M&A Deal Summary

McNally Capital and Patriot Capital Acquire Dedicated Computing

On December 30, 2016, private equity firms McNally Capital and Patriot Capital acquired technology hardware company Dedicated Computing from Mason Wells

Acquisition Highlights
  • This is McNally Capital’s 1st and Patriot Capital’s 1st transaction in the Technology Hardware sector.
  • This is McNally Capital’s 5th and Patriot Capital’s 72nd transaction in the United States.
  • This is McNally Capital’s 2nd and Patriot Capital’s 3rd transaction in Wisconsin.

M&A Deal Summary

Date 2016-12-30
Target Dedicated Computing
Sector Technology Hardware
Buyer(s) McNally Capital
Patriot Capital
Sellers(s) Mason Wells
Deal Type Secondary Buyout

Target

Dedicated Computing

Waukesha, Wisconsin, United States
Dedicated Computing is a provider of embedded computers (compute engines) as well as integration and product lifecycle management services to original equipment manufacturers (OEMs) and independent software vendors (ISVs). Dedicated Computing was founded in 1978 and is based in Waukesha, Wisconsin.

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Buyer(S) 2

DESCRIPTION

McNally Capital is a family office that partners with other family offices to acquire and invest in lower middle-market business services and manufacturing companies. The Firm targets control or minority investments in US-based companies with $5 to $15 of EBITDA. Specific areas of interest include industrials, food/beverages, aerospace/defense, healthcare, energy, and packaging. McNally Capital was established in 2007 and is based in Chicago, Illinois.


DEAL STATS #
Overall 5 of 11
Sector (Technology Hardware) 1 of 1
Type (Secondary Buyout) 2 of 3
State (Wisconsin) 2 of 2
Country (United States) 5 of 11
Year (2016) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-21 Genesys Aerosystems Group

Mineral Wells, Texas, United States

Genesys Aerosystems is a provider of integrated avionics systems for military and civil aircraft manufacturers and operators. Genesys Aerosystems offers a diverse and growing product line which includes 3D Synthetic Vision Electronic Flight Instrument Systems, S-TEC Analog and Digital Autopilots, HeliSAS® Helicopter Autopilot and Stability Augmentation System, as well as sensors and components. Genesys Aerosystems was established in 2014 and is based in Mineral Wells, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-07-19 Federal Data Systems

Columbia, Maryland, United States

Federal Data Systems is a provider of information technology products and services to government and commercial markets. FedData specializes in the design, delivery, implementation, and monitoring of automated systems with a corporate emphasis on infrastructure design, data security, incident response, continuity of operations, and information assurance. Through several prime contracts with the United States Intelligence Community, FedData provides design and implementation of sophisticated IT networks for systems of national importance. Federal Data Systems was founded in 2006 and is based in Columbia, Maryland.

Buy -
Buyer

Patriot Capital

Baltimore, Maryland, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Size Large
Type Sector Agnostic
DESCRIPTION

Patriot Capital is a private investment firm that provides equity and junior capital to support acquisitions, growth capital financings, management buyouts, and recapitalizations of middle-market companies. The Firm looks to invest $5 to $25 million in businesses generating revenues of $10 to $200 million. Areas of interest include business and consumer services, consumer products, niche manufacturing and distribution, education, e-commerce, application software, transportation, and telecom services. Patriot focuses its investment activity with the Mid-Atlantic, Midwest, and Southern areas of the US. Patriot Capital is based in Baltimore, Maryland.


DEAL STATS #
Overall 72 of 108
Sector (Technology Hardware) 1 of 1
Type (Secondary Buyout) 7 of 14
State (Wisconsin) 3 of 5
Country (United States) 72 of 108
Year (2016) 8 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-30 STX Healthcare Management Services

Bellaire, Texas, United States

STX Healthcare Management Services, Inc. is a dental practice management services company that provides back-office and management services to dental clinics throughout the Southeast. STX was established in 2009 and is based in Bellaire, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-11 Union Corrugating

Fayetteville, North Carolina, United States

Union Corrugating is a manufacturer of metal roofing systems and roofing components for use in residential, commercial, and post-frame/agricultural applications. Union Corrugating was founded in 1946 and is based in Fayetteville, North Carolina.

Buy -

Seller(S) 1

SELLER

Mason Wells

Milwaukee, Wisconsin, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 2.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Mason Wells is a private equity firm focused on middle-market buyout opportunities in the Midwest US. Mason Wells looks to invest in businesses operating in engineered products and services, outsourced business services, and specialty packaging. Target companies typically generate revenue of $25 to $300 million and EBITDA of at least $5 million. The Firm prefers businesses with high barriers to entry, limited customer concentration, and strong market positions. Mason Wells was originally formed 1982 as a subsidiary of Marshall & Ilsley Corporation and became an independent firm in 1998. Mason Wells is based in Milwaukee, Wisconsin.


DEAL STATS #
Overall 27 of 40
Sector (Technology Hardware) 1 of 1
Type (Secondary Buyout) 6 of 11
State (Wisconsin) 18 of 21
Country (United States) 26 of 38
Year (2016) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-07-18 Mullinix Packages

Fort Wayne, Indiana, United States

Mullinix Packages, Inc. is a manufacturer of thermoformed packaging for the food industry. The company manufactures custom and stock trays, clamshells, lids and cups for food processing, food service and retail end markets. Mullinix's customer base includes branded and private label food processors, food packaging companies, quick service restaurants and foodservice distributors.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-08-01 Calypso Lemonades

Milwaukee, Wisconsin, United States

Calypso Lemonades is a manufacturer and marketer of the Calypso brand of lemonade drinks and a co-manufacturer of non-alcoholic beverages. Calypso Lemonades was established in 1983 and is based in Milwaukee, Wisconsin.

Buy -