Gladstone Sells Alloy Die to PWP

PWP Growth Equity, the middle-market private equity group of Perella Weinberg Partners, has acquired Alloy Die Casting from Gladstone Investment Corporation.

Alloy Die Casting (ADC) is a provider of sand and investment casting, machining, robotic finishing, assembly and other services for short-run, high-complexity components to companies operating in the aerospace, defense, medical, automotive, and industrial sectors.

The company’s materials capability includes aluminum, zinc, stainless steel, and Inconel (a nickel-chromium-based alloy). ADC, founded in 1946 and led by CEO Rick Simpson, has approximately 150 non-union employees and operates from a 105,000 square foot facility in Buena Park, CA (www.alloydie.com).

“I am extremely excited about this new chapter for ADC. PWP Growth Equity and ADC share a similar culture and commitment to growth,” said Mr. Simpson. “This partnership will allow us to accelerate our investments in people, state-of-the-art equipment, and technology to support our customers’ growth.”

“We are excited to partner with Rick and the ADC management team,” said Dan Leever, an operating partner of PWP Growth Equity. “They have built an industry-leading company that is a trusted supplier to some of the most prominent OEMs in the world. We look forward to supporting ADC in their next stage of growth.”

As a part of the investment, Mr. Simpson, Mr. Leever, David Ferguson (partner and co-founder of PWP Growth Equity), and John McKee (managing director of PWP Growth Equity) will join ADC’s board of directors.

PWP Growth Equity makes both minority and control investments of $25 million to $100 million in lower middle-market companies that are active in the consumer, industrial and services sectors. The New York-based group is co-managed by partners Chip Baird and David Ferguson (www.pwpgrowthequity.com).

Gladstone Investment (NASDAQ: GAIN), which acquired ADC in September 2013, makes debt and equity investments in US-based small to middle-market businesses. The firm generally invests from $5 million to $30 million of debt and equity in companies that have from $3 million to $20 million in EBITDA. Gladstone Investment is based in McLean, VA (www.gladstoneinvestment.com).

Minneapolis-based Prestwick Advisors was the financial advisor to ADC and Gladstone on this transaction.

© 2019 Private Equity Professional | August 27, 2019

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