CORE Industrial Partners has acquired CGI Automated Manufacturing, a provider of sheet metal fabrication services.
CGI’s service capabilities include laser cutting, CNC punching and machining, forming, robotic welding, fastener insertion, and assembly. The company specializes in short lead times for mid-to-high volume complex sheet metal production parts, assemblies and weldments in stainless steel, aluminum, galvanized, cold rolled, or hot rolled materials from 24 gauge (1/40 of an inch) to one inch thick.
CGI has a specialization in serving customers in the electrical transmission and distribution sector, and also serves the medical, food, lighting, and industrial sectors. CGI was acquired in 1976 by Richard and Dorothy Gurzynski in 1976, and today is owned and operated by their children, Janice Nieman and Gary Gurzynski. The company operates a 62,500 square foot facility located in the Chicago suburb of Romeoville.
“On behalf of Gary, all CGI employees, and myself, we’re excited to officially begin this next phase of the company’s long history in partnership with CORE,” said Ms. Nieman. “After four decades and two generations of family ownership, we’re confident CORE’s expertise and support will augment CGI’s leading reputation for dedicated customer service and reliable delivery of complex, tight-tolerance sheet metal parts and assemblies.”
“Our investment in CGI aligns well with our continued focus on partnering with founder- and family-owned businesses that embrace powerful Industry 4.0 trends,” said John May, the managing partner of CORE. “CGI’s historical focus on technology and automation combined with quick turnaround times, outstanding customer service and precision manufacturing capabilities make the business an ideal new platform investment.”
Industry 4.0 – commonly referred to as the fourth industrial revolution – refers to the current trend of automation and data exchange in manufacturing technologies. The goal of Industry 4.0 is the creation of “smart factories” that utilize cyber-physical systems, the Internet of things, cloud computing and cognitive computing.
“We’re looking forward to working with the talented CGI management team to build upon the company’s strong foundation with investments to accelerate organic growth through continued automation and digitization,” said Matthew Puglisi, a partner of CORE. “We’ll also work to broaden the company’s geographic reach, manufacturing capabilities and end-market mix through complementary acquisitions.”
Chicago-based CORE makes control investments in companies that have revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.
With the closing of the transaction, TJ Chung, a senior partner at CORE, will now become the chairman of the CGI board of directors. The buy of CGI is CORE’s second investment from its second fund, CORE Industrial Partners Fund II LP, which closed above its hard cap in February 2021 with $465 million of capital.
Chicago-based InterOcean Advisors was the financial advisor to CGI on this transaction.
© 2021 Private Equity Professional | August 18, 2021
