CORE Industrial Partners has acquired Midwest Composite Technologies, a provider of 3D prototyping and low-volume production services, as well as CNC machining, injection molding and industrial design.
Midwest Composite Technologies’ (MCT) technical capabilities include laser sintering, poly-jet printing, stereolithography, fused deposition modeling and multi-jet fusion technologies. Customers of MCT are active in the medical, aerospace, research & development, consumer and industrial end markets.
The company has a 120,000 square foot operating facility and headquarters located west of Milwaukee in Hartland, WI. MCT was founded by its President Helmut Keidl in 1984 (www.midwestcomposite.com).
“On behalf of the Keidl family and all MCT employees, we are thrilled to partner with the CORE team,” said Mr. Keidl. “For three decades, Midwest Composite has been on the cutting edge of the burgeoning additive manufacturing industry, and now with access to CORE’s extensive resources and network of seasoned operating professionals, we are eager to work together to drive explosive growth in the business.”
MCT is the first acquisition by CORE as it executes an investment strategy to build an Industry 4.0 platform. Industry 4.0 refers to the current trend of automation and data exchange in manufacturing technologies. The goal of Industry 4.0 is the creation of “smart factories” that utilize cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.
“MCT is an important acquisition for CORE as it will serve as the platform investment for building a cutting-edge Industry 4.0 additive manufacturing company through both organic growth and complementary add-on acquisitions,” said John May, Managing Partner and Founder of CORE.
CORE makes control investments in companies that have revenues from $10 million to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors. CORE was founded in 2017 and is headquartered in Chicago (www.coreipfund.com).
“MCT’s full suite of in-house additive manufacturing technologies facilitates industry-leading turnaround times, including same-day processing and shipping,” said TJ Chung, Senior Partner at CORE, and now the chairman of the MCT board of directors. “Our investment in the company is representative of our desire to acquire leading lower middle market industrial technology businesses where we can utilize our unique experience as both investors and operators to identify and execute against a clear set of value creation initiatives.”
Monroe Capital (www.monroecap.com), a frequent provider of debt to CORE for its industrial acquisitions, led the debt financing for this transaction.
© 2018 Private Equity Professional | September 6, 2018