ARCH Global Precision, a portfolio company of Strength Capital Partners and Main Post Partners, has been acquired by The Jordan Company.
ARCH is a manufacturer of tight tolerance, precision components and consumable cutting tools and instruments. The company manufactures parts for the automotive industry as well as specialized tools for the industrial, medical and dental industries.
In February 2019, ARCH acquired Fort Wayne, IN-based sister companies American Tool Service, a manufacturer of custom and standard carbide end mills, and OrthoGrind, a provider of grinding services for medical instruments including drills, taps, reamers and extractors. This transaction was the seventeenth acquisition ARCH has completed since the platform was formed in 2011. ARCH, led by CEO Eli Crotzer, is headquartered in the Detroit suburb of Livonia, MI (www.archglobalprecision.com).
“On behalf of the entire ARCH team I would like to thank the good folks at Strength Capital Partners and Main Post Partners for their support and partnership over the last several years,” said Mr. Crotzer. “Together we have achieved an extraordinary number of important milestones in building ARCH into a leading high precision metalworking platform.”
Strength Capital Partners invests in companies that have from $2 million to $20 million of EBITDA. Sectors of primary interest include manufacturing, distribution, infrastructure and industrial services. Since its founding in 2000, the firm has invested $450 million in equity across 23 platform companies and 40 add-on acquisitions. Strength Capital has offices in Birmingham, MI; Cincinnati, OH; and Denver, CO (www.strengthcapital.com).
“We are thrilled by this excellent outcome. Our investors will receive a very good return on their investment and the company is getting an ideal partner for the next leg of its incredible growth,” said Mark McCammon, a managing partner at Strength Capital Partners.
“We are grateful to the management team at ARCH who have led a significant transformation in ARCH’s business since our investment, and we wish them well under new ownership,” added Scott Bell, a partner at Main Post.
Main Post makes both control and non-control investments in consumer, business services and industrial companies with revenues of $25 million to $250 million and EBITDA of $5 million to $25 million. The firm was founded in April 2014 by managing partners Sean Honey and Jeffrey Mills, both former partners at Weston Presidio. Main Post is headquartered in San Francisco (www.mainpostpartners.com).
“We are delighted to be partnering with the ARCH management team to support its next phase of growth. ARCH is an industry-leading platform with a best-in-class management team. We will continue to invest heavily in the business to support organic growth and strategic acquisitions,” said Mike Denvir, a partner at The Jordan Company.
The Jordan Company is a middle-market private equity firm with over $6 billion of assets under management. The firm was founded in 1982 and is headquartered in New York with an additional office in Chicago (www.thejordancompany.com).
Lincoln International (www.lincolninternational.com) was the financial advisor to ARCH on this transaction.
© 2019 Private Equity Professional | April 2, 2019
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