Marwit Capital has sold its portfolio company Arc Machines to ESAB Welding & Cutting Products. Marwit sponsored a recapitalization of ARC Machines in partnership with its three founders and senior management team in 2008.
Arc Machines designs and manufactures automated orbital welding systems, including power supplies, weld heads, arc zone vision systems and related accessories. The company’s products are sold to more than 3,000 customers in 35 countries that are active in the power generation, semiconductor, oil & gas, aerospace & defense, pharmaceutical, food & beverage, and industrial construction markets. The company was founded in 1976 by Mindy Gedgaudas, Lou Reivydas and Vic Fukumoto. ARC Machines is headquartered north of Los Angeles in Pacoima, CA (www.arcmachines.com).
ESAB Welding & Cutting Products, a subsidiary of publicly traded Colfax Corporation (NYSE:CFX), is a producer of welding and cutting equipment and consumables. ESAB is based in Denton, TX (www.esabna.com).
Marwit invests from$10 million to $40 million in companies that have enterprise values up to $100 million, revenues of $20 million to $200 million and EBITDA in the range of $4 million to $20 million. Sectors of interest include infrastructure; healthcare services; healthy living products and services; industrial products and services; business services; renewable resources; and retail and entertainment. Marwit was founded in 1962 and is headquartered in Newport Beach (www.marwit.com).
Chicago-based investment bank Livingstone was the financial advisor to ARC Machines. Karl Freimuth, a Managing Director and US Industrials Co-Head, led the transaction for Livingstone (www.livingstonepartners.com).
CohnReznick (www.cohnreznick.com) provided accounting due diligence services and RSM (www.rsmus.com) provided tax due diligence services to Arc Machines.
© 2017 Private Equity Professional | February 16, 2017
