Arcline Investment Management, a private equity firm headquartered in San Francisco with $1.5billion in committed capital, submitted a preemptive offer to acquire the military business of the Company through their portfolio company Fairbanks Morse. Headquartered in Beloit, Wisconsin, they manufacture and service heavy-duty, medium-speed reciprocating engines under the Fairbanks Morse® and ALCO® brand names, which are used primarily in marine and power generation applications. From start to finish, the transaction took approximately 60 days. George Whittier, CEO of Fairbanks Morse, said “The acquisition of Ward Leonard expands the Fairbanks Morse product portfolio into complementary technologies, positioning us to serve as a power systems integrator to the U.S. Navy and U.S. Coast Guard.”

It was important to the shareholders that the buyer not only create satisfactory liquidity but also provide a great opportunity for management who will continue to lead the new combined company. Fairbanks Morse will maintain the approximately 150 employees based in Thomaston, Connecticut. Following the transaction, Mr. Carter will continue to manage Ward Leonard Energy which will operate its motor maintenance, service and repair businesses at its  locations in Houma, LA and Houston, TX.

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Jon Carter commented: “The divestiture process was complex, yet efficient and I’m pleased to say that Ward Leonard has found a perfectly complementary home in its affiliation with Fairbanks Morse. Over the many years we’ve known each other, the team at Carter Morse & Goodrich has played an invaluable role in the evolution of the company and in making this transaction happen. I am deeply appreciative of their guidance, professionalism and friendship.