Mill Point Capital has acquired KKSP Precision Machining, a manufacturer of machined metal components, from CapitalWorks which acquired the company in May 2012.
KKSP is one of the largest manufacturers of machined metal components produced on automatic screw machines. The company has more than 425 screw machines in four locations in the US and Mexico and machines over 220 million parts annually.
The company’s brass, steel, and aluminum products are used by its customers in a wide range of applications in the HVAC, fire suppression, appliance, automotive, heavy truck, plumbing, medical and marine industries. KKSP was founded in 1968 and is headquartered near Chicago in Glendale Heights, IL (www.kksp.com).
“Our partnership with Mill Point provides meaningful resources that will allow us to accelerate our strategic plan, in particular with strategic acquisitions that broaden our capabilities and service offering to customers,” said Dave Dolan, President of KKSP. “We are very excited to partner with the Mill Point team.”
Mill Point makes control-oriented investments of $15 million to $80 million in middle-market companies that have enterprise values of $50 million to $250 million. Sectors of interest include business services and industrial. Mill Point has invested in manufacturing businesses similar to KKSP. In May 2016, the firm acquired Metal Powder Products, a Westfield, IN-based manufacturer of gears and sprockets, structural parts, high-strength aluminum parts and high-stress, wear and magnetic application components. Mill Point is based in New York (www.millpoint.com).
“We have been impressed by KKSP’s strong track record of growth and continuous improvement,” said Dustin Smith, a Partner at Mill Point. “We look forward to supporting KKSP’s management team as they advance the company’s strategic growth plan.”
CapitalWorks, the seller of KKSP, invests in companies that have revenues of $15 million to $75 million and EBITDA of $3 million to $9 million. Sectors of interest include niche manufacturing, value-added distribution, business services, aerospace and defense, and specialty chemicals. CapitalWorks was founded in 1999 by Rob McCreary and is headquartered in Cleveland (www.capitalworks.net).
© 2017 Private Equity Professional | December 6, 2017
Alexandria Moulding, a portfolio company of Industrial Opportunity Partners (IOP), has acquired the assets of House of Fara, a manufacturer of standard, decorative, and embossed hardwood mouldings.
IOP focuses on acquiring middle-market manufacturing and value-added distribution businesses, typically with revenues between $30 million and $350 million. The firm targets businesses with strong product, customer, and market positions and provides both management and operational resources to support sales growth and operational improvements. IOP is headquartered in the Chicago suburb of Evanston (
HCAP Partners has sold its portfolio company Datashield, a cybersecurity services provider, to ADT, a portfolio company of Apollo Global Management. According to HCAP Partners, Datashield is one of the fastest growing cybersecurity firms in North America.
Frank Mora, Partner, and Nicolas Lopez, Principal, led the Datashield transaction for HCAP. “Since our initial investment in 2014, Datashield has done a fantastic job building out its platform and growing its business with new customer accounts. We were very pleased to work with the team to support the successful growth of Datashield and we look forward to their continued success and growth with ADT,” said Mr. Mora.
HCAP is a provider of mezzanine and equity capital to lower middle market companies throughout the western United States. The firm invests from $2 million to $9 million in businesses generating between $10 million and $75 million in revenues. Sectors of interest include healthcare, software, services, and manufacturing. HCAP has invested in over 60 companies since its founding in 2000 and is based in San Diego (
ADT, acquired by Apollo in February 2016, is a provider of security and automation services for homes and businesses in the United States and Canada. ADT is headquartered in Boca Raton, FL (
Frontier Capital has held a final close of its fifth fund at an oversubscribed $700 million. The firm began fundraising in May 2017 with an initial target of $500 million. The firm’s earlier fund closed in 2015 with $390 million of capital.
Limited partners in Fund V include both new investors and investors in existing Frontier funds. “Frontier is extremely pleased with the response to Fund V and we appreciate the trust and confidence that our limited partners have placed in Frontier and its ability to drive growth and create enterprise value for the companies we partner with,” said Richard Maclean, a Managing Partner at Frontier Capital. “We have added a number of prominent institutional investors to our already strong institutional investor base, many of whom have been with us since our start.”
“While we will maintain our focus on minority and majority stakes in growth-stage, lower middle-market software and tech-enabled business services companies, Fund V will enable us to make larger investments and provide the technology, talent and other resources that we believe the companies we invest in need to succeed,” said Andrew Lindner, a Managing Partner at Frontier Capital.
