September 1, 2007

 

CPM acquires Crown Iron Works to gain heft in oilseed industry

 

 

California Pellet Mill Co (CPM), a major manufacturer of pellet mills in the US, has announced it is acquiring Minneapolis, Minn-based Crown Iron Works, a company manufacturing equipment for oilseed extraction and other processes.

 

The purchase was made under one of CPM's subsidiary - Roskamp Champion. The company, established in 1883, produced the world's first commercially successful pellet mill in 1931.

 

With the acquisition, CPM will go from focusing on the prep side of oilseeds and equipment sales all the way through extraction, refining, bleaching and deodorizing, said Jim Hughes, vice president of CPM acquisitions.

 

CPM specialized in equipment for the oilseed, feed and other related industries. According to the company, it has supplied more than 50 percent of all pellet mills in the world.

 

Crown Iron Works specializes in thermal, mechanical and chemical process equipment for the oilseed extraction, edible oil refining, oleochemical and biodiesel industries.

 

The acquisition also brings CPM into the increasingly popular biodiesel and alternative fuels sector.

 

CPM president Ted Waitman said the union of Crown and CPM creates the only single-source equipment supplier for complete oilseed preparation and extraction processes.

 

The two are no strangers to each other: Crown has been a major customer of CPM for years.

 

The acquisition is the biggest for the century-old company, doubling its size and giving it control of two other subsidiaries in important markets: Europa Crown Ltd. in Hull, England, and a majority joint venture interest in Crown Friendship Engineering Co. based in Wuhan, China.

 

Jeff Scott, Crown Iron Works vice president of sales and marketing, said Crown Iron Works could continue operations at its current locations and the organization name would likely remain, along with an intact workforce.