December 19, 2012 — Private equity firm May River Capital, an investor in lower middle-market industrial growth businesses, has completed its acquisition of Hi-Tech Manufacturing, LLC (“Hi-Tech”) (www.hi-tech-mfg.com). Terms were not disclosed.
May River Capital announced the acquisition in partnership with management, the Pohlad family, Yukon Capital Partners, L.P., and other co-investors. The transaction strengthens the foundation for Hi-Tech to continue growth in existing end-markets and to pursue selective acquisition opportunities. Cleary Gull Inc. served as financial advisor to Hi-Tech and the selling shareholders in this transaction. Fifth Third Bank provided senior debt financing, while Yukon provided subordinated debt financing beyond its equity co-investment.
Dan Barlow, Partner of May River, said “Hi-Tech’s talented management team, strong customer relationships, demonstrated track record of growth, and commitment to operational excellence were central to our interest in the Company.” Chip Grace, also Partner of May River, added “May River is thrilled to be selected to partner with Hi-Tech’s management team in the acquisition. We share a common vision with management for the future of the Company and look forward to assisting the team in realizing Hi-Tech’s full potential in the years to come.”
Bill Dietz, Partner of Yukon, added “Hi-Tech is a leading and well-respected organization within the precision manufacturing industry. The Company’s management team has done an excellent job in managing and growing the business, and also establishing a blue-chip customer base. Yukon is excited to partner with management, May River and the Pohlad family, and we know that each will contribute to the Company’s future success.” Aaron Arnett, of the Pohlad family, said “The Pohlad family is delighted to partner with an exceptionally talented management team and an impressive, value-added sponsor and co-investor group.” Ron Miller, Managing Director of Cleary Gull Inc., said “This is an exciting transaction. With the support of May River, Yukon and the Pohlad family, Hi-Tech will have the resources to accelerate its growth.”
ABOUT MAY RIVER CAPITAL
May River Capital is a Chicago-based private equity firm focused on investing in lower middle-market industrial growth companies. May River invests in high-quality industrial growth businesses, including precision manufacturing, engineered products, specialized industrial services, and value-added industrial distribution businesses. For more information, please visit www.mayrivercapital.com.
ABOUT HI-TECH MANUFACTURING, LLC
Hi-Tech is a world class manufacturer of low-to-medium volume, mission critical precision machined components and assemblies. Based near Chicago’s O’Hare airport, the Company serves large, market leading customers in the energy, medical equipment, scientific laboratory and industrial end markets. The Company is regarded as the preferred contract manufacturer for its customers’ most critical, tight tolerance and difficult-to-manufacture components. For more information on Hi-Tech, please visit www.hi-tech-mfg.com.
ABOUT THE POHLAD FAMILY
The Pohlad family has a history of successfully investing with great management teams to create outstanding companies and long term value. Since the 1950’s, Carl R. Pohlad and his family have invested in and built a diverse set of businesses encompassing banking, financial services, entertainment, commercial real estate, retail, automotive, energy, and technology industries, as well as ownership of Major League Baseball’s Minnesota Twins. Managed today by the second generation of the Pohlad family, their business interests continue to grow and diversify, while their companies remain united through common ownership, shared values, and commitment to customers and employees. For more information on the Pohlad family, please visit www.pohladcompanies.com.
ABOUT YUKON CAPITAL PARTNERS, L.P.
Yukon Partners is a mezzanine finance firm dedicated to serving middle market private equity sponsored business transactions with a typical investment range of $10 to $40 million in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, public-to-private buyouts, and refinancings. For more information on Yukon Partners, please visit www.yukonpartners.com.