Aterian Investment Partners has acquired Pioneer Metal Finishing, a Wisconsin-based provider of metal finishing services, from Prairie Capital, which held a minority interest, and other family owners.
Pioneer Metal is a provider of outsourced anodizing, plating, hardcoat, adhesive, electroless nickel, and other surface treating services. The company has approximately 3,500 customers that are active in numerous end markets including, among others, general industrial, automotive, aerospace, and food & beverage.
Pioneer Metal operates seven facilities across the United States in Michigan (3), Minnesota, Wisconsin, Oregon, Indiana, and one facility in El Marques, Mexico. The company was founded in 1945 and is headquartered in Green Bay, WI (www.pioneermetal.com).
“This transaction will allow for Pioneer to supercharge into its next stage of growth with an ownership group focused on operations and performance,” said Pioneer’s CEO Bob Pyle. “We are looking forward to Aterian’s support to help the company pursue growth initiatives and continue providing high-quality services to our customers.”
“We are excited to add Pioneer to the Aterian portfolio and for the opportunity to collaborate with management as the company enters the next chapter in its long history,” said Brandon Bethea, a Partner at Aterian. “We intend to facilitate management’s efforts to invest in key growth initiatives across new products and regions and by doing so support the company’s existing reputation for outstanding customer service.”
Aterian invests up to $50 million in small-to-middle market businesses with $25 million to $500 million in revenues that are underperforming, turnarounds or otherwise unique situations. Aterian held a first and final closing of Aterian Investment Partners III LP with $350 million of committed capital in July 2018. Aterian’s earlier fund closed in December 2013 with $257 million of capital commitments. The firm was founded in 2009 by Brandon Bethea, Michael Fieldstone and Christopher Thomas and is based in New York (www.aterianpartners.com).
“This transaction is a great example of Aterian’s ability to expediently execute on complex situations,” said Daniel Phan, a Vice President at Aterian, “This transaction required agreement among multiple strategic parties in advance of closing and involved international dynamics. We are pleased to have worked with and provided solutions for the sellers throughout the process.”
Kayne Anderson Capital Advisors (www.kaynecapital.com) provided both senior debt and mezzanine financing to support this transaction.
Livingstone Partners (www.livingstonepartners.com) was the financial advisor to Pioneer Metal Finishing.
© 2018 Private Equity Professional | August 3, 2018