Generation Growth Capital has acquired Innovative Laser Technologies, a maker of laser workstations used in the production of medical devices. The existing management team of the company will continue operating the business following the transaction.
Innovative Laser Technologies is a designer and fabricator of custom laser workstations used to produce components for numerous industries, including medical device, defense, energy and aerospace. Customers include medical device OEMs and many fortune 500 companies. The company is headquartered in Minneapolis (www.iltinc.com).
“ILT has solidified a niche in the custom laser workstation market and through our diligence process we learned that their customers really value the capabilities that ILT possesses,” said John Reinke, a Managing Director of Generation Growth Capital. “We plan on investing in new systems, processes and people to help manage the growth that the company is experiencing.”
“The founders of ILT did a great job of growing the company from scratch, building the solid reputation that the company enjoys in its markets today. We’re excited that they will continue to be partners with us going forward. We continue to be bullish on niche domestic manufacturing and companies that touch certain aspects of the healthcare industry,” said Cory Nettles, a Managing Director of Generation Growth Capital.
Generation Growth expects to make additional investments in the business to support future growth and implement operational best practices.
Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).
“GGC really understands the nature of our business. They recognize the value that we bring to our customers through technical expertise, service, and support. Throughout the transaction process GGC recognized the key areas of our business and will provide needed resources to continue to professionalize our company. I look forward to working with GGC to continue ILT’s strong growth,” said Fred Tsuchiya, President and CEO of ILT.
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-17-14