Inservco brings acquisition’s operations to LaGrange

Published: January 24, 2011 | Topics: Portfolio News

Move to increase circuit board-maker’s staff by 40

Inservco Inc., a LaGrange company that makes printed circuit boards, has acquired a New Jersey concern to expand its East Coast presence, and as a result, the company plans to add 40 jobs at its Lorain County headquarters.

Inservco, which is part of private equity firm MCM Capital Partners in Beachwood, is moving the operations of Test Technology Manufacturing Services Inc. to LaGrange from Marlton, N.J., said Dennis Docherty, Inservco chairman and CEO. Inservco did not disclose terms of the transaction.

Mr. Docherty said Inservco will expand its LaGrange plant to 40,000 square feet from 27,000 square feet to accommodate the larger operation, including Test Technology production lines. He estimated the expansion would cost about $600,000.

Inservco employs 100 and makes printed circuit boards and box build assemblies for medical and industrial customers, including medical equipment maker Philips Medical Systems Inc. of Highland Heights. Mr. Docherty said while Test Technology produces similar products to Inservco, the New Jersey company has a more diverse customer base in Mid-Atlantic and Northeastern states in fields such as telecommunications lire detection, bar code scanning, transportation and defense.

Inservco will keep a small sales team in Marlton because “we want to retain a presence in New Jersey,” Mr. Docherty said.

Inservco will use its automated capabilities to speed products to Test Technology customers more quickly. Two months ago, Inservco invested $1.5 million in a surfacemount production line that installs 50,000 circuit board components per hour, compared with old technology that placed 17,000 component parts an hour.

James Poffenberger, managing director and principal of MCM Capital Partners, said it was Inservco’s commitment to productivity and lean manufacturing processes that made Test Technology a good fit.

Both Messrs. Poffenberger and Docherty expect 2007 sales at Inservco to increase at least 30% to $35 million once the Test Technology operation is fully integrated at Inservco’s plant, 1 ID Commerce Drive in LaGrange.

Test Technology had $12 million in sales last year.

MCM Capital is a micro-cap private equity firm that targets companies with annual sales of $15 million to $75 million.

Capital ideas,
delivered to your inbox

Recent Posts
View All

June 2019 – Torsion Group Corp (“TGC”) is a manufacturer and distributor of garage door parts and accessories. For the past few years, one of TGC’s strategic initiatives has been vertically integrating to bring more manufacturing inhouse, giving the company more control over its supply chain while enhancing profitability. To that end, TGC purchased a...

An unexpected economic downturn can alter a business owner's exit planning timeline. Fortunately, a multitude of options exist to bridge valuation gaps when they arise.

Determining the value of a business is far from a straightforward discounted cash flow calculation. Regardless of whether a business owner relies on themselves, their management team, or a third party appraiser for conducting a business valuation, the exercise requires a thorough examination of the company's balance sheet, customer base, growth prospects, intangible assets, and...

MCM recently launched an interview series designed to help business owners better navigate the M&A process. Ever few weeks, our team will be interviewing business owners, capital investors, lawyers, accounting, tax, and other M&A professionals involved in buying and selling privately owned businesses. The series will cover topics ranging from business owner advice and experiences...