Aterian Adds to Pioneer Metal

Pioneer Metal Finishing, a portfolio company of Aterian Investment Partners since August 2018, has acquired Pilkington Metal Finishing.

Pioneer Metal is a provider of outsourced anodizing, plating, hardcoat, adhesive, electroless nickel, and other surface treating services. The company has approximately 3,500 customers that are active in numerous end markets including, among others, general industrial, automotive, aerospace, and food & beverage.

Pioneer Metal operates seven facilities across the United States in Michigan (3), Minnesota, Wisconsin, Oregon, Indiana, and one facility in El Marques, Mexico. The company, led by CEO Kevin Stevick, was founded in 1945 and is headquartered in Green Bay, Wisconsin.

Like Pioneer, Pilkington is a provider of metal finishing services – including anodizing, powder coating, wet coating, and non-destructive testing – to companies operating in the aerospace & defense, medical devices, general industrial, and consumer goods sectors. Pilkington, founded in 1981 by Van Pilkington – he was joined at the company by his brother David Pilkington in 1990 – has more than 220 employees and operates from a 100,000 sq. ft. manufacturing and headquarters facility in Salt Lake City, Utah.

“We feel right at home with the Pioneer team, who really understand the metal finishing business,” said Van and David Pilkington in a released statement. “We are highly complementary of the folks at Pioneer and Aterian, who have been welcoming, transparent and straightforward throughout this entire process.  Working together we’re fully enabled to meet the growing demand for metal finishing services here in the West.”

The acquisition of Pilkington by Pioneer represents a continuation of Pioneer’s strategy of acquiring metal finishing businesses across North America and provides the company with additional penetration into the aerospace & defense and medical end markets. “It is great to be partnering with the Pilkington family. They have a great business that builds upon our strategy to acquire metal finishing businesses across North America,” said Daniel Krasnow, a vice president at Aterian.

Aterian invests up to $50 million in small-to-middle market businesses with $25 million to $500 million in revenues that are underperforming, turnarounds or otherwise unique situations. Aterian held a final closing of Aterian Investment Partners III LP with $350 million of committed capital in July 2018. Aterian’s earlier fund closed in December 2013 with $257 million of capital commitments. The firm was founded in 2009 by Brandon Bethea, Michael Fieldstone and Christopher Thomas and is based in New York City.

© 2020 Private Equity Professional | January 29, 2020

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