CTS Corporation has acquired CTG Advanced Materials (CTG-AM), a portfolio company of Blue Wolf Capital since December 2011, for $73 million in cash.
CTG-AM was formed in October 2013 by Blue Wolf when its portfolio company Channel Technologies Group (acquired by Blue Wolf in December 2011), acquired HC Materials, a maker of piezoelectric single crystals. Piezoelectric crystals have the ability to generate an electric charge in response to applied mechanical stress.
Today, CTG-AM develops and manufactures single crystal piezoelectric materials serving OEMs in the medical industry. The company’s products are used in high definition ultrasound imaging (3D and 4D), as well as intravascular ultrasound technology. Other applications for these materials include wireless pacemakers, implantable hearing aids and defense technologies. CTG-AM’s products are available in a variety of forms including plates, wedges, discs, cylinders, rings, tubes and cubes. According to Blue Wolf, CTG-AM is the only company to have vertically integrated its entire single crystal manufacturing process. The company was founded in 1997 and is headquartered outside of Chicago in Bolingbrook (www.channeltechgroup.com) (www.hcmat.com).
Blue Wolf invests in companies in which management of relationships with complex constituencies – such as government and labor – can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. The firm focuses its efforts on companies based in the United States and Canada. Blue Wolf is currently investing its third fund with $300 million in limited partner equity commitments. CTG Advanced Materials was a portfolio company of Blue Wolf Capital Fund II, LP. The firm is headquartered in New York (www.blue-wolf.com).
According to CTS Corporation, the acquisition of CTG-AM provides it with intellectual property and proprietary manufacturing methods that expand its offering of piezoelectric materials. This will allow CTS to become the one of the largest commercial producers of both single crystal materials and traditional piezoelectric ceramics. “CTG-AM’s market leadership, technological expertise and winning spirit are a perfect fit for CTS,” said Kieran O’Sullivan, CEO of CTS Corporation. “The acquisition of CTG-AM increases CTS’ involvement in the medical industry, and expands our portfolio of products and technologies around the categories of ‘sense, connect and move’.”
CTS Corporation (NYSE: CTS) is a designer and manufacturer of sensors, actuators and electronic components sold to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets. CTS manufactures its products in North America, Europe and Asia and is headquartered in Elkhart, IN (www.ctscorp.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-14-16