GEM Manufacturing, a portfolio company of CORE Industrial Partners, has acquired sister companies Coining Manufacturing and Precision Machine Products. The two companies provide specialty stamping and machining services.
GEM provides deep drawn metal components and mechanical assemblies used in the electric vehicle, mining, aerospace and defense, and industrials sector. The company’s metal capabilities include aluminum, copper, brass, stainless and carbon steel, Inconel, and Monel.
In deep drawing, a flat sheet of metal is formed into a three-dimensional shape by being drawn into a die with a punch. The advantages of deep drawn metal components include high strength and durability, dimensional accuracy, and the ability to produce complex shapes with a single operation.
GEM’s prototyping through high-volume production capabilities includes vertical transfer and progressive die press stamping, CNC and wire electrical discharge machining, and ancillary services such as finishing and printing. The company, led by President Robert Caulfield, was founded in 1950 and is headquartered near Hartford in Waterbury, Connecticut, with 100,000 sq. ft. of combined manufacturing capacity at its Connecticut and Vietnam facilities.
Coining’s and PMP’s production capabilities include progressive die stamping, screw machining, CNC machining and wire EDM manufacturing technologies; and its material capabilities includes common metals such as aluminum, copper and stainless steel, as well as a variety of difficult metals, including titanium, Kovar, Inconel, Alumel, and Chromel.
Many of the company’s customers are active in the aerospace, defense, medical, electronics and semiconductor sectors and manufacture microelectronic and sonic packages, sensors, implantable devices, connectors, terminals, solder cups, thermocouple pins and seal headers. Coining and PMP are owned by Ed Farley and John Lipari, Sr., and are headquartered near New York City in Clifton, New Jersey.
“From manufacturing capabilities and geographic location to customer bases and end market focus, Coining and PMP are highly complementary and strategic fits with GEM,” said Rock Lambert, an operating partner at CORE. “We’re excited to augment both the depth and breadth of the platform’s value proposition in support of our valued customers.”
“Above all else, our talented and highly experienced employees have been the key to our consistent growth over the last decade,” said Mr. Lipari. “We’re pleased to partner with the GEM and CORE teams to provide additional resources and strategic guidance to support the company’s next growth phase.”
“Coining and PMP offer differentiated, highly technical manufacturing capabilities and a long track record of working with customers in demanding, high-growth end markets to produce precision components for mission-critical applications,” said Matthew Puglisi, a partner at CORE. “We believe these acquisitions are compelling additions to the GEM platform, and we look forward to pursuing additional inorganic growth opportunities.”
Monroe Capital (NASDAQ: MRCC) was the sole lead arranger and administrative agent on a senior credit facility that backed the acquisition by GEM of Coining and PMP. Monroe provides senior and junior debt financing to middle-market businesses, special situation borrowers, and both private equity and independent sponsors. Investment types include direct lending, asset-based lending, specialty finance, opportunistic and structured credit, and equity co-investments. The firm, founded in 2004, is headquartered in Chicago with 10 offices throughout the United States and Asia.
Chicago-based CORE makes control equity investments of up to $100 million in North America-based companies with 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.
CORE acquired GEM in February 2023 through its $465 million second fund which closed in February 2021.
© 2023 Private Equity Professional | August 17, 2023
