PRESS

API Heat Transfer, a Cheektowaga heat exchanger manufacturer, has been acquired by Madison Capital Partners, a Chicago investment firm, in a deal worth $66 million.

API Heat Transfer, located at 2777 Walden Ave., is a former division of American Precision Industries. The business, which employs about 350 workers at plants on Walden Avenue and at API Air-Tech in Arcade, has been up for sale for nearly two years, ever since Danaher Corp. acquired the Cheektowaga-based heat transfer and motion control equipment maker in 2000 for $250 million.

"We think API is just a fabulous business," said Larry Gies, Madison's president and founder, who became interested in the company after being approached by Craig VanTine, the division's president, about participating in a buyout bid with management.

"The management team is a significant investor in this deal," Gies said Monday. "We employ management teams to build their business."

Gies and VanTine said they do not expect to make any major changes in the company or its operations, which also include facilities in Germany and Texas.

"What it means should be stability and growth," said VanTine, who noted that the division's growth plans have been on hold for two years while Danaher attempted to sell the unwanted business.

Madison has acquired a stable of machinery manufacturers and plastics processors since it was founded in 1994, including Holm Industries, a U.S. maker of tubing and gasket products it bought in 2000 and Industrie Ilpea SpA, an Italian company that makes similar products in Europe last year.

API Heat Transfer makes a wide range of products that are used on compressors, construction equipment and refrigeration products, especially by the food, beverage, chemical and paper industries.

Gies said API Heat Transfer should fit in nicely with Madison's other businesses. "The heat transfer side is perfect for us from a synergy standpoint," he said.

For instance, API's heat transfer products can be used on hydraulic presses or thermoforming machines used at Madison's other businesses. "We understand the markets they're in," Gies said.

From the start, Danaher officials indicated that they had little interest in keeping American Precision's heat transfer business. Instead, Danaher officials said they were drawn to American Precision by its motion control products and technology, which complemented the offerings that the Washington, D.C.-based company already had.

Danaher continues to operate several other former American Precision operations, including API Controls, API Deltran and API Motion in Amherst, and API Delavan in East Aurora.

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