Private equity backed Hi-Tech Holdings LLC has acquired a majority interest in GCM Medical, OEM Inc. and Global Contract Manufacturing (HK) Ltd.
Known collectively as GCM, the targets provide contract manufacturing services to equipment makers in the medical, industrial, transportation and aerospace sectors. Headquartered in Union City, California, GCM also boasts a manufacturing facility in Dongguan, China. Terms of the transaction were not disclosed.
Schiller Park, Illinois-based Hi-Tech manufactures machine components for the energy, medical, laboratory and industrial markets. Hi-Tech says the acquisition will help the company enter new markets.
Hi-Tech is owned by private equity firm May River Capital LLC, which is headquartered in Chicago. The firm was founded in 2012 and invests in partnership with family offices, mezzanine funds, co-invest funds, industry executives and high net-worth individuals. Hi-Tech was the firm's first investmentin July 2012. May River also backs Pride Engineering LLC, which it bought in March.
Cook M&A Advisory Services acted as Hi-Tech's financial adviser, and Paul Hastings LLP provided legal advice. Hi-Tech's existing lenders, Fifth Third Bank and Yukon Partners, provided senior and subordinated debt financing for the deal. May River and its co-investment partners, including Yukon Partners, Hi-Tech's management team and the target's management team, provided additional equity.