Ancor Capital Partners has acquired PMA Photometals, a designer and manufacturer of private-label and branded chemically-etched metal crafting dies used by crafting suppliers and consumers. The company also designs and manufactures industrial nameplates, thin metal parts and architectural signage which includes the ADA relief signage required by Federal law in all public buildings.
Photometals are anodized aluminum media that have been coated with silver salts. When exposed and developed, the image created using film, causes the image to turn black. While the pores of the metal are still open, the company can add anodizing color to the background. Anodizing colors are inorganic and meant for indoor use, otherwise, the plate will eventually revert back to black and silver. The final step is to seal the image inside the metal. This is done with a boiling solution that softens the anodic layer causing it to close the pores. The result is an image captured in the metal rather than on the metal which gives it excellent resistance to solvents, several chemicals and UV. Another advantage to photometals is the ability to capture crisp, minute detail, even photographs. Once film is generated for the graphic required, it can be used over and over again as in nameplates. Repeatability offers short run advantages over more expensive set-ups such as silk screening. PMA Photometals, founded in 1982, has 25,000 sq. ft. of manufacturing space with a capability of expanding to 75,000 sq. ft. The company is based in Phoenix (www.photometals.com).
“Teaming with Ancor enables PMA to effectively pursue significant growth initiatives,” said J. Michael Dywan, PMA President. “PMA takes great comfort that this is the right decision, based on Ancor’s record of success and its focus on a company’s people, passion, process and purpose.”
“We are excited to partner with the management team at PMA to help take the company to the next level,” said Ray Kingsbury, a Partner at Ancor Capital. “We will be investing further in the business to help it grow within several new areas, including fabrics, which will dramatically change the scope of the company.”
Ancor Capital Partners invests in companies with enterprise values of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is has offices in Southlake, TX and Dallas, TX (www.ancorcapital.com). With the acquisition of PMA Photometals, Ancor now has four manufacturing companies and five healthcare companies in its current portfolio.
Ancor financed the PMA acquisition with Independent Bankers Capital Fund (www.ibcfund.com) which provided subordinated debt and made an equity co-investment. First American Bank (www.firstambank.com) providing the senior financing.
© 2017 Private Equity Professional | February 9, 2017
