Charlesbank Capital Partners has bought Tecomet, a producer of medical and aerospace parts, from Genstar Capital. The seller made several add-on acquisitions during Tecomet’s tenure under Genstar.
Tecomet, founded in 1964, manufactures metal materials that are essential to the medical and aerospace and defense industries. The Wilmington, Massachusetts-based target makes orthopedic implants, surgical instruments, and trauma plates for the healthcare customers. Tecomet also manufactures radar and vision systems for the aerospace and defense sector. Since being acquired by Genstar in December 2013, Tecomet has mas made three deals. Those acquisitions include the purchasing of Mountainside Medical and Symmetry Medical.
Charlesbank Capital is a middle-market firm with offices in Boston and New York. Founded in 1998, the PE firm targets the telecom & media, education, financial services, industrial, consumer, energy and healthcare sectors. Charlesbank Capital’s current portfolio consists of information technology outsourcing company Ensono and wholesale tire distributor American Tire Distributors.
Genstar is a San Francisco-based private equity firm that backs middle-market businesses with at least $10 million in Ebitda. Genstar has been quite active lately. In March, the firm closed a $3.95 billion middle-market fund and acquired clinical trial tech provider Bracket Global LLC. Genstar also backed electrical parts designer Power Products in March. Genstar focuses on the industrial technology, healthcare, software and financial services sectors.
Dealmaker interest for parts and metal manufacturers has been quite robust lately, and a dramatic uptick in manufacturing M&A is expected, according to Mergers & Acquisitions’ Mid-Market Pulse (MMP). Recent deals include: Littlejohn & Co LLC’s purchase of Maysteel Industries LLC; KPS Capital Partners LP’s buying steel abrasive manufacturer WHA Holding SAS from a group of investors; Orangewood Partners’ acquiring George Industries LLC; Liberty Hall Capital Partners’ purchasing aerospace parts supplier ZTM Inc.; and LFM Capital’s backing of hydraulic clamps maker Vektek LLC. Morrison Cohen LLP acted as legal counsel to Littlejohn.
Genstar has retained some equity in Tecomet as part of the deal. Financial terms of the transaction were not disclosed. William Blair & Co. LLC acted as financial adviser to Tecomet, while Weil Gotshal & Manges served as legal counsel.