, Thelin & Raftice, P.A. acted as legal counsel to CID.
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Dinan & Company, LLC is the partner firm of Translink Corporate Finance in the United States. It is a leading diversified financial services company with over 32 years of advisory and merchant banking experience dedicated to middle-market transactions.