Inservco brings acquisition’s operations to LaGrange
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.