PE-Backed H-D Advanced Manufacturing Acquires Edmonton’s iMech

Two Edmonton, Alberta-based companies, Innovative Mechanical Solutions Ltd. and Leading Edge Heat Treatment Ltd., together known as iMech, have merged with H-D Advanced Manufacturing Co., which was formed in December 2012 by U.S. private equity firms The Riverside Company, Hicks Equity Partners and Weinberg Capital Group. Financial terms were not disclosed. iMech manufactures custom bearings for the drilling motor industry. H-D was established to acquire manufacturers of heavy-duty, precision engineered parts.

PRESS RELEASE

August 01, 2013

H-D Advanced Manufacturing Joins Forces with Innovative Mechanical Solutions

Riverside and Hicks Equity Partners expand precision manufacturing components platform

DALLAS & CLEVELAND–(BUSINESS WIRE)–Innovative Mechanical Solutions Ltd. and Leading Edge Heat Treatment Ltd. (collectively, iMech) have merged into H-D Advanced Manufacturing Company (H-D). H-D was formed in December 2012 by a partnership among The Riverside Company, Hicks Equity Partners (HEP) and Weinberg Capital Group to invest in manufacturers of heavy-duty, precision engineered parts. H-D is led by Chris DiSantis, its CEO, and Dale Mikus, its CFO.

“I am also excited to be a shareholder in H-D, and I look forward to helping H-D build a first class manufacturing company.”

Based in Edmonton, Alberta, iMech is an industry leader in the engineering, design and manufacture of custom bearings for the directional drilling motor industry. iMech custom-designs its thrust bearing assemblies to provide customers with industry-leading performance characteristics and durability. As a result, its customer base includes some of the world’s leading diversified oilfield service companies and directional drilling companies. The company operates a manufacturing and heat-treatment plant in Edmonton, and has a warehouse and distribution center in Houston, Texas. iMech will continue to be led by founder and President, Wayne Horley, and will be operated as an independent division within H-D.

iMech is H-D’s second division, joining Overton Chicago Gear Corporation, a manufacturer of large, high-precision gears and gearboxes that are designed to meet a wide range of requirements for the most challenging applications in the oil and gas, minerals and mining, rail, wind energy, power generation and infrastructure industries.

“iMech is a great fit for H-D,” said CEO, Chris DiSantis. “We’re thrilled to be adding a new business line, exceptionally talented people and a tremendous customer base through this new partnership with iMech. iMech’s custom bearings are specifically designed and manufactured for the harsh environments in which they are used, resulting in a better bearing with a longer life.”

“We ultimately decided to partner with H-D as they share our vision for growing iMech and can provide the financial, professional and operating resources required to accomplish our goals and provide our customers with the best bearing products in the world,” said Horley. “I am also excited to be a shareholder in H-D, and I look forward to helping H-D build a first class manufacturing company.”

Tom Hicks, CEO of HEP added, “Wayne Horley and his team at iMech have distinguished themselves by producing high quality products and being exceptionally responsive to customers. We are thrilled to welcome them to the H-D team, and we intend to support them with the resources required to make iMech an even more valuable partner to its customers.”

“We are delighted to add a proven and promising company like iMech to H-D,” said Riverside Partner, Tim Gosline. “H-D was established to partner with outstanding industrial companies like iMech, and we believe that iMech will be better positioned to serve its customers as part of the H-D family of companies.”

H-D Advanced Manufacturing is actively seeking add-on opportunities in gearing, bearings and other heavy duty, precision-engineered component sectors.

H-D Advanced Manufacturing Company

H-D Advanced Manufacturing Company seeks to acquire operating companies in the severe duty, high-precision manufacturing sector targeting “mission critical” products and applications. H-D is led by Chris DiSantis, the former CEO of Latrobe Specialty Metals and the former President and COO of Hawk Corporation, and Dale Mikus, the former CFO of Latrobe Specialty Metals. H-D strives to enable its customers to be leaders in their respective industries by providing world class products, excellent customer service, highly responsive lead times and efficient manufacturing operations.

The Riverside Company

The Riverside Company is a global private equity firm focused on acquiring growing businesses valued at up to $250 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 310 transactions. The firm’s international portfolio includes more than 75 companies. (http://www.riversidecompany.com or http://www.riversideeurope.com)

Hicks Equity Partners

Hicks Equity Partners (HEP) is the private equity arm for Hicks Holdings LLC, a holding company for the Thomas O. Hicks family’s assets. With 35 years of private equity experience, Mr. Hicks pioneered the “buy and build” strategy of investing and founded Hicks Muse Tate & Furst, which raised more than $12 billion of private equity across six funds and completed over $50 billion of leveraged acquisitions. HEP looks for established companies with proven track records, strong free cash flow characteristics, a strong competitive industry position and an experienced management team looking to partner with long-term capital.

Weinberg Capital Group

Weinberg Capital Group is a Cleveland, Ohio based family office that specializes in acquiring well-positioned middle-market companies. The group has an established track record of success in the ownership and growth of global manufacturing enterprises.

Contacts

The Riverside Company
Graham Hearns, 216-535-2221
Managing Director of Global Marketing and Communications
ghearns@riversidecompany.com
or
Hicks Equity Partners
Kekst and Company
Mark Semer, 212-521-4800
mark-semer@kekst.com

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