PE Firm Sells Two Industrial Businesses

The buyer of CPM and MW Components is Aurora Capital Partners, a private equity firm that recently acquired Anova, a provider of Industrial Internet of Things (IoT) technology. Aurora, founded in 1991, focuses on control investments in business services, industrial services, and tech-enabled services valued between $100 million and $500 million. This acquisition aligns with their strategy of scaling technology-enabled industrial businesses. American Securities acquired CPM, a global supplier of engineered process equipment for animal feed and other industries, in November 2018. MW Components, a manufacturer of precision industrial components, has been under American Securities' ownership since October 2017. The sale of these two companies is consistent with a broader trend of private equity firms exiting long-held industrial assets as investor pressure for returns mounts. The industrial manufacturing M&A market has seen a significant increase in deal value, which rose 90% year-over-year in 2025, even as the total number of deals slightly decreased. This indicates a trend toward fewer, but larger and more strategic, transactions. Private equity firms are actively pursuing companies with clear paths to digitalization and operational improvements, driven by the need to create value beyond financial engineering. For manufacturers, the regulatory environment is in a state of flux, with uncertainty at the federal level regarding OSHA and EPA regulations. At the state level, there is a growing focus on issues like PFAS chemicals and extended producer responsibility (EPR), which requires producers to manage the entire lifecycle of their products. These shifts create significant data collection and reporting challenges for manufacturers. Supply chain compliance remains a critical risk area, with increasing regulations around ethical sourcing, environmental impact, and product traceability. The European Union, for example, is implementing rules like the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), which have far-reaching implications for global supply chains. These regulations necessitate greater transparency and robust due diligence processes for U.S. manufacturers and their suppliers. Heightened U.S.-China trade tensions continue to disrupt global supply chains, forcing manufacturers to reassess their sourcing strategies. While tariffs aim to encourage reshoring, many companies are adopting a "China+1" strategy, diversifying their production to countries like Mexico and Vietnam to mitigate risk. This geopolitical friction increases operational costs for manufacturers reliant on Chinese components and creates a need for greater adaptability. The Securities and Exchange Commission (SEC) is also increasing its focus on non-financial disclosures. While a broad climate reporting rule has been suspended, the agency continues to push for greater transparency in areas like human capital management. This trend requires manufacturing CFOs and audit committees to develop robust internal controls and reporting frameworks for a wider range of qualitative and quantitative metrics.