Charlesbank acquires Tecomet from Genstar

Genstar Capital has sold Wilmington, Massachusetts-based Tecomet, a provider of high-precision manufacturing solutions for “complex, tight-tolerance” products. The buyer is Charlesbank Capital Partners. No financial terms were disclosed. William Blair & Company LLC served as lead financial adviser to Tecomet on the transaction while Weil, Gotshal &Manges acted as legal adviser.

PRESS RELEASE

SAN FRANCISCO, May 1, 2017 – Genstar Capital, a leading middle-market private equity firm focused on investments in targeted segments of the industrial technology, healthcare, financial services, and software industries, today announced the sale of Tecomet, a leading global provider of high-precision manufacturing solutions for complex, tight-tolerance products, to Charlesbank Capital Partners.

Tecomet provides highly-engineered, essential products to the medical and aerospace & defense industries. Its products include orthopedic implants, complex surgical instruments,trauma plates and photochemical etched products for medical device customers. For the aerospace & defense industry, Tecomet manufactures precision components used in missile and satellite propulsion systems, commercial aviation, vision systems, and infrared applications.

Founded in 1964 and based in Wilmington, Massachusetts, Tecomet was acquired by Genstar in December 2013.
During its slightly more than three-year ownership, Genstar partnered with management to complete three strategic acquisitions, expand the company’s senior leadership team, including the recruitment of current CEO Mark Kemp, and position the Company for strong organic growth going forward. Since 2013, the Company more than quadrupled in size and today offers a full breadth of products and value-added services globally to its customers.

Rob Rutledge, Managing Director of Genstar, said, “We are very pleased with Tecomet’s development, which was achieved via strong organic growth as we broadened and diversified the company’s capabilities to strengthen its value proposition in existing sectors of the medical and aerospace markets, in addition to expanding into new high-growth sectors. The successful integration of new acquisitions and partnerships also solidified the company’s leading position as an industry ‘innovation leader’ and Tecomet is well-positioned for continued long-term growth. We are pleased to retain a portion of our investment in the company and are excited to be part of the next chapter of Tecomet’s growth.”

Mark Kemp, Chief Executive Officer of Tecomet, said, “Genstar’s partnership with Tecomet and their involvement was invaluable as the company significantly repositioned itself into one of the world’s largest solutions providers to the medical device and aerospace & defense industries. With Genstar’s strategic support and financial resources, we meaningfully increased our product offering, expanded our geographic reach into Europe and Asia Pacific and commercialized our unique proprietary technologies. Working in concert with Genstar to implement a dynamic growth plan, Tecomet transformed into a stronger global competitor and there are numerous avenues to continue this exceptional track record of growth in the medical device and aerospace & defense end markets.”

In March of 2017, Genstar announced the closing of their new Fund VIII, which has $3.95 billion of committed capital. As part of their investment strategy, Genstar will continue seeking to invest in industry-leading companies that focus on manufacturing and distributing precision components for healthcare-focused end markets, and can benefit from the capital, network and resources Genstar provides to their companies. William Blair & Company, LLC acted as lead financial advisor to Tecomet and Weil, Gotshal &Manges acted as legal advisor.

About Genstar Capital
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for more than 25 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages funds with total capital commitments of approximately $9 billion and targets investments focused on targeted segments of the industrial technology, healthcare, financial services, and software industries.