Manufacturing Acquisitions in 2016

Seattle-based private equity firm Westward Partners LLC has acquired OSW Equipment & Repair, a Snohomish, Washington manufacturer and repairer of Class 8 dump truck bodies and truck body assemblies. The investment will provide OSW with capital and operating expertise to expand manufacturing capacity and pursue growth into new markets across the West Coast.

Access Control Related Enterprises (ACRE), a portfolio company of LLR Partners, has acquired Communication Networks, LLC (ComNet), a Danbury, Connecticut-based manufacturer and distributor of fiber optic, copper and wireless video and data transmission equipment for security, transportation, utility and industrial markets. The acquisition is an add-on to the ACRE family intended to expand its communication technology offerings and create product synergies across access control, intrusion, video and cloud-based solutions; terms were not disclosed.

The Gorman-Rupp Company announced that its wholly-owned subsidiary, Patterson Pump Company, completed an asset purchase of the business of Morrison Pump Company of Hollywood, Florida. Terms were undisclosed; the acquisition is expected to integrate Morrison's product designs and staff into Patterson's manufacturing and international distribution network to accelerate growth in complementary niche markets.

Niteo Products, a portfolio company of Highlander Partners, acquired certain assets of AP Formulators (APF), a South Houston-based formulator of car wash chemicals, effective September 30. APF operations will continue at the South Houston facility, with founder Alan Palermo joining Niteo and remaining a significant equity holder; the deal is Niteo's first add-on under Highlander to expand its automotive appearance and car wash product offerings.

LongWater Opportunities, a Dallas-based private equity firm, has acquired Fox River Mills, a 116-year-old sock and handwear manufacturer in Osage, Iowa, from the Lessard family. Fox River will become a division of Standard Merchandising Company (a LongWater portfolio company), expanding the platform's U.S. manufacturing and private-label capabilities.

Bourns, Inc. has acquired certain assets and the ongoing operations of Transtek Magnetics, Inc., a Tucson-headquartered maker of custom transformers, inductors and coils with manufacturing in Dongguan, China. The acquisition expands Bourns' product offering into high-frequency and high-power magnetic components for end markets including automotive, solar power and consumer electronics.

Ferro Corporation acquired Electro-Science Laboratories, Inc. (ESL) for $75 million, expanding Ferro's electronic packaging materials capabilities and strengthening its Performance Colors and Glass platform. ESL, a privately held maker of thick-film pastes and ceramic tape systems headquartered in King of Prussia, Pennsylvania, has about 86 employees and generated an expected full-year 2016 adjusted EBITDA of $9.2 million.

Precise Mold & Plate has acquired the ErgoStation line of height-adjustable workstations and machine bases from Extol, Inc. The divestiture, which closed on October 27, 2016, allows Extol to focus on its core plastics-joining equipment business while continuing to purchase ErgoStation products from Precise; financial terms were not disclosed.

Akoya Capital Partners, in partnership with Marquette Capital Partners, Merion Investment Partners and Indigo's management, has acquired Indigo Signworks, a Fargo, North Dakota-based manufacturer of exterior and interior signage. The investor group plans to work with existing management to expand product lines, customer relationships and the company’s geographic footprint.

Argand Partners, a New York-based private equity firm, has acquired Sigma Electric Manufacturing, a Garner, North Carolina-headquartered maker of precision die-cast and sand-cast metal components with multiple manufacturing plants in India. Terms were not disclosed; the transaction is supported by a loan facility from Brightwood Capital Advisors and Argand intends to work with Sigma's management to expand the company’s market presence and geographic footprint.

Altaris Capital Partners announced a recapitalization of CSafe Global with an investor group that includes funds managed by Frazier Healthcare Partners; Altaris will retain a minority stake. CSafe Global, headquartered in Monroe, Ohio, is a provider of active and passive cold-chain packaging solutions serving the biopharmaceutical industry and will use the transaction to support continued growth and capability expansion.

Dexter, a subsidiary of DexKo Global, Inc., has acquired Quality / Century Holdings Corporation (doing business as Rockwell American), a manufacturer and distributor of trailer components based in Azle, Texas. The deal brings Rockwell American’s ~400 employees, five manufacturing sites and 16 distribution branches into the Dexter/DexKo platform, expanding product breadth and aftermarket distribution for trailer components.

Weller Equity Partners, a Louisville-based private equity firm, acquired KFI Seating, a Louisville manufacturer and distributor of institutional seating and table products, in a transaction that closed July 29, 2016. The deal provides liquidity to retiring and existing co-owners while partnering with management to support growth and organizational development.

INOF Asset Acquisition, LLC—a company formed by Inno-Flex management and Oxbow Industries, LLC—acquired the assets of Inno-Flex Corporation from Beryl Corporation in an asset sale. Inno-Flex, based in New Hope, Minnesota, manufactures decorative and functional interface products (including membrane switches and in-mold labeling) and has 97 employees; senior debt was provided by MidCountry Bank and the purchase price was not disclosed.

Union Partners I LLC has acquired Berg Steel Corporation, a Royal Oak, Michigan-based processor and distributor of carbon steel coil products. Angle Advisors served as the exclusive investment banking advisor to Berg Steel; the company operates state-of-the-art slitting capabilities and employs approximately 40 people.

Dallas-based private equity firm Elm Creek Partners, with majority equity provided by Henrikson & Graul Capital Partners (HGCP), has acquired Liberty Paper Products, a Phoenix-based specialty converter and distributor of thermal paper. Founder and CEO Mike Rapier remains in his role and rolled a portion of his proceeds into the new ownership; lenders on the transaction included Marquette Business Credit and subordinated debt from Medallion Capital.

MTS Systems Corporation has completed the acquisition of 100% of PCB Group, Inc. for $580 million. PCB, a Depew, New York–based manufacturer of piezoelectric sensors and transducers with ~1,168 employees, expands MTS's sensors portfolio and creates cross-selling and margin-improvement opportunities across MTS's Test and Sensors segments.

Valero Capital Partners has acquired Vacuum Instruments Corporation (VIC), a Ronkonkoma, New York–based manufacturer of tracer-gas and air leak detection products, systems and services. The deal coincides with the announced retirements of long-time leaders Fritz Ewing and John Schreiner; Valero-appointed management (including CEO Jeff Plante) will lead the company as Vacuum Instruments Corporation, LLC to continue manufacturing and expand offerings.

Sage Capital led an investor group alongside nine members of Bulk Tank's management team (including founder Dave Sisk) to acquire Bulk Tank Inc, a Park Hills, Missouri-based manufacturer of valves and flow-control components for pneumatic dry-bulk trailers and railcars. Operations will remain in Park Hills with all employees retained; founder Dave Sisk will stay on in a senior executive role and serve as a director while Andy Boyer will lead the company and Pneumatic Tank Services LLC will be managed separately by Brent Kemp.

Wincove Private Holdings, together with Bluff Manufacturing management, acquired Bluff Manufacturing, a Fort Worth-based maker of yard ramps, dock boards and warehouse safety equipment, from Hadley Capital. Cleary Gull acted as exclusive financial advisor to Bluff Manufacturing on the transaction; Wincove said it plans to support Bluff’s growth both organically and through acquisitions.

Dalton Corporation, a Warsaw, Indiana foundry specializing in complex gray iron castings, was sold by Neenah Enterprises to private equity firms Beckner Clevy Partners and Speyside Equity. Cleary Gull acted as Neenah Enterprises' exclusive financial advisor; the buyers intend to leverage their industrial expertise to support Dalton's operational growth.

Kawakin Holdings Company (TSE: 5614), a Japanese manufacturer of materials and construction products, has acquired 100% of Dynamic Isolation Systems (DIS), a US-based maker of engineered seismic isolation components. Cascadia Capital served as exclusive financial advisor to DIS; the majority shareholder Tom Foley sold the business in the transaction.

The Riverside Company has acquired Momentum Group, a distributor of commercial textiles headquartered in Irvine, California, from Norwest Equity Partners. Momentum Group (~150 employees) supplies fabrics to commercial furniture manufacturers and design firms across office, hospitality, education and healthcare markets; Maranon Capital provided mezzanine financing and co-invested in the transaction.

Milestone AV Technologies, a portfolio company majority owned by Pritzker Group (with Duchossois Capital Management as a co-investor), has acquired Vaddio, a Minnetonka-based manufacturer of PTZ cameras and professional AV solutions. The undisclosed-value deal brings Vaddio into Milestone’s family of AV brands and is intended to expand Milestone’s product and service offerings while keeping Vaddio’s operations in Minnetonka, Minnesota.

Leggett & Platt Incorporated has acquired Pegasus Manufacturing, Inc., a Middletown, Connecticut-based aerospace manufacturer that produces fabricated tubes, pipe assemblies, precision-machined parts and gears for commercial and military aircraft engines and land-based turbines. Terms were not disclosed; Carter Morse & Mathias served as financial advisor to Leggett & Platt. The acquisition expands Leggett & Platt's Aerospace Products Group capabilities and strengthens its product and market presence in aerospace components.

United Flexible, a portfolio company of Arlington Capital Partners, has acquired Fulton Bellows, a Knoxville-based manufacturer of precision bellows and thin-walled metal components. The deal expands United Flexible's engineered fluid and gas transfer product offering by adding Fulton's hydroforming and specialized bellows capabilities, supporting organic and acquisition-driven growth.

II‑VI Incorporated agreed to acquire EpiWorks, Inc. (approximately $43.0M, including a $6.0M earn‑out) and ANADIGICS, Inc. (approximately $61.0M) for a combined cash consideration of $110M to expand its epitaxial growth and 6‑inch GaAs wafer fabrication capacity. The deals are intended to accelerate II‑VI's VCSEL and semiconductor laser platform scale and will be financed with cash and borrowings; both transactions were expected to close within about 60 days.

Capital For Business and Sage Capital completed an asset purchase of DIT‑MCO International Corporation, creating a newly formed DIT‑MCO International LLC and retaining existing management and staff. The acquisition, driven in part by family succession goals following long-time owner F. L. Thompson's passing and the retirement of Richard Thompson, will keep operations in Kansas City under new private equity ownership.

Potentia Holdings, LLC has acquired MacDiarmid Machine Corporation, a Newburyport, Massachusetts-based CNC and precision machining business, to join Potentia’s group of metal products manufacturing companies. Founder Scott MacDiarmid will stay through a transition period before retiring; Potentia plans to preserve the business and expand its market reach.