ARCH Global Precision, a portfolio company of Strength Capital Partners, has acquired Smiths Machine, a manufacturer of machined components used in aerospace, defense, energy, and locomotive applications.
Arch Global Precision is a manufacturer of machined components and cutting tools. The company’s products are sold to customers in the automotive, industrial, healthcare and aerospace end markets. The company has approximately 480 employees and had 2014 revenues of $89 million, up from $48 million in 2012. Arch projects revenue of $124 million this year. The company is headquartered in the Detroit suburb of Livonia, MI (www.archglobalprecision.com).
Strength Capital formed Arch Global Precision in December 2011 to acquire Hi-Vol Products, KEO Cutters and Richards Micro-Tool, all from TriMas Corp. in a $39 million asset purchase. The purchase of Smiths is the 13th add-on acquisition completed by Strength Capital for the Arch platform. Since its formation in late 2011, Arch Global Precision has grown from $8.8 million of EBITDA to $26.4 million through organic growth and strategic acquisitions.
The owner of Smiths Machine, Tim Smith, will remain active as the Vice President of Sales and Operations for Smiths Machine. Smiths Machine is headquartered southwest of Birmingham in Cottondale, AL (www.smithsmachine.com).
“We are very pleased to announce the acquisition of Smiths Machine. This acquisition continues the end market diversification strategy that we have been pursuing for our Precision Components segment, significantly expands our five-axis milling capabilities and establishes our initial manufacturing footprint in the Southeastern region of the country,” said Eli Crotzer, ARCH Global Precision President and Chief Executive Officer.
Strength Capital Partners invests in companies that have from $4 million to $20 million of EBITDA and are based in the Midwest and Central United States. Sectors of interest include manufacturing, distribution, industrial, business and financial services, infrastructure, and consumer products. The firm is based near Detroit in Birmingham, MI (www.strengthcapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 9-11-15
