CORE Industrial Partners has acquired GEM Manufacturing, a maker of metal components and mechanical assemblies.
GEM provides deep drawn metal components and mechanical assemblies used in the electric vehicle, mining, aerospace and defense, and industrials sector. The company’s metal capabilities include aluminum, copper, brass, stainless and carbon steel, Inconel, and Monel.
In deep drawing, a flat sheet of metal is formed into a three-dimensional shape by being drawn into a die with a punch. This process is commonly used to create parts that have a cylindrical or box-like shape, such as cans, cups, and containers. The advantages of deep drawn metal components include high strength and durability, dimensional accuracy, and the ability to produce complex shapes with a single operation.
GEM’s prototyping through high-volume production capabilities includes vertical transfer and progressive die press stamping, CNC and wire electrical discharge machining, and ancillary services such as finishing and printing. GEM, led by President Robert Caulfield, was founded in 1950 and is headquartered near Hartford in Waterbury, Connecticut, with 100,000 sq. ft. of combined manufacturing capacity at its Connecticut and Vietnam facilities.
“Our acquisition of GEM serves as the latest example of our focus on partnering with founder, family, and entrepreneur-owned businesses in proactively identified thematic verticals with attractive investment dynamics,” said John May, the managing partner of CORE. “We believe we can leverage our deep precision manufacturing experience to help expedite the company’s next stage of growth.”
“Since our founding nearly 75 years ago, GEM has prioritized our core value of collaboration, both internally with our talented staff and externally with our valued customers,” said Mr. Caulfield. “My partners, Mark Caulfield and Chris Gemino, and I have been working to find a partner that both understands and embraces our emphasis on collaboration. We believe CORE is an ideal fit, and we’re looking forward to working with CORE to further expand our capabilities and reach.”
“GEM’s broad manufacturing capabilities, extensive capacity, international reach, and collaborative, customer-oriented approach collectively form a compelling foundation as a new platform investment,” said Matthew Puglisi, a partner at CORE. “We’re eager to work with the GEM team to expand its value proposition and market reach through strategic initiatives and complementary acquisitions.”
Post-closing, Rock Lambert, a CORE operating partner, will become the chairman of the GEM board of directors.
Chicago-based CORE makes control equity investments of up to $100 million in North America-based companies with revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.
The acquisition of GEM is the fifth platform investment for Core’s $465 million second fund, which closed in February 2021.
© 2023 Private Equity Professional | February 16, 2023
