Industrial Growth Partners has acquired Alpha Metalcraft Group in partnership with the company’s senior management team.
Alpha Metalcraft Group (AMG) manufactures formed metal components with tight tolerances and complex shapes that are used in commercial aerospace, rotorcraft, military aircraft, munitions, and space applications, as well as in the medical and industrial sectors.
AMG’s customers include original equipment manufacturers (OEMs) and Tier 1 and 2 suppliers in the aerospace, defense, and medical industries. The company is headquartered in Danbury, Connecticut, and is led by CEO Alec Searle.
AMG operates through three business units, with two based in Connecticut and one in Commack, New York. In October 2018, AMG acquired Gasser & Sons, a New York-based manufacturer and assembler of x-ray tube housings and components for the medical, industrial, and defense sectors. Gasser also produces deep-drawn metal assemblies and components used in electro-optical systems and aerospace applications. In December 2019, AMG acquired GAR Electroforming, a Connecticut-based provider of electroformed components for the aerospace and defense industries. GAR’s products include copper, nickel, and nickel/cobalt components used in rotorcraft and aerospace applications, such as abrasion strips and protective seals. Most recently, in December 2022, AMG acquired Connecticut Coining, a Connecticut-based manufacturer of deep-drawn metal parts for the medical, aerospace, defense, and power tube industries. Prior to the acquisition, Connecticut Coining was owned by Ohio-based MavenHill Capital.
“IGP’s track record of building and scaling A&D-focused, specialty metal forming companies made them a perfect partner for AMG,” said Mr. Searle. “Their growth-oriented philosophy, deep A&D experience, and commitment to supporting management teams stood out as a true differentiator and made IGP our partner of choice.”
Industrial Growth Partners provides equity capital to lower-middle market niche manufacturing and industrial services companies with revenues of up to $250 million. The firm invests equity in a range of transaction types involving a change of ownership, such as management buyouts, leveraged buyouts, corporate divestitures, recapitalizations, and management buy-ins. IGP was founded in 1997 and is based in San Francisco.
TPG Twin Brook was the administrative agent on the debt financing to support IGP’s buy of AMG. Chicago-based TPG Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million to $150 million. TPG Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
The purchase of AMG closed in late July 2024. The company is IGP’s fifth platform investment for its sixth fund, which closed in August 2022 with $1.2 billion in capital.
© 2024 Private Equity Professional | September 20, 2024
