Selling assets, Standex (NYSE: SXI) divests Federal Industries for $70 million to AeriTek

Standex International Corporation (SXI) has sold its Federal Industries display merchandising business to AeriTek Global Holdings LLC for approximately $70 million in enterprise value, the company announced March 9.

The divested business, previously part of Standex’s Specialty Solutions segment, generated net revenues of approximately $35.7 million in fiscal year 2025. AeriTek is a portfolio company of private equity firm Mill Point Capital.

“We are pleased to announce the sale of our Federal Industries business to AeriTek,” said Standex President and CEO David Dunbar. “AeriTek is a leading manufacturer of commercial refrigeration and food service equipment. We believe AeriTek is well positioned to enable the Federal business to grow and reach its strategic potential.”

Federal Industries manufactures refrigerated, heated and dry merchandising display cases for bakery, deli, confectionary and packaged food products used in restaurants, convenience stores, supermarkets and other retail establishments.

Standex plans to use the sale proceeds for organic growth opportunities, acquisitions and debt repayment in accordance with its capital allocation framework. The divestiture supports the company’s portfolio simplification strategy and enables greater focus on larger businesses and growth opportunities.