Avista Capital Partners has acquired Silicon Valley-based GCM, a manufacturer of components for the medical tech industry. The seller was May River Capital LLC. No financial terms were disclosed.
NEW YORK and CHICAGO, Sept. 3, 2019 /PRNewswire/ — Avista Capital Partners (“Avista”), a leading private equity firm focused on growth-oriented healthcare businesses, and May River Capital, LLC (“May River”), an investor in lower middle-market industrial growth businesses, today announced that Avista has acquired GCM Holding Corporation (“GCM” or the “Company”) from May River.
Based in Silicon Valley, GCM is a leading outsourced manufacturer of high-precision components and assemblies, providing an integrated platform of manufacturing solutions primarily for the MedTech industry, as well as select Diversified Industrial end markets. Within MedTech, the Company manufactures products for high-growth segments such as robotic assisted surgery, radiotherapy, diagnostic technology, and other vital equipment.
GCM maintains strong and long-tenured relationships with many market-leading OEMs who value the Company’s strong capabilities in highly engineered and difficult to manufacture precision components. The Company operates three manufacturing facilities in Silicon Valley, Chicago, and Dongguan, China.
Seamus Meagher, who has been with the Company for nearly two decades, will continue to serve as GCM’s President.
Mr. Meagher said: “Our focus at GCM is to provide leading OEMs with unique manufacturing capabilities for critical products executed with superior supply-chain performance. We are very grateful to the May River team and are thrilled to be joining forces with our new partner Avista. Together, we will drive a new chapter of growth for GCM that will continue to benefit our valued customers, talented employees, and other stakeholders.”
Rob Girardi, a Partner at Avista, said: “GCM represents a highly attractive opportunity to acquire a leading outsourced component manufacturer serving the growing MedTech industry, with deep customer relationships. We are excited to partner with Seamus and the entire GCM team as the Company makes significant investments to further position itself for robust growth.”
Dan Barlow, a Partner at May River Capital, said: “We are very proud that we were able to preserve and build upon the legacy of GCM’s founders, leading significant investments in human capital, systems and operational capacity during our ownership and positioning the Company well for the next stage of its journey. We are also proud that the business and team are in excellent hands going forward with Avista – a collaborative partner who recognizes and values the unique attributes and long-term sustainability of the Company.”
Avista’s legal advisor is Ropes & Gray LLP. GCM’s financial advisor is William Blair & Company. GCM’s legal advisor is Paul Hastings LLP.
About May River Capital
May River Capital is a Chicago-based private equity firm focused on investing in lower middle market industrial growth companies. May River Capital invests in high-quality industrial growth businesses, including precision manufacturing, engineered products, specialized industrial services, and value-added industrial distribution services.
Headquartered in Union City, California, with additional facilities in Chicago and Dongguan, China, GCM is a preferred supplier of manufacturing services to leading OEMs in the medical technology, industrial, and aerospace end markets. GCM offers precision machining, fabrication and integration services as core service solutions. The company also provides value-added services to its customers including new product introduction, supply chain management and value engineering services. For more information on GCM, please visit www.gogcm.com.
About Avista Capital Partners
Founded in 2005, Avista Capital is a leading New York-based private equity firm with over $6 billion invested in more than 35 growth-oriented healthcare businesses globally. Avista partners with businesses that feature strong management teams, stable cash flows and robust growth prospects – investing in the medical devices and technologies, pharmaceuticals, outsourced pharmaceutical services, distribution and consumer-driven healthcare sectors. Avista’s Operating Executives and Advisors are an integral part of the team, providing strategic insight, operational oversight and senior counsel, which helps drive growth and performance, while fostering sustainable businesses and creating long-term value for all stakeholders. For more information, visit www.avistacap.com.