SACO — The majority interest in a Saco manufacturing company that is a provider of high-performance 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.

The Saco company was founded by Jay Lowery and has been based southern Maine for the past 15 years. It operates its own ultra-modern coating facility, offering quick turnaround for projects, quality performance, convenience and cost savings, all derived from use of the latest in coating technology.

The CID company has been in business since the mid-1990s and generates an estimated $3 million in annual revenue while employing a staff of 14 people at its Saco manufacturing plant. Along with developing and manufacturing high performance carbide end mills, it designs products for material specific applications, as well as high-speed production environments.

Precision Cutting Technologies officials say that they are excited to work with Lowery and his team and they 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 the CID company.

“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 Chief Executive Officer of Alleghany Capital, said that the acquisition further demonstrates 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,” Van Geyzel said. “Alleghany Capital is pleased to welcome CID to the Precision Cutting Technologies group of companies and looks forward to supporting Bourn & Koch, DTI, and CID as they continue to serve their markets.”

Terms for the acquisition were not disclosed.

— Executive Editor Ed Pierce can be reached at 282-1535 or by email at editor@journaltribune.com

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