LFM Capital has acquired Eckhart & Associates, a maker of ergonomic tooling. This is the first portfolio company for the firm’s first fund which closed in October 2014.
Eckhart & Associates is a designer and manufacturer of specialized ergonomic tools that are sold to automotive and industrial manufacturers. According to 
Eckhart, ergonomically correct machinery enhances process reliability and results in improved worker performance, worker safety, and product quality. Products
include custom-engineered lift assists, torque reaction devices, fixtures, inspection equipment and workstations. Customers include automotive and industrial original equipment manufacturers such as GM, Ford, Tesla, Chrysler, John Deere, Bradford White and Caterpillar. The company operates from three company-owned facilities in Lansing, MI (www.eckhartusa.com).
Eckhart & Associates was founded in 1974 by Harry Eckhart and has grown from a small manufacturer of specialty hand tools and sub-assembly fixtures for a single automotive customer to a designer and manufacturer of ergonomic tools sold to many Fortune 500 automotive and industrial customers. Today, the company is led by its President Rick Girth and Vice President Bob Breard.
“My partner Bob Breard and I were looking for a business partner able to help take Eckhart to the next level,” said Mr. Girth. “We chose to partner with LFM because of the team’s direct knowledge and experience in our business, its operational focus on continuous process improvement best practices, and its access to the managerial talent needed to grow and expand our business. Most importantly, the LFM team are collaborative partners who speak our language and share our values in building a strong future for the company.”
LFM Capital closed its first fund, LFM Capital Partners, LP, with $110 million in aggregate capital commitments in October 2014. The new fund invests in North American based private manufacturing and industrial services companies that have revenues from $10 million to $100 million and enterprise values ranging from $15 million to $75 million. LFM is managed by a team composed of Fortune 50 executive managers and private equity professionals who in total have decades of experience in lower middle market investing. The firm was formed in May 2014 by Steve Cook, Executive Managing Director; Rick Reisner, Managing Director; and Dan Shockley, Managing Director. LFM is based in Nashville (www.lfmcapital.com).
According to Steve Cook the Eckhart acquisition is a perfect fit for LFM. “The Eckhart acquisition fits squarely into LFM’s investment strategy. We are excited to partner with the Eckhart team to unlock what we see as significant growth potential for the company. Industrial manufacturing companies are increasingly focused on enhanced ergonomics, production and quality as a means of improving operations and controlling costs. We have identified several new and attractive end-market opportunities that include agricultural and construction equipment, aerospace, and power sports manufacturing where LFM’s professional networks offer access to drive new customer growth.”
“We believe that this is a great time to bet on US manufacturing as it continues to experience an on-shore renaissance. Eckhart is right at the heart of what is happening to increase production, improve workplace safety and control manufacturing costs in order to build successful and profitable US manufacturing leaders,” concluded Mr. Cook.
© 2015 PEPD • Private Equity’s Leading News Magazine • 6-19-15
