CORE On Course Building Industry 4.0 Platform

Midwest Composite Technologies, a portfolio company of CORE Industrial Partners, has acquired FATHOM, a manufacturer with an expertise in 3D printing and additive manufacturing.

FATHOM provides rapid prototyping and low- to high-volume production services of parts used in the consumer products, electronics, medical, automotive, aerospace, sporting goods and product design sectors.

In addition to its to 3D printing and additive manufacturing capabilities – which include fused deposition modeling, multi-jet fusion, polyjet printing, laser sintering and stereolithography – FATHOM also has expertise in urethane casting, CNC machining, tooling, injection molding, engineering and design support, model finishing, and assembly.

FATHOM, with annual revenues of more than $25 million, was founded in 2008 by Rich Stump and Michelle Mihevc. The company is growing by 30% to 40% per year and has made the Inc. 500|5000 list of the country’s fastest-growing companies every year since 2013. FATHOM is headquartered in Oakland, CA with a second facility in Seattle (www.studiofathom.com).

CORE acquired Midwest Composite Technologies (MCT) in September 2018. MCT is a provider of 3D prototyping and low-volume production services. The company’s technical capabilities include laser sintering, poly-jet printing, stereolithography, fused deposition modeling, multi-jet fusion technologies, CNC machining, injection molding and industrial design. Customers of MCT are active in the medical, aerospace, research & development, consumer and industrial end markets. The company, founded in 1984, has a 120,000 square foot operating facility and headquarters located west of Milwaukee in Hartland, WI (www.midwestcomposite.com).

“The acquisition of FATHOM brings together two of the leading additive manufacturing firms in North America,” said Ryan Martin, chief executive officer of MCT. “Both companies offer differentiated engineering expertise, exceptional customer service and a long-tenured track record of successfully partnering with leading companies across myriad end markets to provide the best in modern manufacturing, from prototype to production.”

According to CORE, the combination of MCT and FATHOM creates one of the largest global independent additive manufacturing companies with over 80 3D printing machines, wide capabilities in additive technologies, and over 150,000 square feet of manufacturing capacity across three facilities.

“The acquisition of FATHOM aligns well with our previously stated intention to build a leading Industry 4.0 additive manufacturing company,” said Matthew Puglisi, a partner at CORE. “From customer bases to technical expertise and additive manufacturing capabilities, MCT and FATHOM are highly synergistic, and we’re looking forward to further building out the platform through additional complementary acquisitions and continued organic growth.”

CORE makes control investments in companies that have revenues of up to $200 million, EBITDA of up to $20 million, and enterprise values up to $150 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors. In February 2019, the firm held a final close of CORE Industrial Partners Fund I LP with total commitments of $230 million. The new fund was significantly oversubscribed with demand in excess of the initial target of $200 million and initial hard cap of $225 million. CORE was founded in 2017 and is headquartered in Chicago (www.coreipfund.com).

Stifel Global Technology Group was the financial advisor to FATHOM on this transaction. Winston & Strawn provided legal services to CORE and MCT.

© 2019 Private Equity Professional | September 26, 2019

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