M&A Deal Summary

Ironwood Capital, Argosy Private Equity and MTN Capital Partners Acquire Joliet Electric Motors

On March 12, 2008, growth capital firm Ironwood Capital, private equity firm Argosy Private Equity and private equity firm MTN Capital Partners acquired electrical equipment company Joliet Electric Motors

Acquisition Highlights
  • This is Ironwood Capital’s 1st, Argosy Private Equity’s 1st and MTN Capital Partners’ 1st transaction in the Electrical Equipment sector.
  • This is Ironwood Capital’s 17th, Argosy Private Equity’s 25th and MTN Capital Partners’ 3rd transaction in the United States.
  • This is Ironwood Capital’s 1st, Argosy Private Equity’s 1st and MTN Capital Partners’ 1st transaction in Illinois.

M&A Deal Summary

Date 2008-03-12
Target Joliet Electric Motors
Sector Electrical Equipment
Buyer(s) Ironwood Capital
Argosy Private Equity
MTN Capital Partners
Deal Type Buyout (LBO, MBO, MBI)

Target

Joliet Electric Motors

Joliet, Illinois, United States
Joliet Electric Motors is a provider of new and remanufactured AC and DC traction motors for the oil and gas drilling and exploration industries and other high power, large motor industrial applications. The Company also provides industrial motor repair services. Joliet Electric Motors was founded in 1954 and is based in Joliet, Illinois.

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Buyer(S) 3

Buyer

Ironwood Capital

Avon, Connecticut, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1986
PE ASSETS 1.0B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Ironwood Capital is a private investment firm that makes equity and subordinated debt investments in lower middle-market companies. Investment proceeds are generally used to support leveraged buyouts, growth financings, and recapitalizations. Investments typically range from $10 to $40 million in companies generating $20 to $250 million in annual sales. Target sectors include healthcare products/services, value-added manufacturing, business services, consumer products, specialty distribution, and education. Ironwood prefers opportunities East of the Mississippi, but will selectively consider investments in the Western US. The Firm's investment horizon is three to five years. Ironwood Capital was formed in 2002 and is based in Avon, Connecticut.


DEAL STATS #
Overall 17 of 95
Sector (Electrical Equipment) 1 of 3
Type (Buyout (LBO, MBO, MBI)) 10 of 28
State (Illinois) 1 of 4
Country (United States) 17 of 95
Year (2008) 3 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-03-10 Retention Education

Newport Beach, California, United States

Retention Education provides innovative educational products and services to corporations and educational institutions to improve the English competency of Limited English Proficient (LEP) Hispanic adults. Its flagship product, Sed de Saber (?Thirst for Knowledge?), is comprised of a highly targeted language curriculum, portable technology platform and multi-sensory approach that learners find very effective. Customers that deploy Sed de Saber attest to its significant role in improving business performance, reducing employee turnover and positively impacting the lives of users.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-04-10 C&M

Wauregan, Connecticut, United States

C&M Corp. is a designer and manufacturer of wire & cable and coil cords for performance-critical applications. The company serves blue-chip customers across a variety of growing markets including industrial automation, medical and military. C&M Corporation has over 50 years of experience designing and manufacturing wire and cable, coil cords, and cable assembly solutions for mission and performance critical applications which simply cannot fail.

Buy -
Buyer

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 STATS #
Overall 25 of 88
Sector (Electrical Equipment) 1 of 3
Type (Buyout (LBO, MBO, MBI)) 18 of 53
State (Illinois) 1 of 2
Country (United States) 25 of 88
Year (2008) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-12-30 Fraser Volpe

Warminster, Pennsylvania, United States

Fraser Volpe produces high quality optical and night vision equipment for military use. The company is headquartered in Warminster, Pennsylvania.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-04-10 Aladdin Food Management Services

Wheeling, West Virginia, United States

Aladdin Food Management Services LLC is a contract food service company, providing food, nutrition and dining management services to institutions throughout the Midwest, East and Southeast U.S.

Sell -
Buyer
DESCRIPTION

MTN Capital Partners LLC is a lower middle-market private equity firm focused on investing in North American companies. MTN will consider both healthy as well as distressed companies. Sectors of interest include manufacturing, business services, consumer products, specialty retail, restaurants, distribution, energy services, automotive, food/beverage, healthcare, marketing services, chemicals, and communications. For healthy companies, MTN targets businesses with at least $10 million in revenues and $2 to $15 million of EBITDA, and for distressed situations. MTN Capital Partners was founded in 2003 and is based in New York City.


DEAL STATS #
Overall 3 of 8
Sector (Electrical Equipment) 1 of 2
Type (Buyout (LBO, MBO, MBI)) 2 of 5
State (Illinois) 1 of 2
Country (United States) 3 of 7
Year (2008) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-04-03 Kings Food Markets

Parsippany, New Jersey, United States

Kings Food Markets is a gourmet food retailer with an established reputation for high quality products and servicesPartnered with industry veteran and fundless sponsor to acquire chain of 24 stores from a UK parent. An upscale grocery store serving customers throughout New Jersey, New York and Connecticut, Kings provides a unique shopping experience paired with the highest quality foods. From locally sourced, organically grown produce, to fresh fruit, delicious meats to hand-selected cheeses from over 20 countries.

Buy $62M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-10-24 Orthotic Group

Markham, Ontario, Canada

Orthotic Group is a manufacturer and distributor of custom prescription orthotics, orthotic footwear and gait and rehabilitation markets in North America, Europe and Australia. Orthotic Group was founded in 1985 and is based in Markham, Ontario.

Buy -