LLCP’s Newest Fund Closes First Buy
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LLCP’s Newest Fund Closes First Buy

In-Place Machining becomes LLCP's first portfolio company for its just closed $1.38 billion lower middle market fund

IPM’s maintenance, repair and life-cycle services include field machining, welding, optical and laser alignment, measurement, diamond wire-cutting, and robotic demolition

SOURCE: In-Place Machining Company

Levine Leichtman Capital Partners has acquired In-Place Machining Company (IPM) from Platte River Equity.

IPM’s maintenance, repair and life-cycle services include field machining, welding, optical and laser alignment, measurement, diamond wire-cutting, and robotic demolition. IPM’s customers are active in a wide range of sectors including industrial, manufacturing, naval and marine, nuclear and hydro, metals, and aerospace.

Since its founding in 1976, IPM has provided its machining services all over the world, from the United States to Saudi Arabia and to above the Arctic Circle, with specific projects completed on-site at the Hoover Dam; for Hydro Tasmania; on The San Francisco Bay Bridge; and at Milwaukee’s Miller Park.

IPM, led by CEO Dean Flint, was founded in 1976 and is headquartered in Milwaukee, Wisconsin. The company has more than 125 employees and has four additional facilities in Virginia, Ohio, Washington, and Ontario. At these five facilities, IPM maintains a fleet of heavy-duty, specialized, portable and modular machine tools.

“My team and I are thrilled to partner with LLCP to enhance IPM’s market-leading position,” said Mr. Flint. “LLCP’s deep experience in both business services and highly engineered products makes them a unique partner as we work to continue to support our customers globally with mission-critical services.”

Platte River acquired IPM in November 2016 through its third fund. Under its ownership, IPM closed two add-on acquisitions with the buys of Ohio-based Cutting Edge Services in January 2019 and Wisconsin-based Exact Metrology in July 2021.

“Platte River is proud to have supported IPM’s remarkable transformation over the past several years,” said Mark Brown, a managing director at Platte River. “Ongoing investments in leadership and processes accelerated organic growth and positioned the company to complete two highly strategic add-on acquisitions. IPM is truly a unique company with unique people. We look forward to watching their continued success well into the future.”

“We are excited to partner with Dean and the management team that has led IPM’s impressive growth over the past several years,” said Matthew Rich, a senior managing director at LLCP. “The company has demonstrated unparalleled expertise in the on-site machining industry, expanding its reach into new geographies and end markets, while broadening its service offerings. We look forward to capitalizing on IPM’s attractive growth opportunities, including organic initiatives and potential acquisitions.”

The acquisition of IPM was made through LLCP Lower Middle Market Fund III LP (Fund III) and is the fund’s first platform investment. Fund III held an oversubscribed and hard cap close at $1.38 billion earlier this month.

Fund III invests in United States-based lower middle market companies with less than $50 million of revenues that are active in consumer and branded products, franchises, business services, healthcare, education, engineered products and light manufacturing.

Since its founding in 1984 by Arthur Levine and Lauren Leichtman, LLCP has managed approximately $12.7 billion of institutional capital across 15 investment funds and has invested in over 90 portfolio companies. LLCP currently has $9 billion of assets under management with offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm and The Hague.

Denver-based Platte River makes equity investments of $25 million to $100 million in lower middle-market companies with annual revenues from $20 million to $250 million and EBITDA ranging from $7 million to $30 million. Sectors of interest include aerospace and transportation; energy products and services; industrial products and services; and agriculture and chemicals.

Houlihan Lokey was the financial advisor to IPM and Platte River on this transaction.

© 2021 Private Equity Professional | September 24, 2021

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