Forest Hill Partners has sold Micromatic to MITAR Private Capital, an Indianapolis-based private equity firm.
Micromatic specializes in the development, manufacturing, and distribution of rotary vane actuators, waste management equipment, and automation assembly equipment and systems. Rotary vane actuators, sold marketed under the ROTAC brand, convert hydraulic or pneumatic pressure into high-torque rotational motion.
Micromatic’s actuators are employed in applications such as material transfer, dumping, and positioning and feeding for conveyors. In the waste management sector, Micromatic’s products are utilized with garbage, trash, and recycling vehicles to lift and tip containers into collection vehicles or processing units.
The company is also known for its equipment and systems under the Micro-Precision brand, which are used in automated measurement and assembly processes. Micromatic’s automation capabilities include machine design, mechanical design, electrical design, and control software development.
Founded in 1929, Micromatic operates from its headquarters in Berne, Indiana, located south of Fort Wayne, with 100,000 square feet of manufacturing space.
Micromatic was acquired by Forest Hill Partners (FHP) from Textron in 2005. During FHP’s 19-year ownership, the firm nearly tripled Micromatic’s revenues and earnings. FHP invested in and developed the company’s sales and marketing strategies, expanded its executive management team, and enhanced operational efficiencies.
“FHP’s investment philosophy is rooted in a commitment to acquiring at a fair value, operating efficiently, focusing on profitable, long-term, top-line growth, and professionalizing organizations to set them up for growth while generating substantial returns for our investors,” said John Carretta, a co-founding partner of Forest Hill Partners. “Through close collaboration with the Micromatic management team, we accelerated revenue growth, diversified revenue streams, and executed numerous strategic initiatives. Micromatic was FHP’s inaugural investment, and we are extremely proud of how the team worked together to achieve our investment goals, including delivering a remarkable return for our investors.”
Forest Hill Partners invests in U.S.-based lower middle-market businesses with revenues between $5 million and $25 million. The firm focuses on sectors such as niche industrial, value-added manufacturing, and automotive. Founded in 2002 by John Carretta and Michael Sullivan, FHP has offices near Chicago in Park Ridge, Illinois, and near Detroit in Novi, Michigan.
MITAR Private Capital invests in North American companies with EBITDA between $4 million and $10 million, making both majority and minority investments. The firm’s sectors of interest include manufacturing, aerospace, healthcare products, building materials, distribution, and niche financial services. Indianapolis-headquartered MITAR was founded in 2021 by Managing Partner Michael Rosen and Managing Director Erin Sikorski.
EO Advisors acted as the financial advisor to FHP on this transaction.
© 2024 Private Equity Professional | September 20, 2024
