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Engineered Materials Experience & Investment Thesis

The following are MCM’s experience, characteristics of attractive companies for investment, and reasons why we desire to invest in the engineered materials markets. 

MCM’s Engineered Materials Experience

We leverage our successful portfolio company experiences, current MCM board members’ engineered materials experience, and relationships with industry executives.

ANDOVER CORP – Acquired in 2018, andovercorp.com, based in Salem, NH, is a leading manufacturer of highly engineered, thin film optical coatings and filters for aerospace and defense, semiconductor, environmental, medical device, astronomy and instrumentation industries globally.

RMB logoRMB Products – Acquired in 2010, RMB Products, rmbproducts.comis a rotatonal molder, rotational liner, and additive manufacturer of engineered thermoplastic products used in niche applications. RMB utilizes a proprietary binding agent to adhere  thermoplastics to pipes, fittings, and other steel related products.

Dexmet logoDEXMET– Divested, Dexmet manufactures precision expanded metals, foils, and thermoplastics primarily used as lightning strike protection. Dexmet’s proprietary products are applied to the top adhesive layer of the composite aircraft.

Amrep logo

AMREP – Divested, Amrep manufactures and formulates spray adhesives and specialty chemicals including aerosols, liquids and lubricants, professional                                                                        cleaning and maintenance solutions, floor care, air care, grease and lubricants,                                                                  herbicides and disinfectants.

CVM logo

         CV Materials – Divested, CV Materials is a manufacturer of metallurgical powders,                    fluxes and porcelain enamel coatings.

 

advanced ceramics logoADVANCED CERAMICS – Divested, Advanced Ceramics is the world’s largest producer of boron nitride powders, shapes, and coatings, as well as other specialty ceramics.

MCM Senior Operating Partner Mr. Harry Shimp served in General Electric’s High Temperature Materials Division for 10 years and has operated a number of engineered materials companies.

MCM has relationships with Engineered Materials Executives who may act as integral members of future portfolio companies.

MCM professionals attend tradeshows to further our industry knowledge, including:

  • SPIE: Photonics West
  • MAPP: Manufacturers Association for Plastic Processors
  • CAMX: The Composites and Advanced Materials Expo
  • SAMPE: Society for the Advancement of Material and Process Engineering
  • NACENational Association of Corrosion Engineers

Seeking Companies with these Characteristics

  • Sales $15 million to $75 million
  • Proforma EBITDA $2 million to $10 million
  • Gross Margins: +30% for Manufacturers, or +20% for Value-Added Distributors
  • Products used in extreme temperatures and/or harsh environments
  • Solve complex or technically challenging issues, customized solutions
  • Technical expertise in design and engineering and /or production methods
  • Critical applications, high-performance, zero-failure reliability
  • Short-run or low to medium volume
  • Customers purchase based on value, not cost
  • End markets preferred, but not limited to: Aerospace, Automotive, Construction, Electronics, Industrial, Marine, Medical, Transportation

Favorable Industry Trends & Characteristics                           

  • The drive for fuel efficiency leads to increasingly lightweight specialty materials in the Aerospace and Automotive markets
  • Technological advances in the growing Medical market create a need for biocompatible specialty materials, sterile resistant adhesives, and surgical adhesives to name a few
  • The trend towards miniature electronic components spurs demand for engineered materials with rapid setting paces and extreme temperature resistance
  • Niche products with unique performance enhancing characteristics enjoy higher than average profit margins and higher customer loyalty