Private equity shop American Securities on Tuesday announced that it has agreed to sell two of its portfolio companies to U.K.-based Rosebank Industries Plc in a deal that boasts an enterprise value of $3.25 billion and was built by three firms.

American Securities is selling CPM Holdings Inc. and ASP MWI Holdings Inc. with its subsidiaries operating under the MW Components brand for $3.05 billion, with a potential earnout payment of up to an additional $200 million, according to a Tuesday statement.

American Securities is selling CPM Holdings Inc. and ASP MWI Holdings Inc. with its subsidiaries operating under the MW Components brand for $3.05 billion, with a potential earnout payment of up to an additional $200 million, according to a Tuesday statement.

Weil Gotshal & Manges LLP advised CPM, MW Components and American Securities; Hunton Andrews Kurth LLP also advised MW Components, and Simpson Thacher & Bartlett LLP advised Rosebank Industries.

Headquartered in Blaine, Minnesota, CPM designs and makes highly engineered process equipment and automation systems. It serves a global customer base operating through three main segments: industrial solutions, engineered solutions, and process solutions mainly serving the animal feed, oilseed processing, renewable energy, food, and other industrial markets, according to Tuesday's statement. American Securities first invested in CPM in November 2018.

"American Securities has been an outstanding partner," said CPM CEO Dave Webster. "Their deep industrial expertise and active operational engagement enabled us to elevate our customer offering, broaden our capabilities, and further strengthen our organization. We are excited to carry that progress forward as we embark on this new chapter with Rosebank."

Headquartered in Charlotte, North Carolina, MW Components makes highly engineered bespoke fasteners, springs, and precision metal components. American Securities first invested in MW Components in 2017, the statement said.

"American Securities has played an instrumental role in MW Components' evolution," said MW Components CEO Thomas Amato. "Over the years, American Securities has brought thoughtful guidance and operational rigor to support the company's key growth and strategic repositioning initiatives. Their partnership has positioned MW Components well for continued success in the years ahead."

American Securities said it has partnered with both companies to speed up growth, improve operational effectiveness, and strengthen its competitive positioning.

"It has been a true privilege to partner with these exceptional management teams," said American Securities Founder and CEO Michael Fisch. "With Dave Webster's leadership at CPM and Tom Amato's leadership at MW Components, both businesses have built durable platforms for sustained success. We are confident that CPM and MW Components are well positioned to build on their momentum and pursue their next phase of growth with Rosebank."

For Rosebank, the company said the deal represents the next step in its "buy, improve, sell" strategy for creating shareholder value.

"This transaction represents the next step of the Rosebank journey … MW Components and CPM are high-quality businesses with much unrealised potential, and we are confident that our proven approach will unlock substantial value for shareholders," said Rosebank CEO Simon Peckham. "We are grateful for the strong and continued support from our shareholders and look forward to delivering."

The Simpson Thacher team advising Rosebank was led by partners Keegan Lopez and Lucy Gillett.

The Weil team advising American Securities, MW Components, and CPM was led by partners Ryan Taylor and Michael Lubowitz and included David Avery-Gee and Sarah Flaherty.

The Hunton team advising MW Components was led by M&A partners Austin Maloney and Doug Granger.