M&A Deal Summary

CNL Strategic Capital Management Acquires Vektek

On May 10, 2022, asset manager CNL Strategic Capital Management acquired manufacturer Vektek from LFM Capital and Five Points Capital

Acquisition Highlights
  • This is CNL Strategic Capital Management’s 1st transaction in the Manufacturing sector.
  • This is CNL Strategic Capital Management’s 11th transaction in the United States.
  • This is CNL Strategic Capital Management’s 1st transaction in Kansas.

M&A Deal Summary

Date 2022-05-10
Target Vektek
Sector Manufacturing
Buyer(s) CNL Strategic Capital Management
Sellers(s) LFM Capital
Five Points Capital
Deal Type Secondary Buyout

Target

Vektek

Emporia, Kansas, United States
Vektek is a designer and manufacturer of hydraulic clamps and related products that are used to secure parts during the metal cutting process associated with CNC machining. Vektek’s extensive product offering of highly-engineered workholding products includes hydraulic clamps, work supports, cylinders, valves, and power supplies. Vektek serves a loyal, highly diverse, and global customer base primarily comprised of end users that machine high-volume precision parts themselves and fixture builders that manufacture and assemble workholding devices that are sold to end users. Vektek’s products serve a wide range of industries including automotive, rail, agriculture, and aerospace. Vektek was founded in 1974 and is based in Emporia, Kansas.

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Buyer(S) 1

DESCRIPTION

CNL Strategic Capital Management is an investment group that looks to acquire interests in private US-based companies with clear opportunities for growth where it can pass consistent, monthly cash flows to its investor partners. The Firm generally looks to partner with management when pursuing opportunities and targets companies with durable brands, high margins, and insulated products/services. CNL Strategic Capital Management is based in Orlando, Florida.


DEAL STATS #
Overall 11 of 14
Sector (Manufacturing) 1 of 1
Type (Secondary Buyout) 7 of 8
State (Kansas) 1 of 1
Country (United States) 11 of 14
Year (2022) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-09 Clarion

Milford, Pennsylvania, United States

Clarion is a provider of standards-based visual safety labels and signs that support original equipment manufacturers, facility owners, and employers in reducing risk and protecting workers. It serves thousands of customers across the world in a large and diverse set of industries. Customers rely on Clarion’s expertise to help them navigate applicable regulatory and safety standards related to risk communication, resulting in the implementation of tailored systems of risk reduction. Clarion Safety Systems was established in 1989 and is based in Milford, Pennsylvania.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-03-27 TacMed Solutions

Anderson, South Carolina, United States

TacMed Solutions is a developer and manufacturer of hemorrhage control and related safety products for emergency trauma care across the military, law enforcement, fire & emergency services, and civilian end markets. TacMed Solutions is known for delivering patented products and kitted solutions that address a full continuum of care, from the point of injury through emergency transportation and into a medical care facility. TacMed Solutions was founded in 2003 and is based in Anderson, South Carolina.

Buy -

Seller(S) 2

SELLER

LFM Capital

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2014
PE ASSETS 110M USD
Size Small
Type Sector Agnostic
DESCRIPTION

LFM Capital is a private equity investor focused on acquiring North American manufacturing and industrial services businesses. The Firm looks to invest in lower middle-market companies generating sales of $10 to $150 million and EBITDA between $3 and $15 million. LFM Capital was founded in 2014 and headquartered in Nashville, Tennessee.


DEAL STATS #
Overall 5 of 8
Sector (Manufacturing) 2 of 3
Type (Secondary Buyout) 4 of 5
State (Kansas) 1 of 1
Country (United States) 5 of 8
Year (2022) 3 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-01-18 Invio Automation

Lansing, Michigan, United States

Invio Automation designs, builds, and sustains advanced industrial solutions used to solve complex manufacturing needs. The company's proven portfolio of Industry 4.0 technology includes autonomous guided vehicles (AGVs), collaborative robot systems, traditional robotics, assembly automation & simulation, 3D printing tool development & production, and Factory of the Future consulting for manufacturers. Invio Automation was formed in 1974 and is based in Lansing, Michigan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-06-28 Novex

Wadsworth, Ohio, United States

Novex is a manufacturer and distributor of polyurethane belting and sheet products used in high-abrasion applications across a wide variety of industries, including agriculture, food processing, lumber, packaging, and recycling. Novex was founded in 1987 and is based in Wadsworth, Ohio.

Buy -
SELLER

Five Points Capital

Winston-Salem, North Carolina, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 1.3B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Five Points Capital makes both direct private equity and junior capital investments in US-based middle-market companies. Five Points prefers control based investments and will consider opportunities in a variety of industries. For both equity and mezzanine investments, the Firm looks to commit $5 to $25 million of capital in businesses with at least $10 million in sales and $3 million of EBITDA. Five Points Capital was formerly known as BB&T Capital Partners and re-branded in 2015. The Firm was established in 1997 and is based in Winston-Salem, North Carolina.


DEAL STATS #
Overall 46 of 58
Sector (Manufacturing) 2 of 4
Type (Secondary Buyout) 23 of 26
State (Kansas) 2 of 2
Country (United States) 46 of 58
Year (2022) 5 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-04-22 TransGo

El Monte, California, United States

TransGo is a specialty manufacturer and designer of automotive transmission valve body parts that are used to repair faulty automatic transmissions. The Company’s products exclusively address automatic transmission valve bodies, one of the most technically complex parts of a transmission and a necessary component of nearly every transmission overhaul/repair. TransGo was formed in 1959 and is based in El Monte, California.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-06-15 SuperStroke

Wixom, Michigan, United States

SuperStroke is a developer, marketer and outsourced manufacturer of golf equipment including oversized putter grips, round grips, and weighted grips. SuperStroke was formed in 1998 and is based in Wixom, Michigan.

Sell -