Vance Street Capital has acquired Motion Dynamics Corporation, a maker of components used in the medical device, industrial and aerospace markets.
Motion Dynamics is a maker of wire-based micro-components and sub-assemblies which are frequently found in micro-catheters, pacemakers and neuromodulation devices that stimulate the nervous system with electrical signals. The company’s products require fine and ultra-fine wire diameters, unique alloy types and shapes, high precision, and tight tolerances. The company crafts some of the smallest wire components in the world and can work with any cold formable material in sizes down to 0.0007″. Motion Dynamics was founded in 1992 by Dick Witham and has a 40,000 sq. ft. manufacturing and headquarters facility located northwest of Grand Rapids in Fruitport, MI (www.motiondc.com).
As part of the transaction, Chris Witham, the President of Motion Dynamics and the son of founder Dick Witham, will continue to lead the business in his current role and has retained a material ownership interest in the company. “Vance Street’s track record of supporting high-precision manufacturing businesses across the medical, aerospace and defense, and industrial end markets makes them the perfect partner to help Motion Dynamics grow and continue to provide the highest level of products and services to our customers,” said Chris Witham.
“The Motion Dynamics opportunity is a perfect situation for Vance Street to support a world-class management team that has positioned the company in attractive, high-growth end markets with a strong focus on providing customers the highest level of design and complex manufacturing services,” said John LeRosen, a Principal at Vance Street. “Chris and his senior management team have built a unique company and we are excited to help them take the business to the next level.”
The buy of Motion Dynamics is Vance Street’s second investment out of its second fund. In February 2016 the firm acquired A&E Medical Corporation, a medical device manufacturing company based south of New York in Farmingdale, NJ (www.aemedical.com).
Vance Street makes control investments in companies with enterprise values of $30 million to $200 million and EBITDA of $5 million to $20 million. Sectors of interest include aerospace, defense, industrial, and medical. The firm is based in Los Angeles (www.vancestreetcapital.com).
Co-investing in the equity for this transaction were Neuberger Berman, Northwestern Mutual, and New York Life affiliates Private Advisors and Madison Capital Funding. Senior debt was provided by Madison Capital Funding and BMO Sponsor Finance, and mezzanine debt was provided by Neuberger Berman and Northwestern Mutual.
Investment bank Charter Capital Partners (www.chartercapitalpartners.com) was the financial advisor to Motion Dynamics and Miller Johnson (www.millerjohnson.com) provided legal services. Vedder Price (www.vedderprice.com) was the legal advisor to Vance Street Capital.
© 2016 Private Equity Professional • 9-15-16
