Blue Point Capital Partners has acquired Mattco Forge, a maker of forged metal products used primarily for aerospace and defense applications.
Mattco’s products are made from nickel, titanium, aluminum, stainless and carbon steel, magnesium and other alloys and include hubs, shafts, gears, disks, bars, blocks, and seamless rolled rings. In addition to serving the aerospace and defense sector, Mattco’s products are also used in the oil and gas, transportation, and power generation industries. Mattco was founded in 1969 by Matt Minguez and is headquartered near Los Angeles in Paramount, California.
The buy of Mattco is the sixth platform investment for Blue Point’s fourth fund, Blue Point Capital Partners IV LP, which closed at its hard cap of $700 million in January 2018.
“Our partnership with Blue Point will enable us to build upon our success to date,” said Rob Lewis, the president of Mattco. “The team is eager to benefit from a new, experienced partner while taking Mattco through its next stage of growth.”
Blue Point has made numerous investments in the aerospace and defense sector, and metals manufacturing space. These investments include Selmet, a manufacturer of titanium investment castings used in aerospace and defense applications. Blue Point acquired Selmet in 2011 and sold it to Consolidated Precision Products (CPP), a portfolio company of Warburg Pincus, in 2018. Blue Point maintains and equity interest in CPP.
“Blue Point sees a significant opportunity to grow the Mattco platform,” said Mark Morris, a partner at Blue Point. “Together with management and our extensive aerospace and defense operating resources, we hope to expand the company’s production capabilities, improve its supply chain management and enhance its business infrastructure, all while maintaining Mattco’s best-in-class track record of customer service and execution.”
Blue Point invests in companies that are active in the manufacturing, distribution and business services sectors and have from $20 million to $300 million in revenue and EBITDA greater than $5 million. The firm has offices in Cleveland, Charlotte, Seattle, and Shanghai.
“Mattco has strategically positioned itself as a key supplier of forged metal products in the aerospace and defense industry. With a focus on innovative engineering, quality, continuous improvement and world-class customer support, Mattco has become the supplier of choice for industry leaders across the globe. Given our experience and resources, it’s a natural fit,” said Charley Geiger, a principal with Blue Point.
Twin Brook Capital Partners, the middle-market direct lending arm of Angelo Gordon, served as administrative agent on debt financing to support the buy of Mattco Forge by Blue Point. Chicago-based 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 up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
Lazard was the financial advisor to Mattco on this transaction.
© 2019 Private Equity Professional | December 9, 2019
