Fort Worth, Texas-based MAG Capital Partners, LLC, has acquired 3545, 3575 and 3615 3rd Avenue in Marion, Iowa, the corporate headquarters and manufacturing facility of Advanced Material Processing.
AMP focuses on material processing equipment for sectors including food and beverage, pharmaceutical, nutraceutical and chemical.
During the transaction, the greater Cedar Rapids community was battered by an almost unprecedented storm with sustained winds of 90 miles an hour for periods of up to 40 minutes at a time.
AMP was formed in 2019 through a merger with New Jersey-based Kason Corporation and the 80-year-old Iowa stalwart Marion Process Solutions. It is owned by Chicago-based private equity firm May River Capital, a company focused on lower middle market industrial growth companies according to its website.
AMP recently executed a sale-leaseback transaction at its Marion facility near Cedar Rapids, Iowa. The transaction unlocks significant value for AMP to redeploy toward its growth initiatives.
“As a general practice, we do not seek to own real estate as part of our portfolio investments, since real estate often fails to provide the higher levels of return that we seek in our investments, more generally. The heightened demand in the market for sale-leaseback transactions presents a unique opportunity to improve AMP’s capitalization, at relatively low rental rates, and enables us to redeploy the capital into higher value investments within this platform. I think you’ll see us doing more of these types of transactions, given the attractive market conditions,” commented Chip Grace, Partner, May River Capital.
The company occupies the entire 48,237-square-foot Marion property and utilizes the manufacturing, warehouse and newly constructed research and development space to scale its highly-engineered product portfolios to solve the material processing needs of customers across the U.S. Marion Process Solutions has a long history of successfully serving a loyal blue-chip customer base and is poised for future, sustained growth across multiple markets and revenue streams.
AMP’s facilities are proximate to major interstates, including I-380 and US-151. Strategic highway and rail networks also make it easy to move materials in and products out.
MAG Capital Partners’ portfolio includes facilities across the U.S. occupied by developers and contract manufacturers involved in a range of essential industries, including personal care products, food manufacturing, aerospace and technology.
MAG Capital Partners continues to have a keen eye for net-leased sale leaseback industrial transactions.
Katie Elliott of Stan Johnson Company’s Atlanta office represented the seller, May River Capital, in the transaction. MAG Capital Partners was represented by Mary Garnett and Jim Tuesley of Barnes & Thornburg LLP. The sale price was not disclosed.