Watermill buys Quality Metalcraft

The Watermill Group has acquired Livonia, Michigan-based Quality Metalcraft Inc, a components provider for the transportation industries. No financial terms were disclosed.


Lexington, MA and Livonia, MI — July 1, 2015 — The Watermill Group, a strategy-driven private investment firm, today announced the acquisition of Quality Metalcraft, Inc. (QMC), a leading producer of engineered structural metal components and assemblies, providing advanced prototype, low-to-medium volume production and factory assist services to automotive and other specialty vehicle industries. As a go-to source for the world’s major manufacturers when quick, quality solutions are needed, QMC offers a range of capabilities, technologies and services to provide the optimal production process for any project.

“We have been impressed with QMC’s ability to deliver its products quickly and with exceptional service levels, without compromising quality or precision. Our vision is to help QMC strategically expand these capabilities to enable their customers to bring better designed, higher quality and safer vehicles to market,” stated Steven E. Karol, Managing Partner and Founder of The Watermill Group. “We are looking forward to bringing Watermill’s strategy-driven approach to QMC to help them realize their full potential.”

By providing a rare combination of advanced tooling, robotic flexible manufacturing lines and a recent investment in automated stamping, QMC has forged longstanding relationships with leading OEMs and Tier-1 suppliers in diverse industries. In the automotive industry, QMC has differentiated itself with a focus on prototyping and by providing low-to-medium volume production solutions for automakers’ niche, derivative, and limited-edition vehicles. QMC is uniquely suited to handle demanding prototyping and design challenges and is known for utilizing a wide range of technologies to ensure consistency from product to product even at prototype volumes. These innovative assets position QMC as one of the few suppliers capable of delivering full body-in-white prototypes used in crash testing and other safety and design evaluation programs.

“In the last decade, QMC has built the platform and infrastructure for dramatic growth, through strategic hires and focused investments in robotics, automation and engineering,” stated Kurt Saldana, CEO of QMC. “We’re eager to bolster that growth with Watermill’s support, and to continue to deliver the products and services that our market-leading customers value so greatly.”

Watermill advisor David Robinson will serve as the Chairman of QMC, and added: “Watermill will help QMC develop a long term strategy to deepen the company’s unparalleled commitment to service, while also driving operational improvements throughout the organization. Together, Watermill and QMC management will further strengthen the speed and quality of the quick turn work that is so highly valued by QMC’s leading OEM customers.”

Lenders in this transaction, which closed on June 30, 2015, are PNC Business Credit and Medley Capital. Goodwin Procter LLP provided legal counsel to Watermill. Quarton Partners represented the seller.

The QMC acquisition marks Watermill’s third transaction in less than two months, following the sale of Global Tubes to AMETEK, Inc. on May 8 and the acquisition of Mountain Molding, LLC by Watermill’s portfolio company, Tenere Inc., on May 4.

About The Watermill Group
The Watermill Group is a strategy-driven private investment firm that helps companies achieve their full potential through strategic transformation. For more than three decades, Watermill has been acquiring, operating and improving companies. Watermill looks for businesses in which it can apply a unique combination of strategic insight and management expertise to re-imagine their future and drive growth.

About QMC
Founded in 1964, Quality Metalcraft, Inc. (QMC) is a premium, niche provider of highly engineered, metal formed assemblies serving a wide range of transportation industries, including automotive, aerospace and defense, heavy trucking and construction equipment. The company specializes in advanced prototyping, in-house tooling, low-to-medium volume production, and factory assist services. Based in Livonia, Michigan, QMC is a highly technical organization with an adaptable, flexible manufacturing footprint.