May River Capital, a Chicago-based private equity firm, has acquired Hi-Tech Manufacturing in partnership with the Pohlad family, Yukon Capital Partners, and other co-investors. Terms of the deal were not released.
May River Capital, LLC (“May River”), a Chicago-based private equity investment firm, announced the acquisition of Hi-Tech Manufacturing, LLC (“Hi-Tech” or the “Company”), in partnership with management, the Pohlad family (“Pohlad”), Yukon Capital Partners, L.P. (“Yukon”), and other co-investors. The transaction strengthens the foundation for Hi-Tech to continue growth in existing end-markets and to pursue selective acquisition opportunities.
Cleary Gull Inc. served as financial advisor to Hi-Tech and the selling shareholders in this transaction. Fifth Third Bank provided senior debt financing, while Yukon provided subordinated debt financing beyond its equity co-investment. Paul Hastings LLP served as legal counsel to May River and its investor group, while Foley & Lardner LLP served as counsel to the Company and the majority shareholders.
Tim Weaver, CEO of Hi-Tech said “We are excited to partner with May River, the Pohlad family and Yukon. Our new partners provide significant capital backing, strategic support and experience in the manufacturing sector, as well as within our core end-markets, that will help our company continue to grow and deliver world class quality, service and value to our customers.”
Dan Barlow, Partner of May River, said “Hi-Tech’s talented management team, strong customer relationships, demonstrated track record of growth, and commitment to operational excellence were central to our interest in the Company. Tim and his team relish competition and excel in it.” Chip Grace, also Partner of May River, added “May River is thrilled to be selected to partner with Hi-Tech’s management team in the acquisition. We share a common vision with management for the future of the Company and look forward to assisting Tim and the team in realizing Hi-Tech’s full potential in the years to come.”
Bill Dietz, Partner of Yukon, added “Hi-Tech is a leading and well-respected organization within the precision manufacturing industry. The Company’s management team has done an excellent job in managing and growing the business, and also establishing a blue-chip customer base. Yukon is excited to partner with management, May River and the Pohlad family, and we know that each will contribute to the Company’s future success.” Aaron Arnett, of the Pohlad family, said “The Pohlad family is delighted to partner with an exceptionally talented management team and an impressive, value-added sponsor and co-investor group.” Ron Miller, Managing Director of Cleary Gull Inc., said “This is an exciting transaction. With the support of May River, Yukon and the Pohlad family, Hi-Tech will have the resources to accelerate its growth.”
About Hi-Tech Manufacturing, LLC
Hi-Tech is a world class manufacturer of low-to-medium volume, mission-critical precision machined components and assemblies. Based near Chicago’s O’Hare airport, the Company serves large, market leading customers in the energy, medical equipment, scientific laboratory and industrial end markets. The Company is regarded as the preferred contract manufacturer for its customers’ most critical, tight tolerance and difficult-to-manufacture components. For more information on Hi-Tech, please visit www.hi-tech-mfg.com.
About May River Capital, LLC
May River is an independent private equity investment firm that seeks to invest its own capital, as well as partner with like-minded equity co-investors, in high quality businesses with excellent management teams and the potential for significant growth and value enhancement. May River was founded in January 2012 by three partners with over 40 years of principal investing experience. May River raises equity capital on a deal-by-deal basis from family offices, mezzanine funds, co-invest funds, industry executives, high net worth individuals, and other private equity firms. For more information on May River, please visit www.mayrivercapital.com.
About the Pohlad family
The Pohlad family has a history of successfully investing with great management teams to create outstanding companies and long term value. Since the 1950’s, Carl R. Pohlad and his family have invested in and built a diverse set of businesses encompassing banking, financial services, entertainment, commercial real estate, retail, automotive, energy, and technology industries, as well as ownership of Major League Baseball’s Minnesota Twins. Managed today by the second generation of the Pohlad family, their business interests continue to grow and diversify, while their companies remain united through common ownership, shared values, and commitment to customers and employees. For more information on the Pohlad family, please visit www.pohladcompanies.com.
About Yukon Capital Partners, L.P.
Yukon Partners is a mezzanine finance firm dedicated to serving middle market private equity sponsored business transactions with a typical investment range of $10 to $40 million in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, public-to-private buyouts, and refinancings.