Alleghany Capital Corp., a wholly owned subsidiary of Alleghany Corp., announced Dec. 20 that its subsidiary, R.C. Tway Co. LLC (dba Kentucky Trailer), a leading manufacturer of custom trailers and truck bodies serving a variety of end markets, has reached a definitive agreement to acquire a majority interest in CEI Equipment Co. LLC.

Headquartered in Cedar Rapids, Iowa, CEI is a global industry leader in the production and service of a broad range of aluminum feed transportation equipment. CEI is led by management members Dan McDowell, Jim Ross and Jim Stoelk.

Gary A. Smith Sr., president and chief executive officer of Kentucky Trailer, said, "We look forward to partnering with Dan, Jim and Jim to further expand CEI's leadership position within the feed transportation equipment industry. With this experienced team continuing to lead CEI post-transaction, the company's day-to-day operations will not be impacted. However, with CEI joining the Kentucky Trailer family, we see meaningful avenues for both companies to accelerate growth as we continue to deliver the best solutions to our customers. In addition, we believe this transaction will provide exciting opportunities for both companies' dedicated associates."

CEI's management members added, "CEI and Kentucky Trailer are driven to be the best in the world at design, build and service solutions in the transportation equipment industry. As we pursue our next stage of growth, we are pleased to partner with Kentucky Trailer and Alleghany Capital, both of which represent natural strategic partners for us as we seek to capitalize on the numerous opportunities we see in our market."

David Van Geyzel, president and CEO of Alleghany Capital, added, "This transaction further expands Kentucky Trailer's capabilities, scale and geographic reach within the custom trailer and truck body industry and is consistent with Kentucky Trailer's strategy of building leading positions in specialized transportation equipment markets. Alleghany Capital looks forward to supporting Kentucky Trailer and CEI in the years to come as they pursue both organic and acquisition growth opportunities together."

The transaction, which is subject to customary closing conditions, is expected to close by year-end 2018.