H-D Advanced Manufacturing Company has acquired Crown Precision Machining, a provider of high-precision machining services to manufacturers serving the commercial aerospace and defense industries.
H-D was formed in December 2012 by a partnership among The Riverside Company, Hicks Equity Partners and Weinberg Capital Group to acquire and develop manufacturers of mission-critical, precision engineered components. H-D is led by Chris DiSantis, CEO, and Dale Mikus, CFO. H-D is actively seeking acquisition opportunities in gearing, bearing and other heavy duty, precision-engineered component sectors. The company is based in Pittsburgh.
Crown Precision Machining manufactures and assembles high precision machined components used in commercial aerospace and defense applications. Crown manufactures rod ends, caps, pinions, transfer tubes and other parts. These specialty components are incorporated into hydraulic actuation systems that control the movement of wings, rudders, landing gears, ailerons and flaps. Crown’s products are principally used on Boeing’s 737 platform but can also be found on Boeing 777, 787 and 747 aircraft as well as on business and regional aircraft. The company is headquartered in Irwindale, CA (www.crownprecision.com).
The buy of Crown is the fifth acquisition completed by H-D since being formed as a platform company by Riverside, Hicks Equity, and Weinberg Capital. “The H-D platform has made excellent progress since its formation less than two years ago,” said Tom Hicks, the founder of Hicks Equity Partners. “Crown is another important strategic addition to the platform Chris DiSantis and his team are building.”
The four other add-ons completed by H-D include Overton Chicago Gear – a manufacturer of large, heavy duty gears and gearboxes; Innovative Mechanical Solutions – a manufacturer of highly engineered, custom bearings for the downhole mud motor industry; Leading Edge Heat Treating Services – a provider of heat treating solutions; and Sungear – a manufacturer of high precision gears and assemblies for the aerospace industry.
The Riverside Company is focused on acquiring growing businesses that have valuations of up to $250 million. Since its founding in 1988, Riverside has invested in more than 340 transactions and the firm’s international portfolio includes more than 70 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com) (www.riversideeurope.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).
Weinberg Capital Group is a family office that specializes in acquiring middle-market companies that are based in North America and have annual revenues from $15 million to $100 million and EBITDA ranging from $2 million to $10 million. Sectors of interest include manufacturing, business services, medical and healthcare, aviation services, consumer products, and value-added distribution. Weinberg Capital Group is based in Cleveland (www.weinbergcap.com).
The Riverside Company’s Jeremy Holland was responsible for sourcing the acquisition opportunity, and H-D was advised on the transaction by KPMG and Jones Day.
Williams Capital Advisors (www.williamscap.com) – an investment bank based in Palo Alto – acted as exclusive advisor to Crown.
2014 PEPD • Private Equity’s Leading News Magazine • 10-17-14
