MAY RIVER CAPITAL AND HI-TECH MANUFACTURING ACQUIRE GLOBAL CONTRACT MANUFACTURING
May 16, 2014
Hi-Tech Manufacturing, a portfolio company of May River Capital, announced it has acquired a majority interest in GCM Medical and OEM, Inc. and Global Contract Manufacturing (HK) Limited. Headquartered in Union City, California, with a second facility in Dongguan, China, GCM is a preferred supplier of contract manufacturing services to leading OEMs in the medical, industrial, transportation, and aerospace sectors. The combined entity will collectively be known as GCM (www.gogcm.com).
Based in Schiller Park, Illinois, Hi-Tech is a world class manufacturer of low-to-medium volume, mission-critical precision machined components and assemblies. Hi-Tech serves large, market leading customers in the energy, medical, scientific laboratory and industrial end markets. Together, Hi-Tech and GCM represent a growth-oriented precision machining platform with diverse contract manufacturing capabilities, innovative and market-leading customers, a world-class quality system, and over 220,000 total square feet of manufacturing space across three facilities in North America and China.
Hi-Tech, May River, and its co-investors acquired GCM in partnership with GCM’s President and co-owner, Seamus Meagher, as well as GCM’s co-founders, David Ko and Ned Milicevic. Mr. Meagher will continue to manage GCM as its President and report to Hi-Tech’s CEO, Tim Weaver. Messrs. Meagher, Ko and Milicevic will invest equity in the combined company alongside May River, its co- investors and Hi-Tech’s senior leadership team. Seamus Meagher, President of GCM, said “We ultimately decided to partner with Hi-Tech and May River as they share our vision for growing our company in diverse end markets for critical applications. They can provide the financial and strategic resources to accomplish our goals and provide our customers with world-class service, quality and manufacturing expertise. “
Tim Weaver said, “GCM represents a strong fit with Hi-Tech across all critical categories. We were immediately drawn to its talented and like-minded leadership team, the company’s strong quality systems, and excellent customer relationships.” Dan Barlow, May River Partner, commented “GCM has a demonstrated track record of consistent growth through cycles, which is a credit to the talented employees and management staff. We’re thrilled to have them as partners in growing our platform.”
Chip Grace, May River Partner, added “the addition of GCM greatly expands Hi-Tech’s contract manufacturing capabilities and diversifies the combined platform across customers and end-markets.” GCM offers precision machining, sheet metal fabrication, EDM, Swiss machining, furnace brazing, electro-mechanical assembly and clean room integration as core service solutions. GCM also provides value-added services to its customers including rapid-prototyping/new product introduction, supply chain management, and low cost region manufacturing through its wholly-owned subsidiary in Dongguan, China.
Cook M&A Advisory Services, Inc. served as financial advisor and Paul Hastings LLP served as legal counsel to Hi-Tech, May River and its investor group. Hi-Tech’s existing lenders, Fifth Third Bank and Yukon Partners, provided senior and subordinated debt financing in support of the acquisition. May River and its existing co-investment partners, including the Pohlad family and Yukon Partners, provided additional equity along with Hi-Tech’s senior leadership team, and Messrs. Meagher, Ko and Milicevic.
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
Headquartered in Union City, California, with a second facility in Dongguan, China, GCM is a preferred supplier of contract manufacturing services to leading OEMS in the medical, industrial, transportation, and aerospace sectors. GCM offers precision machining, sheet metal fabrication, EDM, Swiss machining, furnace brazing, electro-mechanical assembly and clean room integration as core service solutions. GCM also provides value-added services to its customers including rapid- prototyping/new product introduction, supply chain management, and low cost region manufacturing through its wholly-owned subsidiary in China. For more information on GCM, please visit www.gogcm.com
About Hi-Tech Manufacturing
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. May River Capital completed the acquisition of Hi-Tech in July 2012 in partnership with management, the Pohlad family, Yukon Partners, and other co-investors. For more information on Hi-Tech, please visit www.hi-tech-mfg.com
About the Pohlad family
The Pohlad family is comprised of diverse businesses that employ more than 2,500 across the U.S. Founded by Carl R. Pohlad in the 1950s and now managed by his three sons Jim, Bob and Bill, the more than 25 businesses operate in financial services/banking; commercial real estate; automotive sales; sports and entertainment, including the Minnesota Twins, a Major League Baseball franchise; and investments in privately held companies. In addition to their business interests, the Pohlad family has a long history of community involvement and charitable giving through the Pohlad Family Foundation and its operating businesses, giving more than $110 million since 1993. For more information on the Pohlad family, please visit www.pohladcompanies.com
About Yukon Partners
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