Generation Growth Capital has sold Innovative Laser Technologies Inc to IPG Photonics Corporation for $40 million in cash. Imperial Capital provided financial advice to ILT on the transaction. Based in Minneapolis, ILT is a maker of of laser-based systems used to produce components mostly for the medical device sector.
MILWAUKEE, WI–(Marketwired – Jul 11, 2017) – Generation Growth Capital Fund II, LP (“GGC”), a Milwaukee-based private equity firm that invests in lower middle market companies, today announced the sale of Innovative Laser Technologies, Inc. (“ILT”) to IPG Photonics Corporation for $40 million cash. ILT’s expertise in producing high precision laser-based systems will accelerate IPG’s ability to deliver best-in-class standardized and turnkey systems solutions to the medical device industry and other key end user markets.
ILT is a Minneapolis, Minnesota-based designer and manufacturer of laser-based systems used to produce high-value, critical components primarily for the medical device industry. ILT provides its medical device OEM customers with a full suite of turnkey solutions, including customized machine engineering, laser application design, and integration services as well as full post-integration support. The company’s systems incorporate user-friendly control software (HMI-2200), which is qualified for medical device manufacturing. The HMI-2200 software enables seamless data collection and transfer between their customers’ manufacturing execution systems (MES) and their laser solutions. IPG has been a significant supplier of laser sources to ILT over the last several years. ILT has a reputation for quality, flexibility and innovation, with leading medical device OEMs and Fortune 500 companies as customers.
“ILT was a great investment for GGC and it was a pleasure working with their talented team to position the company for continued success. ILT represents another great example where we were able to help unlock a small company’s potential with GGC’s organizational development model,” said John Reinke, Managing Director of Generation Growth Capital, Inc.
“The sale of ILT represents our third portfolio company exit in the last several months,” said Cory Nettles, Managing Director of Generation Growth Capital, Inc. “We are very pleased with the overall performance of our Fund. These exits gave us significant momentum into the launch of our third fund, where we are continuing to see strong investment opportunities.”
Imperial Capital, LLC served as the exclusive financial advisor to ILT in the sale process.
“This transaction demonstrates Imperial Capital’s expertise across various industries and our Industrial group’s knowledge and extensive relationships at all levels of the Advanced Manufacturing sector,” said John E. Mack III, Managing Director and Co-Head of Investment Banking at Imperial Capital. New York-based Kevin Frisch, Managing Director, added, “This is a strong combination that should greatly enhance and expand ILT’s leading capabilities.”
About Generation Growth Capital Fund II, L.P.
Generation Growth Capital Fund II, LP is a Milwaukee-based private equity firm focusing on investments in small businesses to support ownership transition and growth opportunities. By partnering with solid management teams, GGC adopts a proactive, collaborative approach that builds the businesses in which they invest. Please visit http://www.generationgrowth.com for more information.