Wynnchurch Capital has acquired Pennsylvania Machine Works (Penn Machine), an integrated manufacturer of high pressure forged fittings and branch connections.
Penn Machine’s products range in diameters from 1/8″ to 72″ and are used in the marine, oil and gas, nuclear power, petrochemical, shipbuilding, cryogenic and steel making industries. The company has capabilities in carbon and stainless steels, nickel alloys, chromium-molybdenum alloys, titanium, aluminum alloys, and copper-nickel.
The company operates through three divisions – Penn Machine, US Drop Forge and Penn Texas – and is headquartered near Philadelphia in Aston, Pennsylvania with a forging facility nearby in Swedesboro, New Jersey and a machine shop in Houston, Texas. Penn Machine was founded in 1931 by Charles Lafferty and today is led by President Joe Pro.
“We are committed to providing our customers with a one-stop solution for all their forged fittings and branch connection needs and are excited to partner with Wynnchurch as we continue that mission,” said Mr. Pro. “Wynnchurch understands the importance of meeting the needs of our customers which is constantly evolving. Wynnchurch is the right partner to enable Penn Machine to reach the next level of growth.”
“Penn Machine has built a strong reputation for providing customers with industry-leading service levels across a broad offering of fittings and branch connections,” said Greg Gleason, a managing director at Wynnchurch. “We are excited to partner with Joe and his team to continue the company’s impressive track record.”
Wynnchurch makes investments in middle-market companies that have revenues of $50 million to $1 billion. Sectors of interest include aerospace & defense, automotive, building products, chemicals, food, logistics, energy services & equipment, environmental services, industrial products & services, metals & mining, and paper & packaging.
Wynnchurch has recent experience investing in the forging and machining sector. Last June, it formed Premier Forge Group to acquire two closed-die forging facilities from publicly traded Allegheny Technologies.
The acquired operations are located in Portland, Indiana and Lebanon, Kentucky and produce forgings used by OEMs in the transportation, oil & gas, construction, mining, agricultural, and aerospace and defense markets.
In January 2020, Wynnchurch closed its fifth private equity fund, Wynnchurch Capital Partners V LP, with $2.28 billion of committed capital. The new fund, which began its marketing in September 2019 with a target of $1.6 billion, was oversubscribed and closed at its hard cap. Wynnchurch is actively seeking investment opportunities for its new fund.
The buy of Penn Machine follows Wynnchurch’s buy last November of Clyde Industries, an Atlanta-based designer and manufacturer of soot blowers that are used to clean residue and deposits from the walls of steam boilers and heat exchangers.
Wynnchurch was founded in 1999 and is headquartered in the Chicago suburb of Rosemont with additional offices in Los Angeles (El Segundo), and Toronto.
© 2020 Private Equity Professional | February 27, 2020