Add-on Acquisition • Manufacturing

MW Components Acquires Sussex Wire

On April 13, 2019, MW Components acquired manufacturer Sussex Wire from Argosy Private Equity and NewSpring Capital

Acquisition Context
  • This is MW Components’ 9th transaction in the Manufacturing sector.
  • This is MW Components’ 18th transaction in the United States.
  • This is MW Components’ 1st transaction in Pennsylvania.

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M&A Deal Summary

Date April 13, 2019
Target Sussex Wire
Sector Manufacturing
Buyer(s) MW Components
Sellers(s) Argosy Private Equity
NewSpring Capital
Deal Type Add-on Acquisition

Target Company

Sussex Wire

Easton, Pennsylvania, United States
Sussex Wire, Inc. specializes in the design, manufacturing, and distribution of highly-engineered, specialty metal parts and components utilizing cold-forming technology. Sussex Wire was founded in 1974 and is based in Easton, Pennsylvania.
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Buyer Overview 1

Buyer

MW Components

Charlotte, North Carolina, United States

Category Company
Sector Manufacturing
DESCRIPTION

MW Components is a manufacturer of products that make machines, engines, and complex sub-assemblies work harder, better, longer, and faster. Its full line of industrial springs, fasteners, machined parts, and flat-stamped spring-related products are engineered for peak performance and made from the world's best materials. MW Components is based in Charlotte, North Carolina.


Deal Context for Buyer #
Overall 18 of 23
Sector: Manufacturing 9 of 13
Type: Add-on Acquisition 18 of 22
State: Pennsylvania 1 of 1
Country: United States 18 of 23
Year: 2019 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-08-02 Ameriflex

Corona, California, United States

Ameriflex, Inc. is a manufacturer of precision formed metal bellows and bellows assemblies used in applications supporting the semiconductor, microelectronics, and aerospace industries. Located in Corona, CA, Ameriflex was founded in 1981 to supply bellows into the fledgling semiconductor industry. The company has maintained its semiconductor industry focus while diversifying into industrial equipment and aerospace.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-24 NN - Life Sciences Division

Johnson City, Tennessee, United States

NN, Inc. - Life Sciences Division design and manufacture implants, surgical instrumentation, single-use disposable devices, and assemblies on a global basis.

Buy $825M

Seller Profiles 2

SELLER

Argosy Private Equity

Wayne, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 575M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Argosy Private Equity is the private equity arm of Argosy Capital, an asset management firm. Argosy Private Equity provides both debt and equity capital to lower middle-market companies located throughout the US. Argosy focuses on growth companies with experienced management teams and revenues between $15 and $100 million and EBITDA of $3 to $9 million. Argosy looks to invest $5 - $20 million per transaction. Specific areas of interest include manufacturing, business services, franchising and Value added distributions. The Firm will consider a variety of transaction types, including MBO’s, recapitalizations, growth equity and acquisitions. Argosy was formed in 1990 and is based in Wayne, Pennsylvania.


Deal Context for Seller #
Overall 36 of 55
Sector: Manufacturing 6 of 7
Type: Add-on Acquisition 24 of 39
State: Pennsylvania 11 of 17
Country: United States 36 of 55
Year: 2019 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-02-26 Walpole Outdoors

Norwood, Massachusetts, United States

Walpole Outdoors is a manufacturer, direct-to-consumer (“D2C”) marketer, and installer of high-end outdoor products. Walpole Outdoors was founded in 1933 and is based in Norwood, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-20 Groome Industrial Service Group

Denville, New Jersey, United States

Groome Industrial Service Group is a provider of industrial cleaning and maintenance services to customers in the natural gas-fired power generation, refinery, manufacturing, construction, marine, and aviation industries. Groome Industrial Service Group was founded in 1969 and is based in Denville, New Jersey.

Buy -
SELLER

NewSpring Capital

Radnor, Pennsylvania, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
PE ASSETS 3.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NewSpring Capital is a private investment firm focused on growth companies in the Mid-Atlantic US. The Firm can provide both growth equity and junior capital to prospective companies. NewSpring's target investment size for both mezzanine and equity financing is $2 to $5 million, although for new ventures, the Firm can commit up to $10 million. Sectors of interest include specialty manufacturing, technology, business services, information technology, life science, healthcare services, and medical devices. NewSpring Capital was formed in 1999 and is based in Radnor, Pennsylvania with an additional office in Short Hills, New Jersey.


Deal Context for Seller #
Overall 53 of 92
Sector: Manufacturing 4 of 7
Type: Add-on Acquisition 34 of 52
State: Pennsylvania 22 of 25
Country: United States 52 of 91
Year: 2019 2 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-08 SpeedConnect

Frankenmuth, Michigan, United States

SpeedConnect, Inc. is a privately-held Broadband Wireless Access (BWA) provider. Today, SpeedConnect is one of the nation’s largest rural wireless broadband Internet providers which serves over 20,000 residential and commercial wireless broadband Internet customers in Arizona, Idaho, Illinois, Iowa, Michigan, Montana, Nebraska, South Dakota, and Texas.

Sell $2M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-15 Paragon Bioservices

Baltimore, Maryland, United States

Paragon Bioservices, Inc. is a contract development and manufacturing organization (CDMO) whose focus is the development and manufacturing of cutting-edge biopharmaceuticals. Paragon aims to build strong client partnerships with the world’s best biotech and pharma companies, focusing on transformative technologies, including gene therapies (AAV), next-generation vaccines, oncology immunotherapies (oncolytic viruses), and other complex biologics. Paragon Bioservices, Inc. was founded in 1990 and is based in Baltimore, Maryland.

Sell $1.2B