Blue Point Closes Sale of Selmet

Blue Point Capital Partners has completed the sale of Selmet to Consolidated Precision Products (CPP), a portfolio company of Warburg Pincus.

Selmet is a manufacturer of complex, small to medium-sized titanium investment castings serving the aerospace and defense industries. Utilizing a centrifugal casting process, Selmet produces more than five hundred titanium parts including engine components, torque plates for landing gear, bearing housings and other airframe components.

Selmet is one of four primary suppliers of titanium aerospace and defense castings in the United States. The company, led by CEO Rick Kenyon, was founded in 1983 and is based south of Portland in Albany, OR (www.selmetinc.com).

Selmet was acquired by Blue Point in November 2011 and during its term of ownership the company’s earnings more than quadrupled. The company completed two add-on acquisitions under Blue Point: in March 2015 it acquired Wilsonville, OR-based Western Metrology, a manufacturer of precision aerospace, commercial and military components; and in August 2014 it acquired Mukilteo, WA-based Onamac Industries, a manufacturer and supplier of machined components and assemblies to the aerospace and defense industry.

“Selmet was identified as an opportunity where we would leverage our historical successes in the aerospace and defense sector and partner with an industry-leading management team,” said Mark Morris, a Partner with Blue Point. “It has been a privilege to work alongside Selmet’s team and execute on numerous value-creating initiatives assisted by the guidance of our industry and operational resources.”

Consolidated Precision Products, acquired by Warburg Pincus in October 2011, is a manufacturer of components and sub-assemblies for the commercial aerospace and defense markets. Founded in 1991, the company is one of the world’s largest investment and precision sand casting companies, producing complex super alloy, aluminum, magnesium and steel components for a wide variety of commercial and military aircraft, weapon systems, regional/business jets and helicopters. The company serves a range of global, blue chip customers including, Boeing, Airbus, Hamilton Sundstrand, General Electric, Honeywell, Pratt and Whitney, and Lockheed Martin. CPP is headquartered in Cleveland, OH (www.cppcorp.com).

Warburg Pincus has more than $45 billion in assets under management and has raised 16 private equity funds since its founding in 1966. In November 2015, the firm reached a final close of Warburg Pincus Private Equity XII LP at the hard cap of $12 billion. Warburg Pincus is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore (www.warburgpincus.com).

Blue Point, the seller of Selmet, is a lower middle market private equity firm that invests in manufacturing, distribution and service businesses that have from $20 million to $300 million in revenue and EBITDA greater than $5 million. The firm has over $800 million in committed capital and has offices in Cleveland, Charlotte, Seattle, and Shanghai (www.bluepointcapital.com).

Selmet was a portfolio company of Blue Point’s second fund, Blue Point Capital Partners II LP, which had a final closing in September 2007 with $400 million of capital commitments.

© 2018 Private Equity Professional | August 8, 2018

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