Turnspire Capital Partners has sold UPG Company to The Partner Companies. Turnspire acquired UPG from MedPlast, a portfolio company of Baird Capital, in May 2016.
UPG Company (United Plastics Group) is a manufacturer of assembled components and finished products that are used in the data center, healthcare, energy and other industrial end-markets. UPG’s manufacturing capabilities include micro-molding, thin wall molding, two-shot injection molding, and vertical injection molding; and its service capabilities include product design, engineering, rapid prototyping, assembly, and supply chain management.
“Turnspire was a truly engaged and value-added owner and partner for the UPG team and me over the past six years,” said Mr. Murphy.
Since carving out UPG from MedPlast in May 2016, Turnspire and the senior management team of UPG have actively transformed the company from a non-core subsidiary of MedPlast to a stand-alone and independent company. Over the more than six-year ownership term, UPG launched new products, invested in new engineering and manufacturing capabilities, and added new market-leading customers. Today, the company’s customer roster includes IBM, Hewlett-Packard, Honeywell, Medtronic, and Bosch.
Under Turnspire’s ownership, UPG dramatically improved its profit margins and increased EBITDA significantly. In July 2021, Turnspire recapitalized UPG to repay prior debt, add capital for ongoing investments in product expansion, and fund a cash distribution to shareholders. According to a source familiar, the sale of UPG to TPC resulted in a nearly 9x return on Turnspire’s invested capital.
“UPG was a fantastic investment for Turnspire and a great example of our ability to complete complex transactions, dramatically improve businesses through strategic and operational initiatives, and ultimately realize value that others had not recognized,” said Ilya Koffman, the managing partner of Turnspire. “We thank and commend Maurice and the UPG management team for their hard work, dedication and incredible success. We wish the talented and dedicated employees of UPG further success under TPC ownership.”
“Turnspire was a truly engaged and value-added owner and partner for the UPG team and me over the past six years,” said Mr. Murphy. “This very successful outcome is a result of our excellent accomplishments in transforming and growing the business. UPG’s future is bright, and I am excited to continue leading this great business.”
The Partner Companies (TPC) is a group of manufacturers that specialize in critical parts and assemblies used by OEMs in the medical, defense, aerospace, and electronic sectors. TPS’ material capabilities include common, exotic, and precious metals; ceramics; metalized sapphire; engineered plastics; silicon; and germanium.
TPC was founded by its co-chairmen Dan Brumlik and Scott Bekemeyer in 2020 and today consists of Illinois-based Fotofab; California-based E-Fab; California-based Elcon Precision; Montana-based Lattice Materials; California-based L&T Precision; Michigan-based Microphoto; California-based Optiforms; Massachusetts-based Photofabrication Engineering; and California-based Pinnacle Precision.
“Adding UPG’s team and capabilities under the TPC umbrella was a natural combination,” said Mr. Brumlik. “We operate from essentially the same playbook – serving our customers as partners with highly-engineered, value-added solutions that keep us all at the forefront of the industries we serve.”
New York City-based Turnspire invests in companies with revenues between $50 million and $400 million, positive or negative EBITDA, and valuations up to $125 million. The firm specializes in corporate carve-outs, family ownership transitions, companies in financial or operational distress, complex and multi-constituent transactions, and out-of-favor or misunderstood industries.
PMCF (P&M Corporate Finance) was the financial advisor to TPC on this transaction, and Duane Morris represented TPC as lead counsel.
© 2022 Private Equity Professional | October 14, 2022
