Vander-Bend Manufacturing, a portfolio company of Aterian Investment Partners, has acquired TMK Manufacturing.
Vander-Bend is a prototyper, developer, manufacturer, and assembler of large-format metal products used primarily in the medical technology sector. The company, led by CEO Greg Biggs, was founded in 1979 and is headquartered in San Jose, California with more than 400,000 sq. ft. of manufacturing space. Arterian acquired Vander-Bend in since May 2018.
Like Vander-Bend, TMK also provides prototyping and precision machining services to medical technology companies as well as OEMs operating in other sectors. TMK specializes in small format precision components with capabilities in vertical machining, 5-axis machining, and both wire and sinker electrical discharge machining. TMK is based in Santa Clara, California.
The acquisition of TMK adds small format machining expertise to Vander-Bend and further entrenches Vander-Bend into its core medical technology markets, particularly the robotic surgery market.
“We are excited for Vander-Bend to add TMK to its growing medical technology-focused platform,” said Brandon Bethea, co-founder and partner at Aterian. “Vander-Bend’s ability to integrate strategic, synergistic acquisitions is a truly impressive complementary skillset to go along with demonstrated experience in executing flawlessly on organic transformational growth opportunities.”
Aterian invests up to $50 million in small-to-middle market businesses with $25 million to $500 million in revenues that are underperforming, turnarounds or otherwise unique situations. Aterian held a final closing of Aterian Investment Partners III LP with $350 million of committed capital in July 2018. Aterian’s earlier fund closed in December 2013 with $257 million of capital commitments.
“This transaction supports our track record of acquiring complementary family/founder businesses in a very fragmented outsourced medical technology manufacturing market,” said Daniel Phan, a principal at Aterian. “We look forward to working on post-close initiatives across the business.”
The buy of TMK is the second medical technology add-on acquisition made by Vander-Bend. In January 2019, the company acquired J.L. Haley Enterprises, a California-based fabricator of metal parts used primarily in medical device applications.
Aterian was founded in 2009 by Mr. Bethea, Michael Fieldstone and Christopher Thomas and is based in New York City.
Private Equity Professional | May 1, 2020