Hidden Harbor Capital Partners has acquired Masterwork Electronics, a provider of electronic services.
Masterwork provides printed circuit board assembly (PCBA) services and cable and harness assembly for a range of original equipment manufacturers that operate in the telecom, industrial hardware, payment processing, electric vehicle charging, and home automation sectors. Each day the company produces more than 10,000 printed circuit board assemblies that are used in such applications as battery chargers for electric vehicles, the latest Coke and Pepsi “smart” machines and circuit boards for machine-to-machine devices.
The company is headquartered north of San Francisco in Rohnert Park, CA with production facilities in Mexicali, Mexico (www.masterworkelectronics.com).
“Masterwork has made significant investments in state-of-the-art manufacturing equipment and facilities in Mexico,” said John Caple, Managing Partner at Hidden Harbor. “We are excited about Masterwork’s growth prospects as it continues to focus on superior service, innovative solutions and a high-performance culture for the benefit of its customers, suppliers and employees.”
Masterwork was founded in 1994 by Rob Weed and is led by CEO Paul Morben. “Masterwork is eager to partner with Hidden Harbor, which will bring the resources and capital to continue our strong record of performance and support our next phase of growth,” said Mr. Morben. “With Hidden Harbor’s superior operational support, we will continue to provide best-in-class customer service to our customer base.”
Hidden Harbor makes investments in US-based companies with revenues between $50 million and $500 million and EBITDA from $5 million to $25 million. Sectors of interest include industrials, transportation and logistics, business services, and consumer products. Hidden Harbor is based in Boca Raton (www.hh-cp.com).
Masterwork is the third platform investment for Hidden Harbor. The two earlier transactions were the May 2018 acquisition of Fort Smith, AR-based Cloyes Gear and Products, a designer, manufacturer and distributor of timing drive systems and components for replacement applications in the automotive aftermarket and high-performance racing segment; and the August 2017 acquisition of Stella Environmental, a provider of municipal solid waste transfer station management and transportation services in the Texas and southwestern US market.
Silver Point Capital (www.silverpointcapital.com) provided financing to support Hidden Harbor’s buy of Masterwork. Configure Partners (www.configurepartners.com) and Lincoln International (www.lincolninternational.com) served as financing and M&A advisors, respectively, to Hidden Harbor. Investment bank B. Riley FBR (www.brileyfbr.com) was the financial advisor to Masterwork.
Hidden Harbor’s buy of Masterwork closed on July 27, 2018.
© 2018 Private Equity Professional | August 2, 2018
