Esab Welding and Cutting

Esab Welding and Cutting has acquired Arc Machines Inc. (AMI), a maker of tungsten inert gas welding tools, from Marwit Capital. Financial terms of the deal were not disclosed.

AMI makes a variety of automated orbital welding equipment. The target’s portfolio of power supplies are made for all types of welding, including: fusion welding, groove welding, pipe welding, diameter welding, tube-to-tubesheet welding and other integrated systems. AMI has more than 3,000 client relationships across the power generation, semiconductor, oil and gas, aerospace and defense, pharmaceutical, food and beverage, and industrial construction sectors.

Esab, a subsidiary company of Colfax (NYSE: CFX), is also a global distributor of welding equipment to more than 8,700 clients across four continents. The buyer, founded in 1904, also makes gas control materials, welding consumables, filler metals, cutting equipment and related software.

Founded in 1962, Marwit Capital is a lower middle-market private investment firm based in Newport Beach, California. The firm has approximately $200 million in equity capital under management. Marwit Capital is currently investing out of the firm’s second institutional fund, MCP II.

Deals involving industrials and metal producers have been robust recently. Related deals include: Tech Air’s, backed by CI Capital Partners, completed deal to buy two welding suppliers; Berkshire Hathaway Inc.’s purchase of Wilhelm Schulz GmbH; Graycliff Partners’ backing sheet maker A-1 Machine Manufacturing Inc.; Liberty Hall Capital Partners’ acquisition of aerospace parts supplier ZTM Inc.; and LFM Capital’s investment in hydraulic clamps maker Vektek LLC.

Livingstone Partners served as financial adviser to Marwit Capital. Ice Miller LLP acted as legal counsel to AMI, while CohReznick LLP and RSM provided diligence services. Tucker Ellis LLP served as legal counsel to Esab and Cohen & Co. provided diligence services.

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