Mill City Capital Acquires HN Precision
Search
Share on twitter
Share on linkedin
Share on print
Share on email

Mill City Capital Acquires HN Precision

Mill City Capital has acquired HN Precision, a manufacturer of machined products, from Cerberus Business Finance.

HN Precision’s capabilities include horizontal milling and turning, vertical milling, gun drilling, honing, broaching, centerless grinding, screw machining and laser etching. The company’s products are used in multiple end markets including heavy truck, off-highway vehicle, recreational firearms, rail, and general industrial.

HN Precision is led by CEO Dan Nash and it has 240 employees and 175 CNC machines with 300,000 sq. ft. of manufacturing space in Lake Bluff, IL (headquarters) and Rochester, NY (www.hnprecision.com).

“The Mill City team has a successful history investing in precision machining businesses, making HN Precision a great fit,” said Zander Rutlin, a Managing Director at Mill City Capital. “HN Precision’s management team and long-standing customer relationships across multiple industry verticals evidences a platform with significant upside. The business has a disciplined approach of perfecting manufacturing processes which aides and supports new business generation. There is a strong foundation at HN Precision that we look forward to growing with Dan Nash and his team.”

“I am very proud of how our business has evolved over the past several years, both through diversification of end markets and steady growth in five key industries. Our team is confident that Mill City can help us extend and enhance our ongoing growth strategy,” said Mr. Nash.

Mill City Capital invests from $10 million to $30 million of equity capital in companies with enterprise values of $30 million to $150 million and EBITDA of $5 million to $25 million. Sectors of interest include engineered industrial products; industrial services; transportation & distribution; agribusiness & food ingredients; food; and consumer products & services. Mill City focuses on companies headquartered in the Midwestern United States and western and central Canada, with a particular focus on companies located in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. The firm is based in Minneapolis (www.millcitycapital.com).

Angle Advisors was the financial advisor to HN Precision on this transaction. “I enjoyed working with the Angle team, and especially appreciated their attentiveness and dedication to a quick moving process and transaction,” said Mr. Nash. Angle Advisors has completed 185 transactions since 2009 for multinational corporations, privately-held companies, private equity funds, and public sector clients. The firm has offices near Detroit in Birmingham, MI; Houston, TX; Wiesbaden, Germany; and Shanghai, China (www.angleadvisors.com).

“HN Precision is an excellent company with a tremendous management team. We were impressed with Angle Advisors’ ability to understand its business and industry dynamics and execute a strategic transaction with a great financial sponsor in Mill City,” said Joseph Naccarato, Chief Operating Officer at Cerberus Business Finance.

Cerberus Business Finance, the seller of HN Precision, is the middle market lending group of Cerberus Capital Management. The group is based in New York (click HERE for the group’s website).

© 2018 Private Equity Professional | January 29, 2018

Share on twitter
Share on linkedin
Share on print
Share on email

To search in site, type your keyword and hit enter