Manufacturing Acquisitions in 2020

Edgewater Capital Partners completed an investment in Naprotek, LLC, an electronic manufacturing services provider specializing in quick-turn printed circuit board assembly for high-reliability applications. Headquartered in San Jose, California, Naprotek serves defense, space, medical, semiconductor, and specialty industrial markets, and plans to expand capabilities in partnership with Edgewater Capital.

Wynnchurch Capital, L.P. acquired Huntington Foam, LLC, a manufacturer of engineered molded foam products including EPS, EPP, and ARCEL. Following the acquisition, Huntington Foam will be объединed under one platform with Drew Foam Companies, Inc., an existing Wynnchurch portfolio company, to create a combined foam manufacturing platform.

CORE Industrial Partners’ portfolio company Incodema Holdings LLC acquired Majestic Metals, LLC, a precision sheet metal fabrication services provider. Majestic Metals will combine with Incodema, Newcut, and Dahlquist Machine to expand a nationwide precision manufacturing services platform aligned with Industry 4.0, adding capabilities such as automation, powder coating, and screen printing.

Funds advised by SK Capital Partners, L.P. purchased approximately 42.4 million shares (just under 40% of outstanding shares) of Venator Materials PLC from Huntsman Corporation for about $100 million. The agreement also provides SK Capital with a 30-month option to buy Huntsman’s remaining approximately 9.7 million Venator shares.

CORE Industrial Partners announced that its affiliate, Incodema Holdings LLC, has acquired Dahlquist Machine, Inc., a provider of high-speed precision machined components serving medical device, laboratory testing, and instrumentation OEMs. Dahlquist Machine, founded in 1969, is headquartered in Ham Lake, Minnesota and operates more than 30 CNC mills and lathes. CORE stated the acquisition will serve as a foundation to build a broader precision machining business within the Incodema platform.

Phoenix Stamping Group, a division of PHX Holdings, acquired Stampsource, a Charlotte, North Carolina-based metal stamping and fabrication manufacturer. The transaction is intended to expand Phoenix Stamping Group’s capacity and capabilities in metal stampings, fabrication, tool & die design, and kitting and assembly, with Stampsource integrated as Plant 04.

Northstar Capital invested in Vectair Systems, providing a one-stop debt facility and an equity co-investment. The financing was done in partnership with Convergent Capital to support Vectair’s owners, Arcspring and Oxbow Industries, in financing the deal.

Charger Investment Partners acquired a majority stake in Advanced Composite Products and Technology, Inc. (ACPT), with financial terms not disclosed. ACPT, headquartered in Huntington Beach, California, manufactures highly engineered composite structures serving defense, space, aviation, automotive, marine, industrial machinery, and subsea telecom applications.

Pedrollo Group, an Italy-headquartered electric water pump producer, acquired a 70% stake in Superior Pump (trading name of Michel Sales Inc.), a Minneapolis, Minnesota-based designer, manufacturer, and marketer of residential and commercial water pumps. The transaction gives Pedrollo a stronger foothold in the North American market and is described as its first acquisition outside of Italy.

Abracon LLC announced it has acquired Fox Electronics, a privately held supplier of frequency control products. The deal expands Abracon’s timing and frequency portfolio and adds the Fox Electronics brand to Abracon’s broader portfolio of frequency and timing brands.

Saothair Capital Partners, through a newly formed affiliate and in partnership with Ocean Avenue Capital Partners, acquired the business and assets of Arandell Corporation. The transaction was completed via a Chapter 11 Section 363 asset sale in which Saothair, backed by existing lender Farragut Capital Partners, served as the stalking-horse bidder.

ShoreMaster, LLC (which merged with HydroHoist, LLC in 2019) announced the acquisition of Neptune Boat Lifts, Inc., a salt-water boat lift manufacturer based in Fort Lauderdale, Florida. The deal expands ShoreMaster/HydroHoist’s waterfront equipment portfolio to cover both fresh- and salt-water marine environments across North America.

Carlson Private Capital Partners (CPC) completed two add-on acquisitions for its Lakeshirts/Blue84 platform: acquiring certain assets of Elite Fan Shop from Top of the World and making an investment in Yesterdays Sportswear. The Elite Fan Shop deal expands Lakeshirts/Blue84’s e-commerce presence, followed by the November 2020 investment in Yesterdays, a long-standing screen printing and embroidery services provider serving resort, surf, and wine markets along the California and Florida coasts.

Benford Capital Partners has sold ENMET, a manufacturer of hazardous gas detection equipment, to Sagepeak Capital. Benford Capital originally acquired ENMET in 2014 from the estate of founder Dr. Verne Brown and grew the business including an add-on acquisition during its ownership period.

SyBridge Technologies, a tooling and mold industry company established by Crestview Partners, has completed the acquisition of X-Cell Tool and Mold, Inc. X-Cell, based in Fairview, Pennsylvania, manufactures close-tolerance and multi-cavity plastic injection molds primarily for the medical industry. The deal expands SyBridge’s precision medical tooling capabilities and supports growth of a new medical tooling business unit within SyBridge.

Saline Lectronics, Inc. (SLI), a Michigan-based electronics solutions and contract manufacturing company, has been acquired by Emerald EMS, a portfolio company of New Water Capital. The deal expands Emerald EMS’s engineering resources and adds a stronger Midwest manufacturing footprint to its existing U.S. and international operations.

Gemini partnered with management to recapitalize Alexis Russell Jewelry, a direct-to-consumer bridal and fine jewelry designer and manufacturer based in Buffalo. Separately, Gemini portfolio company AOTCO acquired Plating for Electronics, a suburban Boston-based provider of anodizing, electroplating, and other metal finishing services.

Northlane Capital Partners’ portfolio company SmartWave Technologies acquired Multi-Tech Systems, Inc., a global supplier of industrial communication devices and services. The transaction creates an integrated, end-to-end IoT solutions provider, with the combined entity operating under the MultiTech brand. The new MultiTech will maintain its headquarters in Mounds View, Minnesota, with expanded design/engineering presence in Toronto and global sales offices.

PlasTech Machining Fabrication, Inc. has been acquired by DelCam Holdings and will become part of DelCam Manufacturing, a group of New England-based manufacturing and fabrication companies. The deal closed on November 6 with terms undisclosed, and DelCam will keep PlasTech’s operations at its Bow, New Hampshire site.

Waterlogic announced the acquisition of Tipperary Water's water cooler business, expanding its presence across the Republic of Ireland and Northern Ireland. The business was owned by C&C Group plc, and the deal supports Waterlogic's buy-and-build strategy backed by Castik Capital.

Polytek Development Corp., a specialty polymers manufacturer and a portfolio company of Arsenal Capital Partners, announced the acquisition of Incredible Solutions. Incredible Solutions, headquartered in Crystal River, Florida, supplies epoxy coating and casting systems for DIY and artistic applications and will join Polytek’s consumer brand portfolio while continuing to operate under its existing name.

Wisconsin River Partners (WRP), a Wausau-based private investment firm, acquired Lemke Industrial Machine effective September 30. Lemke Industrial Machine, founded in 1973 in Marathon, designs and manufactures specialized equipment for locks, dams, and movable bridges serving customers including the U.S. Army Corps of Engineers and utilities. Former owner Dave Pflieger will continue as president, and the company will retain its name and existing staff and management team.

H.I.G. Capital, through an affiliate, made a significant investment in Construction Forms, Inc. (Con Forms), a manufacturer of engineered abrasion-resistant piping systems and accessories for concrete and other industrial applications. H.I.G. is partnering with the existing family shareholders and the current management team to accelerate the company’s growth.

An affiliate of Balmoral Funds LLC signed a definitive agreement to purchase the expandable polystyrene (EPS) business of Flint Hills Resources in Peru, Illinois, in a management buyout led by Brad Crocker. Upon closing (expected in fall 2020), the business will operate under the trade name “Epsilyte.”

KICTeam acquired Teknipure, a Mesa, Arizona-based provider of specialty cleaning and contamination-control solutions for cleanrooms and controlled environments. The acquisition expands KICTeam’s offering across healthcare, biopharmaceutical, medical device, and advanced manufacturing end markets, with support from KICTeam’s owner Inverness Graham Investments.

Edgewater Growth Capital Partners IV’s portfolio company, Flow Control Holdings, LLC (FCH), acquired Top Line Process Equipment Company from its parent, Allegheny Bradford Corporation. Top Line supplies stainless steel sanitary process equipment and flow control components serving the food, beverage, and pharmaceutical markets, and the acquisition complements FCH’s existing Steel & O’Brien Manufacturing business.

River Associates Investments, LP has partnered with management to acquire Yale Cordage, Inc., a designer and manufacturer of high-performance synthetic rope and rope systems. Yale Cordage is headquartered in Saco, Maine and serves critical applications across industrial, utility, life safety, and marine end markets. The investment was funded from River Associates' seventh fund (River VII, L.P.), with financing provided by Northstar Capital and TD Bank.

Unifrax, backed by Clearlake Capital Group, has acquired Rex Materials Group, a manufacturer of engineered thermal components for high-temperature applications. The deal expands Unifrax’s portfolio and manufacturing capabilities in specialty materials; financial terms were not disclosed. Rex Materials is headquartered in Howell, Michigan.

Fralock, an engineering and manufacturing provider of specialty material solutions and a portfolio company of Arsenal Capital Partners, completed the acquisition of Career Technologies USA. The deal adds Career Technologies’ flexible and rigid-flex circuit and related assembly capabilities and expands Fralock’s processing and materials-integration offerings for end markets including medical devices, aerospace/defense, electronics, and industrial applications.

Creation Technologies, a global electronics manufacturing services (EMS) provider, announced that it has acquired Applied Technical Services (ATS). The deal expands Creation Technologies’ manufacturing footprint and capabilities, adding ATS facilities in Everett, Washington and Hermosillo, Mexico and strengthening its presence across North America.

Waterlogic announced the closing of an investment in which four institutional investors—BCI, Neuberger Berman, StepStone, and Skandia—acquired a significant minority stake in the company. The stake was acquired from funds managed by Castik Capital and the Waterlogic management team, providing Waterlogic with additional capital to support its growth ambitions.

Wynnchurch Capital, L.P. acquired the assets of Western Forge & Flange Co., a manufacturer of specialty forgings and flanges headquartered in Cleveland, Texas. Following the acquisition, Western will unite under one platform with Pennsylvania Machine Works (Penn Machine), an existing Wynnchurch portfolio company, to build a larger vertically integrated specialty forging and flange platform.

XS Power Batteries acquired Ioxus, Inc., a developer and manufacturer of ultracapacitors and energy storage products. Cascadia Capital acted as exclusive financial advisor to Ioxus and its investors on the transaction, which XS Power pursued to expand its product capabilities by integrating Ioxus’ ultracapacitor technology.

Kymera International closed its acquisition of 100% of the shares of Reading Alloys from Ametek Inc. Reading Alloys designs and produces master alloys, thermal barrier coatings, and titanium powders used in aerospace, defense, medical, and industrial markets. Kymera is owned by affiliates of Palladium Equity Partners, and the deal is described as Kymera’s third acquisition since Palladium’s 2018 investment; financial terms were not disclosed.

Argosy Private Equity exited its investment in Flow Dry Technology, Inc. as the company was acquired by Filtration Group, a Madison Industries company. Flow Dry, headquartered in Brookville, Ohio, designs and manufactures desiccant bags, value-added assemblies, and sealant solutions serving automotive, industrial, and healthcare end markets.

OpenGate Capital portfolio company Duraco Specialty Tapes acquired Infinity Tapes, a Massachusetts-based manufacturer of customized adhesive products, from a private seller. The deal expands Duraco’s product offering in transit packaging and industrial end markets; terms were not disclosed.

Ranch Creek Partners, LLC acquired Rainier Welding, Inc., a fabrication business specializing in fabricated steel structures for transportation and marine end markets. The sale provided an exit for Rainier Welding’s shareholders to support the founders’ retirement, with ACT Capital Advisors advising Rainier Welding on the transaction.

Lynx Equity Limited has acquired Arkas A/S, a Denmark-based manufacturer of bespoke wooden garage doors and single doors for commercial and residential applications. Arkas’ existing leadership team, including CEO Michael Dommerbye and former owner Keld Sund Nielsen, will remain involved post-acquisition to support continuity and growth.

Center Rock Capital Partners, LP recapitalized TAG Manufacturing, Inc., a designer and manufacturer of engineered attachments for construction and earth-moving equipment. The investment is Center Rock’s fifth platform investment from its inaugural fund, and Center Rock is partnering with TAG’s founders and owners, Gary and Terry Wilt, to support TAG’s growth plans.

MPE Partners (Morgenthaler Private Equity) announced the recapitalization of Teel Plastics, a technology-driven manufacturer specializing in plastic extrusion and injection molding. Teel Plastics, which had been owned by the Smith family for over 20 years, partnered with MPE and its management team to pursue significant growth opportunities.

One Equity Partners has completed the sale of PeroxyChem, a manufacturer of peroxygen chemistries, to Evonik Industries AG for $640 million (9.9x EBITDA before synergies). PeroxyChem is headquartered in Philadelphia and produces hydrogen peroxide and peracetic acid serving multiple industrial end markets.

CenterOak Partners’ portfolio company Cascade Windows acquired Amerimax Windows & Doors from OmniMax International. Amerimax manufactures vinyl windows and doors for the residential retrofit and replacement markets and operates facilities in Loveland, Colorado and Woodland, California. The deal expands Cascade’s product offering and adds production capacity to serve customers across the Western United States.

River Associates Investments acquired JBC Technologies, Inc., a precision flexible components engineering and die-cutting manufacturer. JBC Technologies serves OEM customers across appliance, HVAC, automotive, electronics, and industrial end markets and is headquartered in North Ridgeville, Ohio. Angle Advisors served as the exclusive investment banking advisor to JBC on the transaction.

CapitalWorks’ portfolio company Libra Industries acquired a contract manufacturing facility in Guaymas, Mexico, previously operated by Benchmark Electronics, Inc.; financial terms were not disclosed. The facility manufactures complex assemblies and sub-assemblies for customers across aerospace & defense, medical, semiconductor, and industrial end markets, expanding Libra’s manufacturing footprint and capabilities.

Blue Sea Capital, alongside Travis Parry, Twin Bridge Capital Partners, and GoldPoint Partners, made a significant investment in Innovative FlexPak, LLC to recapitalize the business and support continued growth. Founder and CEO Travis Parry will retain a significant ownership stake following the transaction.

Palladium Equity Partners acquired Accupac, Inc., a Pennsylvania-based provider of outsourced manufacturing and packaging solutions for personal care and beauty products. Accupac was purchased from J.H. Whitney Capital Partners, and the transaction terms were not disclosed.

MiddleGround Capital has completed the acquisition of EDSCO Fasteners, a manufacturer of mission-critical anchoring systems used in power transmission poles and other large steel structures. Headquartered in Denton, Texas, EDSCO serves utility transmission and distribution customers and also supplies the telecommunications and transportation markets.

CMTH acquired RLS Machining, Inc., Mill Creek Machining, Inc., and Murphy Machine Products, Inc., with all three transactions closing simultaneously on January 15, 2020. In conjunction with the acquisitions, CMTH was recapitalized to support additional acquisitions and continued growth, backed by White Wolf Capital. Financial terms were not disclosed.

An affiliate of Gemspring Capital completed the simultaneous acquisitions of Skyline Displays and TradeTec, a major Skyline independent dealer. The combined business will continue to operate under the Skyline brand, with Skyline’s management highlighting the partnership as support for the company’s next phase of growth.

Graycliff Partners LP announced the sale of HarperLove Holdings, LLC, a Charlotte, North Carolina-based provider of specialty chemicals and services for packaging manufacturers, to HBM Holdings Company. Graycliff had acquired HarperLove in 2014 and exited following operational improvements and growth initiatives that more than doubled profitability.