Thursday, May 10, 2001
Metal-cleaning business sold
CAE has 200 in West Chester
By Mike Boyer
The Cincinnati Enquirer
CAE Inc. said Wednesday it agreed to sell most of its West Chester-based Cleaning Technologies business to a private group that includes the company's management for $47 million.
The agreement, expected to be completed by month's end, concludes a year-old effort by Toronto-based CAE to divest the metal-cleaning business. The company plans to focus on its flight simulator and control technologies businesses.
This really shouldn't have any impact on our operations, said Stephen Temple, president of CAE Cleaning Technologies, who will continue to head the business and is part of the new ownership.
American Industrial Acquisition Corp., a Greenwich, Conn., private investment group, is acquiring the company with senior managers with a combination of cash, subordinated notes and preferred stock. It specializes in buying non-core operations of large companies.
CAE Cleaning Technologies employs about 200 in West Chester. It was created in 1997 around CAE Ransohoff, a Cincinnati company that has produced industrial metal-cleaning equipment for 85 years. CAE acquired Ransohoff in 1995.
In the past several years, CAE has won several large contracts to supply part-cleaning systems to automakers such as General Motors and Ford Motor Corp.
CAE Cleaning Technologies has about 600 total employees and $100 million in revenues. Mr. Temple said the company's long-term goal is boosting revenues to $250 million.
Included in the sale besides CAE Ransohoff are Ultrasonics in Jamestown, N.Y.; Beyss in Aachen, Germany; and Cleaning Technologies in Bradford, United Kingdom. CAE will continue to own a small operation in California.
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