Aterian Adds Another Medical Components Maker

Vander-Bend Manufacturing, a portfolio company of Aterian Investment Partners, has acquired Swiss Precision Machining (SPM).

SPM is a manufacturer of consumable instrument components that are used in robotic surgery and other high technology end markets.

The company’s capabilities and services include tight tolerance micro components, prototyping, engineering, and assembly. SPM was founded in 1979 by members of the Hauper family and it operates an 82,000 sq. ft. facility near Chicago in Wheeling, Illinois.

Vander-Bend is a prototyper, developer, manufacturer, and assembler of large-format metal products used primarily in the medical technology sector. With the buy of SPM, Vander-Bend now operates six facilities with more than 400,000 sq. ft. of manufacturing space across the West Coast and Midwest and employs more than 900 people. The company, led by CEO Greg Biggs, was founded in 1979 and is headquartered in San Jose, California.

SPM is the third medical technology add-on acquisition completed by Vander-Bend since being acquired by Aterian in May 2018. The two earlier buys were J.L. Haley Enterprises, a California-based fabricator of metal parts used primarily in medical device applications (January 2019); and TMK, a California-based provider of prototyping and precision machining services for small format medical components (May 2018).

“We are excited for Vander-Bend to complete this acquisition,” said Brandon Bethea, a co-founder and partner at Aterian. “Since making our investment in 2018, our objective has been to facilitate Vander-Bend’s transformation into a differentiated partner and supplier to industry-leading medical and other high technology customers. The combination with SPM is a key step along that strategic journey and creates a unique platform in the med-tech and datacenter infrastructure end markets.”

“This transaction exemplifies Aterian’s track record of investing in attractive family-founded businesses,” said Daniel Phan, a principal at Aterian. “We look forward to working with the combined company on its operational and growth initiatives, as well as continuing to pursue further strategic acquisitions.”

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.

© 2020 Private Equity Professional | December 10, 2020

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