Seaway Plastics Engineering, a portfolio company of Intermediate Capital Group (ICG), has acquired MME Group.
MME is a provider of contract manufacturing services including injection molding, engineering, tooling, and assembly for FDA-regulated medical and other regulated engineered products. Customers of MME include Motorola, 3M, Tesla Motors, Stryker, GM, Dell, Medtronic, Jabil, Benchmark Electronics and Plexus.
MME has nearly 100 employees and operates two facilities in St. Paul, Minnesota, with a combined 110,000 sq. ft. including a 30,000 sq. ft. class 8 clean room. The company was founded in 1974 as Minnesota Mold & Engineering and today is led by CEO and owner Bob Archambault.
“I am proud of the meaningful growth that MME has achieved since I took ownership of the business and am confident that partnering with Seaway is the right next step for our business and employees,” said Mr. Archambault. “Seaway and MME have highly complementary capabilities, and we will leverage our combined skillsets to fully service our growing customer base.”
Seaway Plastics specializes in complex components and assemblies used in the medical, healthcare, aerospace, defense, and precision industrial sectors with the majority of revenue generated by the medical device and healthcare segments. The company’s capabilities include prototyping, low-to-mid volume production, mold making, and surface finishing.
Seaway was founded in 1984 and has 160 employees and operates three facilities. Two of the company’s facilities are located near Tampa in Port Richey (headquarters) and Brooksville, Florida; and the third facility, operating as Wright Engineered Plastics, is located in Santa Rosa, California.
With the acquisition of MME, the combined company now has 450 employees and 240,000 sq. ft. of manufacturing space across five facilities in Florida, California, and Minnesota.
“We are thrilled to have MME and its exceptional team join our business,” said Tom Orr, the president and CEO of Seaway. “The strategic combination of MME with Seaway enhances the strengths of both businesses and enables us to expand sales coverage and production capacity. Together we are better equipped to service the growing needs of device manufacturers.”
“When we acquired Seaway, a crucial part of our investment thesis was to seek out strategic acquisitions, particularly those focused on the large and growing medical device end market. We are thrilled to execute on this strategy, as the addition of MME leaves Tom and the Seaway team well-positioned to grow both organically and through additional acquisitions,” said Kevin Gregory, Healthcare Sector Lead, North American Direct Private Equity at ICG.
ICG, through its North American Direct Private Equity group, acquired Seaway from Tonka Bay Equity Partners in June 2022. Publicly traded and London-headquartered ICG invests across four asset classes – structured and private equity, private debt, real assets, and credit – and has more than $71 billion of assets under management. ICG launched its North American private equity strategy in September 2019.
“Over its nearly 50-year history, MME has built deep relationships with a high-quality customer base and has demonstrated a strong track record of organic growth,” said Uzair Dossani, a managing director at ICG. “We were impressed by how well MME’s business complements Seaway’s, and that synergy will help Tom and the management team smoothly integrate MME.”
Alvarez & Marsal provided accounting and tax due diligence services to both ICG and Seaway, and Kirkland & Ellis provided legal services.
© 2022 Private Equity Professional | October 28, 2022
