industrial components

Hicks, Riverside and Weinberg Acquire Intellifuse

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H-D Advanced Manufacturing, formed by Hicks Equity Partners, The Riverside Company and Weinberg Capital Group to acquire and develop manufacturers of precision engineered components, has acquired Intellifuse Technologies.

Intellifuse is a manufacturer of carbide coated radial bearings, pads and other wear products.  The company’s products are used primarily by oil and gas companies in downhole drilling motors. Other industries served include mining and industrial.  Intellifuse is based in Houston (www.intellifusecoating.com).

Intellifuse is the sixth acquisition completed by H-D in the two years since its formation in December 2012, joining Overton Chicago Gear Corporation, a manufacturer of large, heavy duty gears and gearboxes; Innovative Mechanical Solutions (iMECH), a manufacturer of custom bearings for the downhole mud motor industry; Leading Edge Heat Treating Services, a provider of heat treating solutions; Sungear, a manufacturer of precision gears and assemblies for the aerospace industry; and Crown, a manufacturer of specialty components used in hydraulic actuation systems for commercial aircraft.

“Beyond serving existing market needs, Intellifuse’s high-tech coatings can benefit almost any steel wear component,” said Riverside Principal Rob Langley. “Wear components are also used extensively in mining, plastics, paper, food products and more. This is a compelling growth opportunity for H-D.”

The operations of Intellifuse will be combined with those of iMECH which was acquired by H-D in August 2013.  The addition of radial bearings to the H-D product portfolio is expected to complement the existing thrust bearings currently offered by iMECH.  Intellifuse’s co-founders, Mike Speckert and Majid Delpassand, will remain with the business. Mr. Speckert will be the Manager of US Operations for the combined iMECH and Intellifuse business, and Mr. Delpassand will serve as an advisor to the company.

H-D is actively seeking acquisition opportunities in aerospace components, gears and gearboxes, specialty bearings, and other heavy-duty, precision-engineered products.

“The addition of Intellifuse represents H-D’s commitment to providing the best products to its customers.  The leadership team has proven its ability to execute on strategic growth opportunities and we look forward to supporting Intellifuse with the financial and operational resources it needs to reach its goals,” said Tom Hicks, founder of Hicks Equity Partners.

Hicks Equity Partners is the private equity arm for Hicks Holdings, a holding company for the Thomas O. Hicks family’s assets. The firm invests in companies with enterprise values of less than $200 million and is based in Dallas (no website found).

The Riverside Company acquires businesses that have valuations of up to $250 million.  Since its founding in 1988, Riverside has invested in more than 340 transactions and the firm’s international portfolio includes more than 70 companies.  Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Weinberg Capital Group is a family office that specializes in acquiring middle-market companies that are based in North America and have annual revenues from $15 million to $100 million and EBITDAs ranging from $2 million to $10 million.  Sectors of interest include manufacturing, business services, medical and healthcare, aviation services, consumer products, and value-added distribution. Weinberg Capital Group is based in Cleveland (www.weinbergcap.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-10-14

Hastings Exits Advanced Precision Products

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Hastings Equity Partners has sold its portfolio company, Advanced Precision Products, to Precision Engineered Products, a portfolio company of The Jordan Company and Nautic Partners.

Advanced Precision Products (APP), led by CEO Jeff Buck, is a manufacturer of components and products used by original equipment manufacturers in the oil & gas, medical, aerospace, automotive, military and commercial sectors.  The company is headquartered north of Hartford, CT in Palmer, MA with additional facilities in Hingham and Franklin, MA (www.advancedprecisionproducts.net).

“Jeff and his management team have done an exceptional job at building APP into one of the leading precision component manufacturers,” said Bruce MacRae, Hastings’ Managing Director. “Through the acquisition and integration of four companies, Jeff has created a robust manufacturing platform.”

Hastings invests from $5 million to $20 million in lower middle-market energy services and equipment businesses that have trailing EBITDA from $4 million to $15 million. The firm was founded in 2004 and is based in Waltham, MA (www.hastingsequity.com).

“We’ve really enjoyed working with the Hastings team and appreciate its support and guidance over the years,” said Mr. Buck.  “We expect APP’s growth to remain strong and look forward to being part of Precision Engineered Products where we can leverage their resources to further build on our success.”

Trudeau & Trudeau Associates (www.trudeau-trudeau.com), a Boston-based business intermediary, served as financial advisor to APP and Morse, Barnes-Brown & Pendleton (www.mbbp.com) served as legal counsel to the shareholders of APP.

2014 PEPD • Private Equity’s Leading News Magazine • 9-5-14

Riverside and Hicks Acquire iMech

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H-D Advanced Manufacturing Company, a portfolio company of Hicks Equity Partners and The Riverside Company, has acquired Innovative Mechanical Solutions and Leading Edge Heat Treatment (collectively, iMech).

iMech is a designer and manufacturer of bearings for the directional drilling motor industry. Customers include oilfield service companies and directional drilling companies. The company operates a manufacturing and heat-treatment plant in Edmonton (headquarters) and has a warehouse and distribution center in Houston (www.imech.ca). iMech will continue to be led by Founder and President Wayne Horley, and will be operated as an independent division within H-D.

“We are delighted to add a proven and promising company like iMech to H-D,” said Riverside Partner Tim Gosline. “H-D was established to partner with outstanding industrial companies like iMech, and we believe that iMech will be better positioned to serve its customers as part of the H-D family of companies.”

H-D Advanced Manufacturing is actively seeking add-on opportunities in gearing, bearings, and other heavy duty, precision-engineered component sectors.

Hicks Equity Partners and The Riverside Company partnered with Christopher DiSantis to form H-D Advanced Manufacturing Company in December 2012 to acquire heavy-duty, precision-engineered industrial components companies. HD’s first acquisition, also in December 2012, was the purchase of Overton Chicago Gear Corporation, a manufacturer and distributor of large, custom, mission-critical gears and gearboxes. Overton Chicago Gear was founded in 1888 and employs more than 200 people at three manufacturing facilities in the Chicago area (www.oc-gear.com).

“iMech is a great fit for H-D,” said H-D CEO Chris DiSantis. “We’re thrilled to be adding a new business line, exceptionally talented people and a tremendous customer base through this new partnership with iMech. iMech’s custom bearings are specifically designed and manufactured for the harsh environments in which they are used, resulting in a better bearing with a longer life.”

Working with Mr. Gosline on the transaction for Riverside were Vice President Rob Langley, Senior Associate Spencer Moore, and Associate Conner Harris. Origination Principal Erik Holmsen sourced the opportunity and Partner Anne Hayes worked on financing the transaction for the Riverside.

PNC Business Credit, GE Antares Capital and Babson Capital provided the financing, and KPMG, Jones Day and Gowling Lafleur Henderson advised Riverside on the investment.

The Riverside Company is a private equity firm focused on the smaller end of the middle market (“SEMM”). Riverside specializes in investing in SEMM companies (those valued up to $250 million) and partners with management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in more than 310 transactions with a total enterprise value of more than $6 billion. The firm’s current portfolio includes more than 75 companies. The Riverside Company is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

Hicks Equity Partners is the private equity arm for Hicks Holdings, a holding company for the Thomas O. Hicks family’s assets. The firm invests in established companies with enterprise values of less than $200 million. Hicks Equity Partners is based in Dallas (no website found).

© 2013 PEPD • Private Equity’s Leading News Magazine • 8-1-13