H-D Advanced Manufacturing Company, a portfolio company of Hicks Equity Partners and The Riverside Company, has acquired Innovative Mechanical Solutions and Leading Edge Heat Treatment (collectively, iMech).
iMech is a designer and manufacturer of bearings for the directional drilling motor industry. Customers include oilfield service companies and directional drilling companies. The company operates a manufacturing and heat-treatment plant in Edmonton (headquarters) and has a warehouse and distribution center in Houston (www.imech.ca). iMech will continue to be led by Founder and President Wayne Horley, and will be operated as an independent division within H-D.
“We are delighted to add a proven and promising company like iMech to H-D,” said Riverside Partner Tim Gosline. “H-D was established to partner with outstanding industrial companies like iMech, and we believe that iMech will be better positioned to serve its customers as part of the H-D family of companies.”
H-D Advanced Manufacturing is actively seeking add-on opportunities in gearing, bearings, and other heavy duty, precision-engineered component sectors.
Hicks Equity Partners and The Riverside Company partnered with Christopher DiSantis to form H-D Advanced Manufacturing Company in December 2012 to acquire heavy-duty, precision-engineered industrial components companies. HD’s first acquisition, also in December 2012, was the purchase of Overton Chicago Gear Corporation, a manufacturer and distributor of large, custom, mission-critical gears and gearboxes. Overton Chicago Gear was founded in 1888 and employs more than 200 people at three manufacturing facilities in the Chicago area (www.oc-gear.com).
“iMech is a great fit for H-D,” said H-D CEO Chris DiSantis. “We’re thrilled to be adding a new business line, exceptionally talented people and a tremendous customer base through this new partnership with iMech. iMech’s custom bearings are specifically designed and manufactured for the harsh environments in which they are used, resulting in a better bearing with a longer life.”
Working with Mr. Gosline on the transaction for Riverside were Vice President Rob Langley, Senior Associate Spencer Moore, and Associate Conner Harris. Origination Principal Erik Holmsen sourced the opportunity and Partner Anne Hayes worked on financing the transaction for the Riverside.
PNC Business Credit, GE Antares Capital and Babson Capital provided the financing, and KPMG, Jones Day and Gowling Lafleur Henderson advised Riverside on the investment.
The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 310 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 75 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Hicks Equity Partners is the private equity arm for Hicks Holdings, a holding company for the Thomas O. Hicks family’s assets. The firm invests in established companies with enterprise values of less than $200 million. Hicks Equity Partners is based in Dallas (no website found).
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13
