Aterian Investment Partners has acquired Johnstown Wire Technologies, a maker of carbon and alloy wire and a portfolio company of Ridgemont Equity Partners. Ridgemont first invested in Johnstown Wire in 1995.
“For more than 100 years, Johnstown Wire has been a leader with unmatched depth and breadth of its product portfolio and excellence in quality and customer service. We look forward to working with management and supporting the company in its growth and strategic initiatives while delivering value to its customers,” said Christopher Thomas, Partner of Aterian.
Johnstown Wire is one of the largest manufacturers of carbon and alloy wire in North America. The company focuses on customized specialty wire products consisting of cold heading quality, plated, and premium direct-drawn products where metallurgical quality is the differentiating factor. The company’s products are sold into a variety of end markets, including transportation, construction, utilities, and select consumer durables. The company has about 260 employees. Johnstown Wire was founded in 1911 and is headquartered in Johnstown, PA (www.johnstownwire.com).
“This transaction is a significant step in the company’s history. Aterian is a firm with a demonstrated track record of expanding product development and capabilities, investing in operations, and growing businesses alongside management,” said Walt Robertson, President of Johnstown Wire. “Aterian’s support will allow Johnstown to continue to drive results through execution of its strategic plan and its relentless focus on product excellence and customer service.”
Aterian Investment Partners invests in small-to-middle market businesses with $25 million to $500 million in revenues that are underperforming, turnarounds or otherwise unique situations. Industries of interest include consumer products; food and beverage; retail; restaurants; health care services; manufacturing; distribution; metals and mining; industrials; and chemicals & commodities. The firm will consider both control and non-control investments. Aterian is based in New York (www.aterianpartners.com).
The seller of Johnstown Wire, Ridgemont Equity Partners, focuses on middle market buyout and growth equity investments of $25 million to $75 million. The firm invests in the following sectors: basic industries and services; energy; healthcare; and telecommunications, media and technology. In August of 2010, the former Banc of America Capital Investors private equity team spun off from Bank of America to form Ridgemont. The firm is headquartered in Charlotte and has an additional office in Dallas (www.ridgemontep.com).
BB&T Capital Markets served as the exclusive financial advisor to Johnstown Wire. BB&T Capital Markets provides capital and advisory services including research, sales and trading, equity and debt underwriting, M&A advisory and corporate banking. BB&T is one of the largest financial services holding companies in the US with $182.7 billion in assets and a market capitalization of $23.8 billion, as of June 30, 2013. BB&T is based in Winston-Salem, NC (www.bbtcapitalmarkets.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-13-14