Generation Growth Capital (GGC) has formed American Consolidated Metals as a new platform within the metal manufacturing sector and has announced the acquisitions of Federal Tool & Engineering, BP Metals, and Rockford Specialties.
Federal Tool & Engineering is a contract manufacturer of metal stampings, fabrications, and assemblies used by OEMs in commercial and industrial generators, commercial foodservice equipment, commercial and vehicle lighting and steering, communication equipment, and medical applications.
Product examples include panels and brackets used in the housings surrounding power generation equipment, specialty refrigeration doors and hinges, vehicle steering wheel frames, and housings and components used in medical weighing scales and MRI machines.
Most uses of the company’s products meet critical tolerance or cosmetic surface requirements and are produced from aluminum, brass, carbon steel or stainless steel.
Federal Tool was founded in 1925 as a tool and die shop by members of the Beverung family and was acquired by President David Tomczek and EVP Steven Moyer in 2005. In 2013, the company acquired a new manufacturing and headquarters facility in West Bend, Wisconsin (40 miles north of Milwaukee), and in 2023 was named as a Wisconsin Manufacturer of the Year award in the small business category by the Wisconsin Chamber of Commerce and Manufacturers Association.
“Generation Growth Capital was the perfect buyer for us after running a competitive sale process and speaking with numerous firms. They really understand manufacturing and could see the value in the company that we methodically have built over the past 18 years,” said Mr. Tomczek. “We believe that with GGC’s support and resources, they can accelerate our growth, invest in cutting-edge technology, and deliver even greater value to our customers.”
Like Federal Tool, BP Metals is a contract manufacturer of metal fabrications and assemblies used by OEMs in commercial foodservice equipment, agricultural equipment, and retail fixtures. The company was founded in 2007 by Blake Pendzimas and is headquartered 50 miles north of Minneapolis in Isanti, Minnesota.
Rockford Specialties is a provider of wire and laser-cut component products used by OEMs in the point-of-purchase, food service, consumer products, laboratory and medical supply sectors. The company has been family-owned since its founding in 1979 and today is co-owned by President Lisa Stankey and headquartered 80 miles west of Chicago in Rockford, Illinois.
“We see the vision that GGC has created with American Consolidated. As a testament to that, we are already bidding on projects together and cross selling our combined capabilities. We are confident that the legacy that we and my family have built over the past several decades continues forward,” said Ms. Stankey.
“Bringing Rockford Specialties, Federal Tool & Engineering, and BP Metals under the banner of American Consolidated is an exciting development for us,” said John Reinke, a managing director at GGC. “Each of these companies has a stellar track record of excellence and customer satisfaction. This platform positions us to deliver even more comprehensive solutions to our combined customer base while further strengthening our investment commitment to supporting the U.S. manufacturing sector.”
American Consolidated is led by President Igor Zelenovskiy who was just hired by GGC to lead the platform. Mr. Zelenovskiy has c-suite experience with several Wisconsin-based manufacturers including Tailored Label Products, Fisher Barton, Rexnord, Komatsu and Rockwell Automation.
“I am thrilled to be part of American Consolidated and excited about the opportunities that lie ahead. In an era of ever-changing geopolitical dynamics putting pressure on supply chains, at American Consolidated we are not just expanding manufacturing capacity and capabilities; we’re redefining our approach,” said Mr. Zelenovskiy. “By bringing manufacturing to our customer’s doorstep, we ensure not only uninterrupted product delivery but also offer comprehensive engineering services. This strategic move is about more than meeting demand; it’s about fortifying partnerships, navigating uncertainties, and delivering excellence where it matters most—at the heart of our customers’ operations.”
Generation Growth Capital invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity, but subordinated debt and warrant structures are also considered. The firm was founded in 2007 by Managing Director Cory Nettles and is headquartered in Milwaukee.
© 2023 Private Equity Professional | December 19, 2023
