Littlejohn and Resilience Combine Metal Benders

Maysteel Industries, a portfolio company of Littlejohn Capital, and Porter’s Group, a portfolio company of Resilience Capital Partners, have merged. The combined companies will operate under the Maysteel brand name with both Littlejohn and Resilience Capital maintaining equity interests in the company.

Maysteel specializes in designing, engineering and manufacturing custom OEM sheet metal enclosures, electrical cabinets and metal fabricated assemblies. The company’s products are used in the alternative energy, kiosk, gaming, security, medical, utility, industrial drive and automation, and self-serve/vending machine industries.

Maysteel was founded in 1936 and has a 240,000 square-foot manufacturing facility and headquarters in Allenton, Wisconsin (northwest of Milwaukee); a 50,000 square-foot manufacturing facility in La Mirada, California; and a 96,000 square-foot manufacturing facility in Monterrey, Mexico.  Littlejohn acquired Maysteel in April 2017 from Revolution Capital Group.

Porter’s Group is a provider of metal fabrication services to companies operating in the security, military, mining, heavy equipment and trucking industries. The company considers itself to be the largest metal fabricator of ATMs in North America. Porter’s, founded in 1964, is headquartered in Bessemer City, North Carolina and has manufacturing facilities in Lynchburg, Virginia; Sumter, South Carolina; and Garland, Texas. Guy Roberts, the CEO of Porter’s Group, now serves as the chief operating officer of Maysteel. Resilience Capital acquired Porter’s in August 2015.

With the merger completed, the combined company has over 1,000 employees with six manufacturing locations covering the US and Mexico. “This merger creates a dynamic company and a much stronger competitor that responds to the needs of our customers and markets we serve,” said Kevin Matkin, CEO of Maysteel who now serves as the CEO of the newly-combined company. “With greater scale, improved market leadership, increased engineering expertise, complementary strengths and geographic reach we have a broader product base to offer our customers from locations where customers need us.”

“As a result of the hard work of Kevin and his team, Maysteel has achieved many milestones, including completing an important acquisition that positioned Maysteel with a significant presence in the growing data center market,” said Angus Littlejohn Jr., founder and chairman of Littlejohn Capital. In December 2017, Maysteel acquired DAMAC Products, a La Mirada, California-based manufacturer of data center equipment including server cabinets, wallmount racks, seismic and thermal management products, power distribution equipment and cable runway systems.

Littlejohn Capital invests from $5 million to $15 million of equity in middle-market companies that have EBITDAs from $2 million to $12.5 million and are valued from $20 million to $75 million. Sectors of interest include manufacturing, fabrication, processing, logistics, materials, and services. Littlejohn Capital, headquartered in Savannah, Georgia, is the family office of Angus Littlejohn Jr., co-founder of Littlejohn & Co., where he currently serves as chairman.

“We look forward to becoming partners with the teams at Littlejohn Capital and Maysteel,” said Bassem Mansour, co-chief executive officer of Resilience Capital. “Both bring tremendous resources and experiences to the combined companies. We are like-minded in our approach and we are confident that the future is bright for Maysteel.”

Resilience Capital Partners invests from $10 million to $40 million in middle-market companies with $25 million to $250 million in revenues and EBITDA typically under $20 million. Sectors of interest include industrial manufacturing, distribution, business services, aviation & aerospace, minerals & mining, consumer goods, transportation logistics, building products, metals, and capital equipment. The firm was founded in 2001 and is based in Cleveland.

© 2020 Private Equity Professional | January 6, 2020

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