Rosewood Private Investments has acquired MultiCam, a portfolio company of Blue Sage Capital and a manufacturer of computer numeric controlled cutting machines. Blue Sage first invested in MultiCam in April 2008.
MultiCam manufactures and distributes computer numeric controlled (CNC) cutting machines including routers, plasma, laser, water jet and knife cutting machines. Through its network of independently owned distributors, MultiCam sells its products to a diverse set of end users around the world. MultiCam was founded in 1989 is based in Dallas (www.multicam.com).
Rosewood Private Investments invests from $5 million to $35 million in US based businesses with $20 million to $150 million in revenue and EBITDA margins of at least 10%. Sectors of interest include specialty manufacturing, value-added distribution, business and consumer services, commercial & consumer products, and media & communications. The firm is the private equity arm of The Rosewood Corporation, which is wholly owned by the Caroline Hunt Trust Estate, which was established in 1935 by Texas oil tycoon H.L. Hunt. Rosewood Private Investments is based in Dallas (www.rosewoodpi.com).
Blue Sage Capital specializes in growth, recapitalization and buyout financings of smaller middle-market companies based in Texas and the Southwest. Most of Blue Sage’s investments are in established, profitable companies with $10 million to $100 million of revenue and $3 million to $10 million of cash flow. Blue Sage invests in a variety of industries, with each initial investment in a company ranging from $10 million to $20 million. The firm is based in Austin, TX (www.bluesage.com).
Deloitte Corporate Finance (DCF) acted as the exclusive financial advisor to MultiCam. “DCF’s knowledge and experience added value throughout the process. Their commitment to MultiCam helped us to achieve our overall goals and objectives. DCF’s insight and experience with middle market companies and transactions were vital to us finding the right partner for the next stage of MultiCam’s growth,” said Kris Hanchette, president of MultiCam.
“It has been a pleasure working with Kris and the rest of the MultiCam team to help them find a partner like Rosewood Private Investments, who they view as sharing the company’s vision for the future,” said Tom Spivey, managing director, Deloitte Corporate Finance and its southwest region leader. “We have a long-standing relationship with the Blue Sage team and are delighted to have advised their portfolio company on this transaction.”
2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14