SACO — The majority interest in a Saco company that manufactures solid carbide cutting tools has been acquired by Precision Cutting Technologies, Inc., a subsidiary of Alleghany Capital Corporation.

CID Performance Tooling, located at 6 Willey Road in the Saco Industrial Park, will join Alleghany Capital’s new holding company for subsidiaries in the machine tool and consumable cutting tool sectors, which include Bourn & Koch, Diamond Technology Innovations, Inc. and CID. Terms for the acquisition were not disclosed.

The Saco company was founded by Jay Lowery and has been based in southern Maine for 15 years. CID generates an estimated $3 million in annual revenue while employing a staff of 14 at its Saco manufacturing plant.

Officials at Precision Cutting Technologies said they are excited to work with Lowery and his team and envision a bright future for the company.

“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,” said Terry Derrico, president of Precision Cutting Technologies and Bourn & Koch. “CID enhances Precision Cutting Technologies’ portfolio of consumable cutting tools, while expanding our business in the aerospace, defense, and medical end-markets.”

Derrico said that Lowery will continue to lead the company following the acquisition and that 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,” he said.

Lowery agreed and said this is the right move for CID.

“Over the past 30 years, CID has become a leader in producing the highest quality custom tooling solutions for customers serving the most demanding end-markets,” Lowery said. “As we build on our proven track record of quality, innovation, and service, we are pleased to have found a long-term home for the company and are excited about the opportunities that will result from this transaction.”

David Van Geyzel, president and CEO of Alleghany Capital, said that the acquisition further demonstrates Alleghany’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,” Van Geyzel said.

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