Arsenal Capital Partners has acquired Eckhart Holdings, a provider of automation products and services, from LFM Capital.
Eckhart is a designer and manufacturer of autonomous guided vehicles; industrial robotic systems; manufacturing tool development and production; and ergonomic general assembly tooling products. The company’s customers are active in the e-commerce, engineered products, electric vehicles, transportation, and consumer products sectors and include Honda, Toyota, Nestle, CertainTeed, General Electric, FedEx, Procter & Gamble, Kroger, and Allison Transmission.
Eckhart is led by CEO Andy Storm and is headquartered near Detroit in Warren, Michigan.
LFM Capital acquired Eckhart in June 2015. During its ownership term, Eckhart opened a new advanced design and manufacturing center and integrated six add-on acquisitions including Indiana-based Gasper Engineering (2019), Minnesota-based PRI Robotics & Automation (2019), Iowa-based Eagle Engineering (2018), Michigan-based LogicPlus (2018), Michigan-based Polker Design Services (2017), and Michigan-based Auto Craft (2016).
“We are extremely pleased with the growth and success of Eckhart during the past six and a half years of our ownership,” said Dan Shockley, a managing director at LFM. “We commend the entire Eckhart team for their significant operational accomplishments while also managing the integration of six notable add-on acquisitions. We are confident that Eckhart will continue to thrive in its next chapter.”
“In 2015, LFM Capital made a commitment to invest in our employees and help Eckhart build a control, robotic, and automation-based business. LFM’s industry expertise and operational focus were instrumental in helping the Eckhart team grow manufacturing in America, which is an achievement that makes every employee of our company proud,” said Mr. Storm. “We look forward to working with Arsenal to continue this momentum and further diversify our business in North America and beyond.”
“We are thrilled to work closely with Eckhart’s senior leadership team to support a world-class automation platform in its next phase of growth,” said Aaron Wolfe, an investment partner at Arsenal. “Eckhart’s solutions are critical to driving higher productivity, efficiency and precision, which is increasingly more valuable as customers compete on a global scale. Arsenal plans to invest a significant amount of incremental capital to accelerate growth, augment the solution set, and further penetrate attractive end markets.”
“As systems increase in complexity, the design and integration of automation solutions becomes essential to efficient operations,” said Sal Gagliardo, an operating partner at Arsenal. “We see significant opportunity ahead to leverage our collective industry expertise and deep financial resources to make Eckhart a clear innovation leader. As a firm, Arsenal will continue to invest in automation megatrends.”
New York-headquartered Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million of enterprise value. Since its founding in 2000, Arsenal has raised total capital of $7 billion, closed more than 250 platform and add-on acquisitions, and exited more than 30 portfolio companies.
MidCap Financial was the Administrative Agent, Sole Arranger, and Sole Bookrunner for a senior secured credit facility that supported Arsenal’s buy of Eckhart. Managing Director Anisha Malhotra led MidCap’s transaction team. MidCap Financial, in alliance with its investment manager Apollo Capital Management, is a middle-market focused finance firm that provides debt instruments of $10 million to $750 million to companies across all industries.
William Blair & Company was the financial advisor to Eckhart and LFM Capital on this transaction and Harris Williams advised Arsenal.
© 2022 Private Equity Professional | January 19, 2022
