Chicago firm to buy transformer manufacturer Central Moloney
Central Moloney Inc. of Pine Bluff will be sold to a Chicago-based private equity firm, Wind Point Partners.
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USA, Pine Bluff: Central Moloney Inc. of Pine Bluff will be sold to a Chicago-based private equity firm, Wind Point Partners.
Transformer manufacturer Central Moloney Inc. of Pine Bluff will be sold to a Chicago-based private equity firm, according to Central Moloney’s chief executive officer. CEO Chris Hart said Friday that Wind Point Partners plans to complete the sale of the transformer manufacturer this month. He added that the sale, which Central Moloney began pursuing 11 months ago, is necessary for the company to free up capital space in order to expand.
“The point is not to get rid of the roots we’ve established, but to grow the branches,” Hart said. He declined to specify the actual value of the company because the sale process is ongoing. “This won’t look anything different from what Central Moloney is today,” Hart said. “Our headquarters will still be at 2400 West Sixth [Avenue] in Pine Bluff, Ark. We look to bring in a new generation of talent to facilitate the growth. They [Wind Point] will surround me with people who are way smarter than I am.”
Central Moloney has focused on growth in recent years. In July, the company announced it would build a 302,000-square foot facility at the Shoal River Ranch Gigasite in Crestview, Fla., to reach out to more qualified workers. The investment was estimated at $50 million, and the company planned 350 higher-wage jobs. Central Moloney also invested $20 million into a 140,000-square foot facility at Venture Crossing Enterprise Center in Panama City Beach, Fla., where single-phase, pole-mounted transformers are made.
Despite the upcoming sale to a Chicago firm, Hart said Central Moloney will stay headquartered in Pine Bluff, and he will still live in Pine Bluff. Groundbreaking is scheduled for either late this year or early next year with a projected opening date in either 2026 or 2027.
Central Moloney has been a wholly employee stock-ownership plan corporation since 1998, meaning that about 170 shareholders are either still employed by Central Moloney or are non-active participants. Those shareholders still have ballots and disclosure agreements at the moment, Hart said. While the parameters of the sale have been set, Hart added, they remain confidential.
Hart declined to specify what exactly led to the exploration of the sale, but he said easing out of an employee stock-ownership plan without a changing of the hands is virtually impossible. The plans tend not to last for their intended length of time, he said. The firm was selected through a search process facilitated by Stephens Inc. of Little Rock.
Source: Arkansas Online
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