Consolidation • Manufacturing

Aldine Capital Partners and Capital For Business Acquire H3

On June 24, 2019, mezzanine finance firm Aldine Capital Partners and private equity firm Capital For Business acquired manufacturer H3

Acquisition Context
  • This is Aldine Capital Partners’ 7th and Capital For Business’ 14th transaction in the Manufacturing sector.
  • This is Aldine Capital Partners’ 39th and Capital For Business’ 43rd transaction in the United States.
  • This is Aldine Capital Partners’ 9th and Capital For Business’ 3rd transaction in Illinois.
Investment Fate
  • H3 was recapitalized in 2025.

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M&A Deal Summary

Date June 24, 2019
Target H3
Sector Manufacturing
Buyer(s) Aldine Capital Partners
Capital For Business
Deal Type Consolidation

Target Company

H3

Champaign, Illinois, United States
H3 is a manufacturer specializing in complex, custom weldments and sheet metal fabrication serving the medical, power, and transportation industries. H3 is comprised of Hi-Grade Welding and Manufacturing and HL Precision Manufacturing. H3 was founded in 2019 and is based in Champaign, Illinois.
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Buyers Overview 2

Buyer

Aldine Capital Partners

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2005
PE ASSETS 750M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Aldine Capital Partners is a mezzanine investment firm that provides mezzanine and junior capital financing to lower middle-market companies generating sales of at least $10 million and at least $2 million in EBITDA. Aldine invests in the range of $5 to $25 million per transaction. Types of transactions include management buyouts, acquisition financings, shareholder liquidity events, recapitalizations, and growth financings of smaller middle-market companies. Aldine will consider investments across the United States, but has a primary focus on opportunities in the Midwest. The Firm will not consider investments in start-ups, turnarounds, real estate, insurance, banking, and oil/gas. Aldine Capital was formed in 2005 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 39 of 74
Sector: Manufacturing 7 of 14
Type: Consolidation 1 of 1
State: Illinois 9 of 11
Country: United States 39 of 74
Year: 2019 3 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-01 ARCH Global

Bloomfield Hills, Michigan, United States

ARCH Global is a manufacturer of consumable cutting tools, medical instruments and implants and precision components. ARCH’s products serve a diverse set of large and growing end markets, including general industrial, medical, transportation and aerospace and defense. ARCH Global was formed in 2011 and is based in Livonia, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-07-16 Secure Personal Care Products

South San Francisco, California, United States

Secure Personal Care Products is a manufacturer and marketer of incontinence products to large medical distributors, assisted living facilities and regional distributors. The company distributes its products under the name “Total Dry” and they are widely viewed as some of the highest quality products in the U.S. The Total Dry product lineup includes bladder control pads, protective underwear, briefs and underpads designed for cost-effective solutions to the adult incontinence market. Secure Personal Care Products is based in South San Francisco, California.

Buy -
Buyer

Capital For Business

St. Louis, Missouri, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1959
PE ASSETS 200M USD
Size Small
Type Sector Agnostic
DESCRIPTION

Capital for Business (CFB) is a private investment firm focused on providing junior capital to growing lower middle-market companies with at least $10 to $100 million in sales. CFB targets businesses serving niche consumer, commercial, distribution, manufacturing, and service markets throughout the United States. Funds are typically used to support management buyouts, leveraged buyouts, recapitalizations, corporate divestitures, growth financings, and going-private transactions. CFB will not invest in start-ups, turnarounds, unproven technologies, biotech, real estate, and financial institutions. Capital for Business was founded in 1959 and is headquartered in St. Louis, Missouri.


Deal Context for Buyer #
Overall 43 of 56
Sector: Manufacturing 14 of 17
Type: Consolidation 1 of 1
State: Illinois 3 of 6
Country: United States 43 of 56
Year: 2019 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-24 Hi-Grade Welding & Mfg

Schaumburg, Illinois, United States

Hi-Grade Welding and Manufacturing LLC is a manufacturer of customized high-quality sub-assemblies used in an original equipment manufacturer ('OEMs') final product. The company's manufacturing operations include precision CNC machining, sheet metal fabrication, MIG/tig welding, as well as final assembly for various OEMs. Hi-Grade specializes in short-run projects with limited lead times and production runs that vary from 1 to 10,000 units per project. Hi-Grade Welding & Mfg was founded in 1969 and is based in Schaumburg, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-01 Entegra

Saint Charles, Illinois, United States

Entegra is a holding company for manufacturers of highly unique static, hydraulic, and electric work tool attachments for light & heavy mobile equipment and stationary work platforms. Entegra is based in Saint Charles, Illinois.

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