Recapitalization • Manufacturing

Rock Gate Partners and Ironwood Capital Acquire H3

On February 27, 2025, private equity firm Rock Gate Partners and growth capital firm Ironwood Capital acquired manufacturer H3 from Aldine Capital Partners and Capital For Business

Acquisition Context
  • This is Rock Gate Partners’ 2nd and Ironwood Capital’s 17th transaction in the Manufacturing sector.
  • This is Rock Gate Partners’ 6th and Ironwood Capital’s 96th transaction in the United States.
  • This is Rock Gate Partners’ 3rd and Ironwood Capital’s 4th transaction in Illinois.

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M&A Deal Summary

Date February 27, 2025
Target H3
Sector Manufacturing
Buyer(s) Rock Gate Partners
Ironwood Capital
Sellers(s) Aldine Capital Partners
Capital For Business
Deal Type Recapitalization

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

Rock Gate Partners

Chicago, Illinois, United States

Investor Investor Investor Investor


Category Private Equity Firm
Founded 2006
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Rock Gate Partners is a private equity firm that targets lower middle-market companies located throughout North America. RGP focuses on acquiring companies that design, engineer, manufacturing/source, market and distribute products in a wide range of commercial, consumer, value-added distribution, energy, industrial, healthcare, medical and transportation sectors. RGP typically invests between $3 and $50 million in companies with revenues of $10 to $125 million. The Firm prefers control positions but will consider select minority investments. Broad areas of interest include aerospace/defense, commercial and specialty vehicle, construction and Infrastructure material, consumer products and services, value-added distribution, electronic components, specialty natural, organic foods, specialty furniture, healthcare, health/fitness, hobby & craft, home improvement, general industrial, medical, laboratory and surgical devices, outsourcing services, renewable energy, safety and security, specialty packaging, recreation, athletic/leisure, and test/measurement. Prospective transaction types include leveraged buyouts, corporate divestitures, recapitalizations, industry consolidations, and later stage growth capital financings. Rock Gate Partners was formed in 2006 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 6 of 6
Sector: Manufacturing 2 of 2
Type: Recapitalization 1 of 1
State: Illinois 3 of 3
Country: United States 6 of 6
Year: 2025 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2022-12-05 US Auto Supply

Elgin, Illinois, United States

US Auto Supply is a B2B cataloger and direct marketer (i.e., outbound call center and e-commerce) company serving the automotive body and mechanical repair shop industries, and, to a lesser degree, the veterinary, construction and trucking industries. US Auto Supply was founded in 1946 and is based in Elgin, Illinois.

Sell -
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 Context for Buyer #
Overall 96 of 97
Sector: Manufacturing 17 of 17
Type: Recapitalization 15 of 15
State: Illinois 4 of 4
Country: United States 96 of 97
Year: 2025 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2025-01-02 Air Temp Mechanical Services

Berlin, Connecticut, United States

Air Temp Mechanical Services is a HVAC service providers. Air Temp Mechanical Services operates as a full-service mechanical contractor with an emphasis on design-build, service, maintenance, controls, retrofits, replacements, and energy management systems. Air Temp Mechanical Services was founded in 1978 and is based in Berlin, Connecticut.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2025-06-19 Specialty Bakers

Marysville, Pennsylvania, United States

Specialty Bakers produces branded and private label baked products such as French Twirls (Crème Horns), Dessert Shells, Cake Rolls, and Angel Food Cakes. The products are distributed primarily to grocery stores, mass merchants and other retailers for sale in their “in-store” bakery sections. Specialty Bakers was established in 1901 and is based in Marysville, Pennsylvania.

Buy -

Seller Profiles 2

SELLER

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 Seller #
Overall 25 of 28
Sector: Manufacturing 3 of 5
Type: Recapitalization 2 of 2
State: Illinois 7 of 7
Country: United States 25 of 28
Year: 2025 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-09-11 Capstone Integrated Solutions

Middletown, New York, United States

Capstone Integrated Solutions is a full-service software and digital services company that focuses on retail and payment processing. Capstone Integrated Solutions is based in Middletown, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2025-04-17 Ntara

Johnson, Tennessee, United States

Ntara offers consulting and implementation services within PIM, DAM, and digital commerce software. Ntara was founded in 1999 and is based in Johnson, Tennessee.

Buy -
SELLER

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 Seller #
Overall 22 of 23
Sector: Manufacturing 8 of 8
Type: Recapitalization 3 of 3
State: Illinois 2 of 2
Country: United States 22 of 23
Year: 2025 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2024-08-23 T-Tek Material Handling

Montgomery, Alabama, United States

T-TEK Material Handling is a manufacturer of high-speed palletizing, depalletizing and conveying systems for multiple industries including the beverage industry. The company also design, service, and support high-speed pallet sortation and repair systems. T-Tek Material Handling was founded in 1996 and is based in Montgomery, Alabama.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2025-05-19 Epic Systems

St. Louis, Missouri, United States

Epic Systems is an engineering company, industrial automation engineering, and fabrication firm. Epic provides turnkey solutions for modular process systems, pilot plants, distillation systems, integrated packaging and assembly lines, industrial automation engineering, and machine vision system integration. Epic Systems was founded in 1995 and is based in St. Louis, Missouri.

Sell -