metal components

Argand Partners has acquired Sigma Electric Manufacturing, a designer and manufacturer of small and complex metal components used in the electrical products, power transmission and distribution, and general industrial markets. Argand Partners was founded in 2015 by former senior members of Castle Harlan and Sigma becomes the firm’s first portfolio company.

Sigma’s die-casting and sand-casting manufacturing technologies produce components with complex shapes and tight tolerances across a range of metals and alloys including aluminum, zinc, copper alloys, iron, and steel. The company’s product portfolio has more than 10,000 SKU’s. Sigma, with nearly 300 employees, operates a 180,000 sq. ft. warehouse and distribution center in the Raleigh suburb of Garner, NC and has seven manufacturing facilities in India – four in Pune (near Mumbai) and three in Jaipur (near New Delhi) (www.sigmaelectric.com).

“Argand brings a significant level of manufacturing and industrial market experience in addition to global networks, which will assist us as we look to expand our market presence and geographic footprint,” said Viren Joshi, Sigma’s President and Chief Executive Officer.

Argand plans to work with Sigma management to support the company through the next phase of its growth plans. “We believe Sigma offers customers a unique value proposition and has a truly differentiated position as a global supplier in the precision metal components marketplace. We see exciting potential for further expansion into new markets and geographies,” said Tariq Osman, Partner and Managing Director at Argand.

Argand makes control investments in companies with at least $20 million in EBITDA. Sectors of interest include industrial manufacturers and service providers. The firm was founded in 2015 by long-time ex-Castle Harlan colleagues, Heather Faust, Howard Morgan, and Tariq Osman. Argand Partners is based in New York (www.argandequity.com). (Editor’s note: The Argand lamp, a kind of oil lamp, was invented and patented in 1780 by Aimé Argand. The lamp became popular because its light output was brighter than that of earlier lamps).

Brightwood Capital Advisors (www.brightwoodlp.com) provided debt financing to back the buy of Sigma by Argand. Brightwood – with offices in New York, Chicago, Atlanta and Los Angeles – provides first and second lien term loans, mezzanine and minority equity to companies with EBITDA of $5 million to $75 million.

Winston & Strawn (www.winston.com) provided US legal services and Luthra & Luthra (www.luthra.com) acted as Indian legal counsel to Argand.

© 2016 Private Equity Professional • 10-14-16

Partners Group has completed its acquisition of a controlling stake in Dynacast. This transaction was first announced in December 2014.  The seller of Dynacast includes a consortium of investors that purchased the company in 2011. The consortium includes Izurium Capital Management, W Capital Partners, Laurel Crown Partners, Kenner & Company, Babson Capital Management, Macquarie Capital and members of the management team.

Partners Group is joined in the acquisition of Dynacast by Kenner & Company, an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction.

Dynacast is a manufacturer of engineered metal components using die-casting and metal injection molding technologies to produce components with complex shapes and tight tolerances. The company’s products are used in the automotive, telecommunications, computing, consumer electronics, and healthcare industries. Dynacast is headquartered in Charlotte and has 23 manufacturing plants in 16 countries worldwide (www.dynacast.com).

Partners Group is a global private markets investment management firm with over $40 billion of assets under management in private equity, private real estate, private infrastructure and private debt. The firm is headquartered in Zug, Switzerland, and has over 700 employees across 18 offices around the globe (www.partnersgroup.com).

Kenner & Company invests in middle-market industrial and manufacturing businesses. The firm was founded in 1986 and is headquartered in New York (no website found).

The transaction was financed by JPMorgan Chase Bank, Barclays and Macquarie Capital.  Morgan Stanley and Co. served as exclusive financial advisor to Dynacast.

 © 2015 PEPD • Private Equity’s Leading News Magazine • 2-3-15

Partners Group has signed an agreement to acquire a controlling stake in Dynacast International, a precision die caster and metal injection molder, at an enterprise value of $1.1 billion. Partners Group is joined in the acquisition by Kenner & Company, an existing shareholder, and the company’s management team, which will both roll over significant equity stakes into the new transaction which is expected to close in February 2015.

Dynacast is being acquired by Partners Group from a consortium of investors that purchased the company in 2011. The consortium includes Izurium Capital Management, W Capital Partners, Laurel Crown Partners, Kenner & Company, Babson Capital Management, Macquarie Capital and members of the management team.

Dynacast is a manufacturer of engineered metal components using precision die-casting and metal injection molding technologies to produce customized, high-volume components with complex shapes and tight tolerances. The company’s products are used in the automotive, telecommunications, computing, consumer electronics, and healthcare industries. Dynacast is headquartered in Charlotte, NC and has 23 manufacturing plants in 16 countries worldwide (www.dynacast.com).

“Dynacast has a long and rich history of continuously refining our proprietary manufacturing technologies, in-house tooling expertise and innovative design processes to manufacture highly complex metal components in a fast, repeatable and precise manner to provide greater value to our customers,” said Simon Newman, Dynacast’s Chief Executive Officer.  “With the investment led by Partners Group, we have the strategic support and capital backing to enter into the next phase of growth for our company.”

Partners Group is a global private markets investment management firm with over $40 billion of assets under management in private equity, private real estate, private infrastructure and private debt. The firm is headquartered in Zug, Switzerland, and has over 700 employees across 18 offices around the globe (www.partnersgroup.com).

“We are really looking forward to working with Simon and the rest of Dynacast’s management team in this next stage of the company’s development,” said Joel Schwartz, Managing Director at Partners Group in New York.  “Dynacast already has a truly differentiated position as a global supplier in the precision metal components marketplace and we see exciting potential for further expansion. We believe our global platform and deep network of industry relationships make us the ideal partner to back management’s vision for the business going forward, particularly through our assistance with acquisitions and with the deepening of the company’s integrated, worldwide approach.”

The transaction has fully committed financing from JPMorgan Chase Bank, Barclays and Macquarie Capital.  J.P. Morgan Securities, Barclays, Macquarie Capital, Goodwin Procter and KPMG are advising Partners Group on the transaction.

Morgan Stanley and Co. served as exclusive financial advisor to Dynacast while Hunton & Williams and Davis Polk & Wardwell served as legal counsel to Dynacast.

2014 PEPD • Private Equity’s Leading News Magazine • 12-17-14

Kidd & Company has acquired Imaginetics, a manufacturer of precision metal components and assemblies for the aerospace industry.

Imaginetics provides CNC machining, sheet metal fabrication and assembly to its customers which include Boeing Commercial Airplanes, Boeing Defense Services, Hexcel Corporation, Spirit Aerosystems, and Zodiac Aerospace, among others.  Imaginetics has 90 employees at its 52,000 square foot manufacturing facility located in Auburn, WA (www.imagineticsinc.com).

Centerfield Capital Partners (www.centerfieldcapital.com) provided subordinated debt and equity to support the transaction. BMO Harris Bank provided senior debt.

“We are impressed by the breadth of the company’s capabilities, spanning metal fabrication, CNC machining and part-to-part and final assembly, to offer customers a single-vendor solution for a variety of complex manufacturing needs,” said Donald Hardie, a Partner at Kidd & Company. “We are excited to partner with the management team to build on the terrific foundation they have created and, together, plan to continue to grow Imaginetics by serving the increasing demands of its customer base.”

In connection with the transaction, Imaginetics has promoted Scott Strong to President and Pat Prince to Vice President of Operations, while adding Bob Mozzacavallo as the company’s new Chief Financial Officer and Michael Cook as the new Vice President of Sales, Marketing and Contracts.

“We are very excited about our new partnership with Kidd & Company. There are many growth opportunities for Imaginetics and we are confident in our ability to capitalize on them with the help of our newly expanded management team and the additional resources that come from the Kidd & Company team,” said Mr. Strong.

Kidd & Company is the private investment arm of the Kidd Family Office and is engaged in sponsoring private equity transactions in the lower middle market. The firm was founded in 1976 and is headquartered in Old Greenwich, CT (www.kiddcompany.com).

“This investment fits perfectly with Kidd & Company’s investment strategy of partnering with management teams to transform businesses in industries undergoing change in order to build fundamental value.  We are very excited about the opportunities within the aerospace sector and are thrilled to be partnering with Scott and the expanded management team to take the company to the next level,” said Tony Castor, a Kidd & Company Partner and Board member of Imaginetics.

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-24-13