MCM Capital Partners is actively seeking investment opportunities in companies manufacturing and distributing engineered products and components.
Seeking Engineered Component Companies with these Attributes:
- Sales $10 million to $50 million
- EBITDA $2 million to $8 million
- Gross Margins: Manufacturers +30% or Value-Added Distributors +20%
- ISO 9001, ISO 13485, AS9100, and/or ITAR
- Low-volume, high-mix runs maintaining tight tolerance and high precision
- Serving corrosive, harsh, and/or critical environments
- Providing engineered and value-added solutions
- Attractive markets and applications include: motion control, fluid power/handling, engines, seals, valves, filters, fittings, medical components, measurement and control instruments
MCM’s Engineered Components Experience
Andover Corporation, andovercorp.com, acquired in 2018, is a leading manufacturer of highly engineered, custom components and filters utilizing thin film optical coatings for aerospace and defense, semiconductor, environmental, medical device, astronomy and instrumentation industries globally.
Performance Plastics, performanceplastics.com, acquired in 2015, is a niche, technical custom injection molder focused on demanding jobs utilizing high performance plastics manufacturing tight tolerance and high precision parts. It serves the Medical, Military & Defense, Aerospace, and Energy markets.
RMB Products, rmbproducts.com, acquired in 2010, is a rotational molder and laser sinterer of engineered products for niche applications serving Biopharma, Semiconductor, Aerospace, and Chemical Processing.
Dexmet, dexmet.com, divested, manufactures precision expanded metals, foils and thermoplastics with exacting mechanical and electrical properties to meet tight conductivity, weight and dimensional tolerances.
MicroGroup, microgroup.com, divested, is a value-added manufacturer and distributor of small diameter stainless steel and alloy tubing, providing precision metal fabrications to Medical and Life Science OEMs.
Aspex, aspex.com, divested, manufacturers proprietary analytical instruments for various industrial end markets. The Company has developed many application-specific software packages that automate certain highly repetitive, time-consuming tasks.
- MCM Senior Operating Partners Mr. Harry Shimp (Harry’s bio) and Mr. Greg Ott (Greg’s bio), both degreed mechanical engineers, have operated many highly technical component manufacturers.
- MCM Founder and Senior Managing Partner, Mr. Mark Mansour, has evaluated hundreds of engineered product and component companies and served on the boards of Performance Plastics, RMB Products, Dexmet, and MicroGroup.
- MCM has deep relationships with engineered component company executives, including owners of previous portfolio companies. MCM has close relationships with Swagelok executives, a $1 billion, privately-held, developer and manufacturer of highly engineered fluid system products.
- MCM professionals attend the following tradeshows:
Attractive Industry Trends & Characteristics
- Niche products with unique performance enhancing characteristics serving critical applications enjoy higher than average profit margins and greater customer loyalty
- Companies serving the Aerospace, Military & Defense, Power, Medical, and Biopharma markets are attractive due to their long-term growth potential
- Significant barriers to entry may exist in highly regulated markets
- Large breadth of services and vertically integrated companies will benefit from OEM’s reducing their supplier base