Industrial Growth Partners has acquired Royal Die & Stamping in partnership with the company’s management team.
Royal Die & Stamping (RDS) is a supplier of high-precision electrical connectivity components used in automotive, electrical, life safety and telecommunications applications. Using complex metal alloys the company designs and manufactures battery terminals, eyelet terminals, fuse components, lead frames, and other electrical connectivity-focused products.
RDS was founded in 1938 by Ole Jensen and originally produced metal stampings used in radio and television sets. The company is headquartered in the Chicago suburb of Carol Stream (www.royaldie.com).
According to Industrial Growth Partners (IGP), the company is poised to benefit from secular trends driving more electrical content in automobiles, which have enabled RDS to outperform its core end markets over the past decade. The transaction creates a platform for RDS to accelerate growth in the global automotive market, expand into adjacent markets and pursue selective global acquisition opportunities.
“IGP’s deep experience in the manufacturing sector and over twenty years of experience in helping family-owned businesses like Royal successfully transition to becoming private equity-backed made the firm an ideal equity partner for us,” said Erik Freitag, President of RDS. “We look forward to leveraging the firm’s expertise to strengthen our position in our core markets and to help expand our business globally and into new markets.”
Industrial Growth Partners invests in North American-based manufacturing and manufacturing services companies that have histories of profitability and revenues of up to $250 million. Sectors of specific interest include industrial components and equipment; electronic equipment; process instrumentation and controls; analytical instruments; fluid control, filtration and pumps; specialty chemicals; energy equipment and services; plastics and synthetic materials; healthcare and safety equipment; manufacturing services and testing; and aerospace and defense components. IGP was founded in 1997 and is based in San Francisco (www.igpequity.com).
The buy of Royal Die & Stamping is the fourth platform investment for IGP’s fifth fund.
© 2017 Private Equity Professional | April 27, 2017
