HCI Equity Partners has sold TSM Corporation, a manufacturer of precision-machined components, to Walor North America, a subsidiary of FerrAl United, which is a portfolio company of Mutares SE & Co.
TSM Corporation manufactures close-tolerance steel and aluminum components and assemblies for the automotive industry, including chassis and suspension components, tow hooks, and engine and powertrain parts used by automotive OEMs and Tier 1 suppliers.
TSM Corporation was founded in 1978 and operates from a 98,000-square-foot facility near Detroit in Auburn Hills, Michigan, and a 67,000-square-foot plant near Monterey in Ramos Arizpe, Mexico. In 2024, the company had approximately $120 million in revenue, adjusted EBITDA of approximately $12 million, and 240 employees.
HCI first invested in TCM in August 2017. “We have had the privilege of working with the TSM management team for the past eight years,” said Dan Dickinson, a co-founder and executive chairman at HCI. “Together we invested in talent, technology and capacity, positioning TSM as a trusted supplier to the world’s leading automotive customers.”
FerrAl United, the buyer of TSM, is a global automotive supplier specializing in iron- and aluminum-based castings, forgings, and machined components for OEMs and Tier 1 suppliers. Mutares formed the business in 2023 through the consolidation of three of its portfolio companies: CIMOS, a Slovenia-based supplier of turbocharger and powertrain components, acquired in October 2023; Walor International, a France-based forger and machiner of steel parts used in automotive and industrial vehicles, acquired in December 2022 (Walor International formed Walor USA to acquire Hirschvogel Incorporated, a Columbus, Ohio-based forging and machining company); and SELZER Group, a Germany-based provider of metal forming and machining services, acquired in July 2023. Together, these three operating units have more than €1 billion in combined revenue and 30 worldwide operating facilities.
HCI Equity invests in lower middle market distributors, manufacturers, and technician-based service providers in fragmented industries. The firm typically invests up to $75 million in equity in companies with revenues from $20 million to $200 million and EBITDA from $3 million to $25 million. The Washington, D.C.-headquartered firm was co-founded in 2003 by its managing partners, Dan Dickinson and Doug McCormick.
Mutares (FSE: MUX) is a Munich-headquartered private equity firm that invests in corporate carve-outs and special situations. Typical target companies have operational improvement potential and revenues from €100 million to €750 million and operate in the automotive and mobility, engineering and technology, goods and services, and retail and food sectors.
“Further to the opening of our office in Chicago, we are proud to announce the acquisition of TSM. We are reinforcing our presence in North America and expanding our capabilities in precision manufacturing and automotive systems make it a compelling addition to the Mutares portfolio,” said Johannes Laumann, the CIO of Mutares.
Mutares was founded in 2008 and has additional offices in Amsterdam, Bad Wiessee, Chicago, Frankfurt, Helsinki, London, Madrid, Milan, Mumbai, Paris, Shanghai, Stockholm, Vienna, and Warsaw.
Donnelly Penman & Partners was the financial advisor to both TSM and HCI.
© 2025 Private Equity Professional | June 20, 2025
