Hanover Partners Deals Solidscape to Strategic in Stratasys

West Coast PE shop Hanover Partners is letting go of an asset back East. The PE firm is selling its Solidscape Inc., a maker of 3D printer systems, to Stratasys, a similar manufacturer. The exit from Solidscape generated a 2.5x cash-on-cash return for lead investors Hanover Partners and Tuckerman Capital, during a nearly 5 year investment period. Hanover has offices in Portland, Ore., and San Francisco, Calif.


Hanover Partners, Inc. announced the sale of its portfolio company, Solidscape, Inc., a leading
manufacturer of 3D printer systems to Stratasys, (NASDAQ: SSYS), also a leading manufacturer of
3D printers and other additive manufacturing systems.
Headquartered in Merrimack, NH, Solidscape develops and produces innovative, proprietary 3D
printers and consumable model-making materials that incorporate the latest technologies to produce
high-quality physical models and prototypes for complex investment casting applications. Serving a
predominantly international customer base that includes jewelry, dental and other end-markets,
Solidscape is one of the largest manufacturers of 3D printer systems in the world. The exit from
Solidscape generated a 2.5x cash-on-cash return for lead investors Hanover Partners and Tuckerman
Capital, during a nearly 5 year investment period.
Based in San Francisco, California and Portland, Oregon, Hanover Partners acquired Solidscape in
June 2006 in partnership with Tuckerman Capital, II and III, LP. of Hanover, NH and Solidscape
Chairman and CEO David Bothwell. Commenting at the transaction’s closing, Andrew N. Ford, Co-
Founding Principal with Hanover Partners and former Solidscape Director, stated “We are extremely
pleased with this highly-successful outcome for all shareholders. It has been a pleasure partnering with
David Bothwell and Solidscape’s very talented management team. Solidscape is well-positioned to
achieve its next level of growth as part of another industry leader in Stratasys.”
“We appreciate the support of Hanover Partners over the last 5 years and are excited at both this
result and Solidscape’s future,” said Solidscape’s Chairman and CEO David Bothwell. “Stratasys is
regarded as one of the best run, most stable companies in the additive manufacturing industry and
brings a wealth of resources to the table with its financial strength, and management. The resources of
a strong company like Stratasys give Solidscape a better platform on which to grow our business.”
Additionally, Mike Varanka, President of Solidscape, commented “This agreement represents the
joining of two well-established leaders in additive manufacturing. We believe Stratasys and
Solidscape have valuable synergies, and the two companies will make a good partnership.”
Founded in 1994, Hanover Partners, Inc. is a private equity firm with offices in Portland, OR and San
Francisco, CA. Hanover and its institutional partners acquire majority positions in lower middlemarket
manufacturers with proprietary, highly engineered, standard products, as well as consumer
products and business services companies, with operating income of at least $1.5 million and
operating margins exceeding 10%. With the exit from Solidscape, Hanover’s current portfolio now
consists of 6 unique companies located across the United States.
Web site contact information: