Staple Street Capital has acquired Precise Metal Products in partnership with Thompson Capital Partners.
Precise Metal Products (PMP) is a manufacturer of complex metal assemblies used in aerospace and defense applications including aircraft engines, auxiliary power units and environmental control systems.The company’s production capabilities include hydroforming, roll forming, CNC machining, laser cutting, wire EDM (electrical discharge machining), heat treating, chemical film application, and assembly. Customers of PMP include Pratt & Whitney, Honeywell, UTC Aerospace, General Dynamics, and Orbital ATK.
PMP has 175 employees and is led by CEO Steve Bangerter. “We’re excited to work with our new investment partners,” said Mr. Bangerter. “They have a differentiated track record of helping companies like ours accelerate continuous improvement initiatives to support long-term growth.” PMP was founded in 1957 and is headquartered in Phoenix, AZ (www.precise-metals.com).
Staple Street makes control investments of $20 million to $75 million in companies with revenues of $50 million to $500 million. The firm is currently investing out of Staple Street Capital II LP which closed at its hard cap of $265 million in April 2015. Industries of interest include automotive; business services; chemicals; communications, media, and technology; consumer and retail; distribution and logistics; energy; financial services; healthcare; industrial and manufacturing.
Staple Street was co-founded by its managing directors Stephen Owens and Hootan Yaghoobzadeh and is based in New York (www.staplestreetcapital.com). “We are impressed by the company’s senior leadership team and their commitment to quality, customer service and operational excellence. They have successfully positioned Precise as a best-in-class partner for their customers,” said Staple Street in a released statement. “We are eager to build on this reputation and provide the strategic, operational and financial resources to help them capitalize on new growth opportunities.”
“We are excited to partner with Staple Street in acquiring such a premier aerospace manufacturer,” said Mike Thompson, a managing partner of Thompson Capital. “PMP has an excellent management team in place and has realized sales growth in excess of 50% during the past two years after winning and delivering transformational contracts with Pratt & Whitney. Thompson Capital and Staple Street will be focused on enhancing growth and organizational development opportunities as PMP continues to expand its capabilities and workforce.”
Thompson Capital invests in founder or family-owned industrial and manufacturing companies that have revenues between $1 million and $20 million and EBITDA of less than $2 million. The firm was founded in 2013 and is headquartered in Scottsdale, AZ (www.thompsoncapital.partners).
© 2019 Private Equity Professional | September 17, 2019