machining

Mill City Capital Acquires HN Precision

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Mill City Capital has acquired HN Precision, a manufacturer of machined products, from Cerberus Business Finance.

HN Precision’s capabilities include horizontal milling and turning, vertical milling, gun drilling, honing, broaching, centerless grinding, screw machining and laser etching. The company’s products are used in multiple end markets including heavy truck, off-highway vehicle, recreational firearms, rail, and general industrial.

HN Precision is led by CEO Dan Nash and it has 240 employees and 175 CNC machines with 300,000 sq. ft. of manufacturing space in Lake Bluff, IL (headquarters) and Rochester, NY (www.hnprecision.com).

“The Mill City team has a successful history investing in precision machining businesses, making HN Precision a great fit,” said Zander Rutlin, a Managing Director at Mill City Capital. “HN Precision’s management team and long-standing customer relationships across multiple industry verticals evidences a platform with significant upside. The business has a disciplined approach of perfecting manufacturing processes which aides and supports new business generation. There is a strong foundation at HN Precision that we look forward to growing with Dan Nash and his team.”

“I am very proud of how our business has evolved over the past several years, both through diversification of end markets and steady growth in five key industries. Our team is confident that Mill City can help us extend and enhance our ongoing growth strategy,” said Mr. Nash.

Mill City Capital invests from $10 million to $30 million of equity capital in companies with enterprise values of $30 million to $150 million and EBITDA of $5 million to $25 million. Sectors of interest include engineered industrial products; industrial services; transportation & distribution; agribusiness & food ingredients; food; and consumer products & services. Mill City focuses on companies headquartered in the Midwestern United States and western and central Canada, with a particular focus on companies located in Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota. The firm is based in Minneapolis (www.millcitycapital.com).

Angle Advisors was the financial advisor to HN Precision on this transaction. “I enjoyed working with the Angle team, and especially appreciated their attentiveness and dedication to a quick moving process and transaction,” said Mr. Nash. Angle Advisors has completed 185 transactions since 2009 for multinational corporations, privately-held companies, private equity funds, and public sector clients. The firm has offices near Detroit in Birmingham, MI; Houston, TX; Wiesbaden, Germany; and Shanghai, China (www.angleadvisors.com).

“HN Precision is an excellent company with a tremendous management team. We were impressed with Angle Advisors’ ability to understand its business and industry dynamics and execute a strategic transaction with a great financial sponsor in Mill City,” said Joseph Naccarato, Chief Operating Officer at Cerberus Business Finance.

Cerberus Business Finance, the seller of HN Precision, is the middle market lending group of Cerberus Capital Management. The group is based in New York (click HERE for the group’s website).

© 2018 Private Equity Professional | January 29, 2018

Generation Growth Sells Atlantic Precision

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Generation Growth Capital (GGC) has sold Atlantic Precision, an aerospace machining company, to Precision Castparts.

Atlantic Precision (API) uses 3D metal printing and additive manufacturing technologies to provide prototyping and low volume production parts that are used in the aerospace industry. GGC invested in API in October 2014 to help the company execute on a growth and development strategy in additive manufacturing.  API is based in Port St. Lucie, FL (www.atlanticprecision.com).

“When GGC was first introduced to the team at API, we recognized their initial efforts in additive manufacturing could be a real game changer for prototyping and manufacturing in the aerospace markets,” said John Reinke, Managing Director of GGC. “We are proud to have had the chance to work with the team to support their growth and we look forward to watching their continued success as a part of Precision Castparts.”

Precision Castparts (NYSE: PCP) is an industrial goods and metal fabrication company that manufactures investment castings, forged components, and airfoil castings for use in the aerospace, industrial gas turbine, and defense industries. The company is headquartered in Portland, OR (www.precast.com).

“API represented a model investment for GGC. We were able to provide capital and a business support system that helped the company execute on an aggressive investment and growth strategy,” said Cory Nettles, a Managing Director of GGC.

GGC invests from $1 million to $10 million in manufacturing, service, and distribution businesses that have enterprise values of less than $30 million and sales ranging from $5 million to $50 million. Investments are primarily structured as equity but subordinated debt and warrant structures are also considered. The firm is headquartered in Milwaukee and has an additional office in Chicago (www.generationgrowth.com).

Imperial Capital (www.imperialcapital.com) was the financial advisor to API on the transaction.

© 2016 Private Equity Professional • 10-26-16

Graycliff Acquires A-1 Machine

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Graycliff Partners has made an investment in A-1 Machine Manufacturing, a precision component manufacturer. Graycliff invested out of its latest buyout fund, Graycliff Private Equity Partners III.

A-1 Machine is a manufacturer and integrator of machined components and systems that are used in flat panel display equipment, semiconductor equipment and other general industrial end-markets. The company’s products – made from steel, stainless steel, aluminum, and other exotic metals – range from single components to turn-key manufacturing equipment and systems. The company was founded in 1977 by Yong Pak and is headquartered in Santa Clara, CA with additional operations in San Jose, CA and Incheon, South Korea (www.a-1machine.com).

“A1’s geographic presence, with strategic locations in Silicon Valley and Asia, is a strong differentiator for the company, and one that should allow it to grow through a variety of different avenues,” said Carl Barcoma, a Principal at Graycliff.

At closing of the transaction, Dan Rubin was named the new CEO of A-1. “We are extremely enthusiastic about the prospects of A-1, especially with our end markets of OLED (organic light-emitting diode) display and semiconductors strengthening and growing rapidly,” said Mr. Rubin. “Graycliff will help A-1 further increase the development of new product and service capabilities, allowing A-1 to better serve its current customers and penetrate new customers and end-markets.”

Graycliff invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution.  Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital.  Graycliff is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).

© 2016 Private Equity Professional • 9-7-16

Joshua Adds-on to Precision Machining Platform

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Joshua Partners has completed an add-on acquisition for its portfolio company Precision Engineered Technologies with the buy of Ray Industries.

Ray Industries is a maker of precision parts and components for the aerospace, defense, medical, industrial and energy industries.  The company specializes in using a technique called roll-threading.  This technique forms a thread on a metal part using a roller die rather than through the more traditional method of metal cutting or grinding.  Rolled threads have a smoother surface and are stronger than threads made with other methods.  Ray Industries is headquartered west of Milwaukee in Waukesha, WI (www.rayindustries.com).

“Ray Industries is a great strategic fit into our Power Generation group and allows us to bring that market a complete machining solution.  Roll threading is the most cost efficient way to produce a thread and typically yields parts that are 30% stronger than a thread that is cut into material,” said Brian Murray, President of Precision Engineered Technologies.

“Raymond Fish and his team have built Ray Industries into a world class provider of high tech precision machined components utilizing state of the art roll-threading technologies developed by the company over the past 40 years,” said Charles Corpening, Chairman and Founder of Joshua Partners.  “The acquisition of Ray Industries provides Precision additional customer diversification while helping to accelerate our internal growth initiatives in existing markets through greater scale and capability.”

According to Mr. Murray, Precision Engineered Technologies and Joshua Partners are very active pursuing acquisitions of additional precision machining companies.

Joshua Partners makes control investments in businesses with revenues of $10 million to $100 million across an array of industries. Joshua Partners is led by its founder Charles Corpening. The firm was founded in 2007 and is based in Newton, PA (www.joshuapartners.com).

2015 PEPD • Private Equity’s Leading News Magazine • 5-4-15

Promus Equity and Grace Equity Acquire A&K C.N.C. Machining

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QCC, a portfolio company of Promus Equity Partners and Grace Equity, has acquired A&K C.N.C. Machining, a manufacturer of metal products. QCC, formerly Quality Control Corporation, was acquired by Promus and Grace in April 2012.

This transaction is the second acquisition of a family-owned machining business by QCC in the past twelve months.  “We have a high degree of confidence in the team at QCC and are thrilled to invest in the expanding breadth and depth of the company,” said Sarah Wuellner, a partner at Promus.  “We continue to be an active buyer of the specialty machining companies and hope that we will be a preferred option for business owners ready for a transition.”

A&K C.N.C. Machining manufactures high tolerance metal products for the energy, aerospace and medical industries. A&K specializes in build to print production of small and medium size runs of high tolerance metal products made from aluminum, stainless steel, titanium and exotic metals. A&K was founded in 1965 by the late Anton Kastory and has operated as a family owned business under the leadership of his son Frank for the last 15 years.  The company is based in the Chicago suburb of Northbrook (no website found).

“I am thrilled that Frank has chosen to entrust us to carry on the legacy of his family business. A&K expands our turning capabilities and adds a group of talented and hardworking machinists to the QCC family,” said Jon Goreham, QCC’s President. “We are excited to build upon the long standing customer relationships at A&K and make the full capabilities of QCC available to them.”

QCC is a provider of manufacturing services and specializes in precision machining, assembling and testing of products and machined components. Through its Qualiseal Technology division the company designs and manufactures custom-engineered mechanical seals for aerospace applications. QCC was founded in 1951 and is headquartered in the Chicago suburb of Harwood Heights (www.qualiseal.com).

Promus Equity Partners is a private equity investment firm affiliated with Promus Holdings, a multi-family asset management firm.  Promus targets lower middle market companies with EBITDA’s of $15 million or less. Sectors of interest include consumer products, food & beverage, industrial products, manufacturing services, specialty materials, distribution, and business services.  The firm is based in Chicago (www.promusequity.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-29-15

H-D Advanced Manufacturing Acquires Crown Precision

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H-D Advanced Manufacturing Company has acquired Crown Precision Machining, a provider of high-precision machining services to manufacturers serving the commercial aerospace and defense industries.

H-D was formed in December 2012 by a partnership among The Riverside Company, Hicks Equity Partners and Weinberg Capital Group to acquire and develop manufacturers of mission-critical, precision engineered components. H-D is led by Chris DiSantis, CEO, and Dale Mikus, CFO.  H-D is actively seeking acquisition opportunities in gearing, bearing and other heavy duty, precision-engineered component sectors. The company is based in Pittsburgh.

Crown Precision Machining manufactures and assembles high precision machined components used in commercial aerospace and defense applications. Crown manufactures rod ends, caps, pinions, transfer tubes and other parts. These specialty components are incorporated into hydraulic actuation systems that control the movement of wings, rudders, landing gears, ailerons and flaps. Crown’s products are principally used on Boeing’s 737 platform but can also be found on Boeing 777, 787 and 747 aircraft as well as on business and regional aircraft. The company is headquartered in Irwindale, CA (www.crownprecision.com).

The buy of Crown is the fifth acquisition completed by H-D since being formed as a platform company by Riverside, Hicks Equity, and Weinberg Capital.  “The H-D platform has made excellent progress since its formation less than two years ago,” said Tom Hicks, the founder of Hicks Equity Partners.  “Crown is another important strategic addition to the platform Chris DiSantis and his team are building.”

The four other add-ons completed by H-D include Overton Chicago Gear – a manufacturer of large, heavy duty gears and gearboxes; Innovative Mechanical Solutions – a manufacturer of highly engineered, custom bearings for the downhole mud motor industry; Leading Edge Heat Treating Services – a provider of heat treating solutions; and Sungear – a manufacturer of high precision gears and assemblies for the aerospace industry.

The Riverside Company is focused on acquiring growing 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) (www.riversideeurope.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).

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 EBITDA 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).

The Riverside Company’s Jeremy Holland was responsible for sourcing the acquisition opportunity, and H-D was advised on the transaction by KPMG and Jones Day.

Williams Capital Advisors (www.williamscap.com) – an investment bank based in Palo Alto – acted as exclusive advisor to Crown.

2014 PEPD • Private Equity’s Leading News Magazine • 10-17-14

Insight Equity Acquires Midstate Berkshire

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Insight Equity has acquired Midstate Berkshire from Precision Holding, a portfolio company of Cerberus and SAC Capital.

Midstate Berkshire is a provider of precision machining, fabrication and assembly services for the aerospace, defense, power generation, and oil & gas industries. The company has over 200,000 square feet of manufacturing space with the capacity to produce both large and small scale components and has the ability to handle volumes ranging from prototyping to full-scale production. Midstate Berkshire’s operations include more than 100 state-of-the-art, multi-axis CNC machines. The company is headquartered in Westfield, MA (www.berkshireindustries.com).

“Midstate Berkshire has differentiated itself through its ability to deliver complexity, quality and value to its customers. We are looking forward to partnering with its president, Duane Pekar, and the rest of the management team to provide further resources and accelerate the company’s trajectory,” said Victor Vescovo, COO & Managing Partner at Insight Equity.

Insight Equity makes control investments in middle market, asset intensive companies across a range of industries and specializes in partnering with companies experiencing some level of underperformance. Insight Equity also seeks complex and challenging situations, including public to private transactions, corporate divestitures, bankruptcies, restructurings and private family ownership. The firm is based in Southlake, TX (near Dallas) and also has an office in New York (www.insightequity.com).

“Midstate Berkshire is a key supplier of critical parts to companies across several attractive end-markets. We are excited to work with the management team to continue to expand the company’s capabilities and product offerings”, said James Jackson, a Senior Vice President at Insight Equity.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-27-14

Joshua Partners Acquires Imperial Machine and Tool

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Precision Engineered Technologies, a portfolio company of Joshua Partners, has acquired Imperial Machine and Tool Company, a boring & machining company based in Wadsworth, OH.

“The team at Imperial has built the company into a leading provider of turning, milling, and boring of rough steel into finished parts. Imperial provides dedicated and complex machining services to long term customers in several high growth markets, including the hydraulic fracturing segment of the oil & gas industry and the steel industry,” said Charles Corpening, the Chairman and Founder of Joshua Partners.

Joshua Partners makes control investments in businesses with revenues of $10 million to $100 million across an array of industries. Joshua Partners is led by its founder Charles Corpening. The firm was founded in 2007 and is based in Newton, PA (www.joshuapartners.com).

“The precision engineered machining industry is fragmented and characterized by a large number of small businesses. Our partnership with Joshua Partners will help accelerate our growth initiatives in existing and new markets, allowing us to achieve the ideal scale to exploit even more meaningful growth opportunities,” said Precision’s President, Brian Murray. “The leadership at Joshua Partners has a long history of successfully partnering with entrepreneurial management teams with a strong vision of growth. With Joshua Partners’ sponsorship, we look forward to pursuing acquisitions of additional precision machining companies in the near future.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 7-29-13