In-Place Machining Company Acquires Baton Rouge Machine Works
Background
Baton Rouge Machine Works, LLC (BRMW), headquartered in the Baton Rouge, LA area, has been a cornerstone in the heavy machine shop industry in the southern United States for over 50 years. Founded as a multi-generational business, BRMW has built a reputation for providing a comprehensive range of heavy machining and fabrication services. The Company supports major industrial sectors, including oil & gas, pulp & paper, power generation, and petrochemicals. Despite the challenges posed by the COVID-19 pandemic, BRMW continued to operate profitably and experienced a significant rebound in 2022, with revenues exceeding 2019’s record results by approximately 50%.
Strategic Divestiture
In 2008, BRMW was divested to MAN Turbo and Diesel, a prominent international equipment company, as part of MAN’s strategy to expand its presence in the U.S. manufacturing sector. However, in 2017, BRMW was reacquired by its original owners after MAN shifted its strategic focus away from North America. This reacquisition allowed BRMW to continue its legacy of quality and innovation, supported by consistent reinvestment into the company. Over the next three years, ownership invested approximately $3.5 million in new equipment and facility upgrades, ensuring BRMW’s facilities remained best-in-class. As BRMW re-established and began to grow its regional leadership position following COVID-19, ownership elected to pursue a strategic exit focused on industrial buyers seeking a significant “home base” in the Southeastern US.
Acquisition by In-Place Machining Company, LLC
In December 2023, BRMW was acquired by In-Place Machining Company, LLC (IPM). IPM, known for having the largest full-time team of specialized field technicians in North America, saw strategic value in BRMW’s robust service offerings and state-of-the-art facilities. The acquisition aligns with IPM’s goals: (1) to expand its business portfolio along the Gulf Coast where it did not have a physical presence and (2) to strengthen its position as a preferred turnkey solutions provider for customers IPM was already serving in other regional markets. By integrating BRMW’s capabilities, IPM also enhances its on-site and in-shop machining services, as well as its measurement and alignment services division.
Future Prospects
The acquisition of BRMW by IPM marks a new chapter for both companies. IPM is able to achieve its expansion goals for the Southeast US while BRMW benefits from IPM’s national footprint to serve customers on a national scale as well as its more significant technical resources. The strategic alignment of BRMW’s more plant-based machining services with IPM’s comprehensive field machining solutions also creates significant revenue enhancing opportunities.