Morgenthaler Private Equity (MPE) has made an investment in Bettcher Industries, a manufacturer of food processing, foodservice equipment and medical devices. MPE is investing in the company alongside its employee stock ownership plan (formed in October 2014) which will retain a significant minority ownership stake in the company.
The investment from MPE provides Bettcher with access to additional capital and resources as it continues to execute its growth plan which includes actively seeking add-on acquisitions. The entire management team and structure of Bettcher Industries remains unchanged and the business will continue to be led its current President and CEO Don Esch. “These are exciting times for Bettcher. This strategic move positions us to accelerate our growth and further expand our market activities, even as we continue to operate our existing businesses exactly as before,” said Mr. Esch.
Bettcher Industries is a developer and manufacturer of cutting tools used in food processing operations and industrial applications. The company manufactured the first mechanically powered hand-held meat trimmer in 1954 and since then has introduced successive design generations of trimmers which are sold under the Whizard and Bettcher Quantum brand names and are used in meat processing plants in the United States and more than 50 other countries.
Bettcher also manufactures AirShirz pneumatic scissors, which are designed to reduce the pain and fatigue associated with using manual scissors in repetitive cutting activities. AirShirz scissors are used in meat and poultry processing plants and in non-food applications such as cutting engineered fabrics, rubber, and wire mesh. In addition, Bettcher manufactures equipment and products used in the foodservice industry including automated batter breading machines, sifter tables, and gyros electric knives. In 2011, Bettcher formed Exsurco Medical to develop and commercialize radial cutting technology that improves cadaveric tissue recovery and processing in the tissue bank industry.
“Bettcher is a global leader in its markets and has built its business through a rich history of product innovation and superior customer service,” said Peter Taft, an MPE Partner.
MPE invests in lower middle market companies that are valued from $25 million to $150 million and have EBITDAs between $5 million and $20 million. Sectors of interest include high-value manufacturing and industrial services. The firm has offices in Cleveland and Boston (www.mpepartners.com).
“We have been incredibly impressed by the strength and depth of the Bettcher leadership team. We look forward to partnering with Don Esch and the rest of the team as they execute the company’s multi-faceted growth plan, including actively seeking add-on acquisitions,” said MPE Partner Karen Tuleta.
Bettcher was founded by Louis Bettcher in 1944 and has manufacturing, warehouse, sales and service facilities in the United States, China, Brazil and Switzerland. Bettcher is headquartered west of Cleveland in Birmingham, OH (www.bettcher.com) (www.exsurco.com) (www.gainco.com).
© 2017 Private Equity Professional | October 6, 2017
