Wynnchurch Capital has acquired Detroit Tool Metal Products in partnership with a management team led by Chief Executive Officer Terry Wogan. This is the first in a series of planned investments by Wynnchurch in the metal fabrication sector. The firm’s goal is to build one of the largest Tier-1 fabrication businesses in North America.
Joining Mr. Wogan’s executive group is Dani Goldsmith (Chief Operating & Financial Officer), Marty Kozarec (Vice President of Sales) and Don Miller (Vice President of Engineering). This group of executives are long-time colleagues that have developed a model that delivers automotive quality and delivery to the standard tool metal fabrication space.
“We are excited to partner with this experienced group of managers and support the rollout of their proven operating model. We are confident that together we can create a true leader in the metal fabrication space,” said John Hatherly, Founding Partner of Wynnchurch.
Detroit Tool is a manufacturer of precision metal stampings, fabricated components and value-added assemblies for the heavy truck, construction, industrial, and agricultural end-markets. The company was founded in 1947 and is based in Lebanon, MO (www.dtmp.com).
Wynnchurch and Mr. Wogan intend to leverage the team’s operating track record to make strategic acquisitions and build a fabrication platform the “likes of which does not currently exist in a space dominated by smaller operators”. “Detroit Tool is the perfect asset to serve as the cornerstone of our platform”, said Mr. Wogan. “The company serves industry leaders in the heavy truck, agriculture and construction sectors from its centralized location in Missouri and has process capabilities spanning medium to heavy fabrication as well as stamping.”
Senior debt financing for this transaction was provided by Bank of the West. Bank of Montreal provided mezzanine financing and an equity co-investment.
Wynnchurch Capital makes investments of $10 million to $90 million in middle-market companies that have revenues of $5 million to $500 million. Sectors of interest include niche manufacturing, transportation & logistics, business services, value-added distribution, energy and power services, general industrials, and metals & mining. Wynnchurch Capital is located in the Chicago suburb of Rosemont with additional offices in Dallas, Detroit, and Toronto (www.wynnchurch.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-1-13
