Company Acquisition and Formation of New Holding Company

Bourn & Koch’s parent company, Alleghany Capital Corp., has acquired Coastal Industrial Distributors LLC, (doing business as CID Performance Tooling); and has formed a new holding company for its subsidiaries in the machine tool and consumable cutting tool sectors. CID is a manufacturer of solid carbide end mills. The new holding company formed by Allegany Capital, called Precision Cutting Technologies includes Bourn & Koch Inc., Diamond Technology Innovations Inc. (DTI) and CID.

David Van Geyzel, president and CEO of Alleghany Capital, says, "This transaction furthers Alleghany Capital's growth strategy in the machine tool and consumable tooling industries. While the formation of Precision Cutting Technologies will not change the management of Bourn & Koch, DTI, and CID, it places these companies under a single platform so that they can share resources and leverage their combined capabilities to provide an enhanced product and service offering to their customers."

Terry Derrico, president of Precision Cutting Technologies and Bourn & Koch, adds, "We are excited to partner with Jay Lowery, founder and president of CID, as well as his experienced team, and believe that the employees, customers and suppliers of all the companies within the Precision Cutting Technologies platform will benefit from this acquisition. CID enhances Precision Cutting Technologies' portfolio of consumable cutting tools, while expanding our business in the aerospace, defense and medical end-markets. With Jay continuing to lead the company post-transaction, CID's day-to-day operations will not be impacted. However, we believe CID will be well positioned to accelerate growth and augment its geographic reach by leveraging the experience, capabilities and support of Bourn & Koch, DTI, and Alleghany Capital."