Rock Gate Partners has announced the acquisition of H3 Manufacturing Group (H3) in partnership with CEO Steve Hillard, other members of senior management, and Ironwood Capital.
H3 was formed by Capital for Business and Aldine Capital Partners in June 2019 to facilitate the merger of privately-held HL Precision Manufacturing with Hi-Grade Welding & Manufacturing, then a portfolio company of Capital for Business and Midstates Capital.
H3 provides fabrication and machining services for complex, high-precision parts and assemblies used in power generation, healthcare, electrical power distribution, aerospace and defense, and life sciences applications.
The company’s machining services include laser cutting, sheet metal fabrication, complex welding, assembly, surface finishing, painting, and powder coating.
H3 operates three facilities in Illinois, with a combined 165,000 square feet. Its Champaign location is a 50,000-square-foot facility that houses administrative offices, CNC machining, assembly, and welding capabilities. The Fisher facility spans 37,000 square feet and specializes in sheet metal fabrication, assembly, welding, wet painting, powder coating, and wire EDM capabilities. The Schaumburg facility, covering 78,000 square feet, focuses on sheet metal fabrication, assembly, robotic welding, and CNC machining capabilities.
“We are incredibly excited to partner with H3’s exceptional management and employees in continuation of their highly successful journey to become a leading player in precision machining and metal fabrication, while serving a world-class roster of customers in highly desirable and growing end-markets,” said Carl Stickel, a managing director at Rock Gate.
Rock Gate invests between $3 million and $50 million in equity in lower-middle-market companies with revenues of $10 million to $125 million and EBITDA of $3 million to $12 million. Its sectors of interest include industrial products, manufacturing, business services, value-added distribution, B2B e-commerce, infrastructure products and services, as well as organic and specialty food, beverage, and agricultural products. Rock Gate was founded in 2006 and is headquartered in Chicago.
Ironwood Capital makes non-control subordinated debt, preferred, and common equity investments of $10 million to $50 million in middle-market companies with revenues of $20 million to $250 million and EBITDA of $4 million to $25 million. The firm is headquartered in Avon, Connecticut.
Hennepin Partners was the financial advisor to Aldine Capital and Capital For Business on the sale of H3 to Rock Gate Partners and Ironwood Capital. This transaction closed in June 2024 but was just announced by Rock Gate and Ironwood.
© 2025 Private Equity Professional | March 7, 2025
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