AUSTIN, Texas--(BUSINESS WIRE)--Blue Sage Capital announced today that it closed on the sale of Magnum Systems, Inc to 3 Rivers Capital, based in Pittsburgh, Pennsylvania. Patriot Capital and SharpVue Capital participated in the transaction by providing debt and equity financing. Magnum designs and manufactures mission-critical, customized systems and engineered components for automated material handling and packaging solutions. These solutions are primarily used to handle and package a variety of dry bulk solid substrates across the industrial, food, agricultural, and chemical end markets. The company also provides ongoing parts, service, and maintenance for its large installed base of products. Magnum is based in Lenexa, Kansas, with two additional manufacturing and fabrication facilities in Parsons, Kansas. Blue Sage invested in Magnum in October 2016 in partnership with the management team.
Peter Huff, Co-Founder and Managing Member of Blue Sage, stated, “We enjoyed working with President & COO Don Day, CFO Bill Mead, and the rest of the Magnum team. During our investment period, we were able to build on Magnum’s longstanding tradition of manufacturing highly engineered products that are recognized throughout the industry for their superior quality, performance, reliability, and ease of use, and we have positioned the company well for its next phase of growth.”
Blue Sage Partner Jonathan Pearce added, “We are proud of the hard work accomplished by our leadership team at Magnum over the past six years and couldn’t be more confident in the strategic direction of the business. Magnum has enjoyed a well-earned reputation in its core markets over decades of delivering for its customers, and we are proud to have played a small role in that history.”
Don Day, President & COO of Magnum, stated, “We were delighted to work alongside the Blue Sage team to build a leading manufacturer of automated material handling and packaging solutions. During our partnership, we developed a unified growth strategy, invested in engineering and manufacturing resources, and achieved high watermarks in numerous key performance metrics, including revenue, profitability, and bookings levels.”
Blue Sage was represented in the transaction by TM Capital (investment advisory) and Queen Saenz + Schutz PLLC (legal).
About Blue Sage
Blue Sage Capital is an Austin, Texas-based private equity firm that has been investing in profitable, growing, lower middle-market companies since 2002. Blue Sage has raised over $600 million of assets under management across its three institutional investment funds and seeks to partner with founders, families, and management teams as the first round of institutional capital for businesses that enjoy leadership positions in niche manufacturing, environmental solutions, or specialty services industries. Blue Sage typically invests $20 million to $40 million in control buyout investments and recapitalizations of companies with $20 million to $200 million of revenue.