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CapitalWorks Exits Investment in Bluffton Motor Works

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CLEVELAND, OHIO – Cleveland private equity firm CapitalWorks announced today the sale of its portfolio company, Bluffton Motor Works, to WEG S.A. Bluffton Motor Works is a leading manufacturer of sub-five horsepower motors that power a wide variety of applications throughout the world. Terms of the deal were not disclosed.

CapitalWorks originally acquired Bluffton in 2006 and subsequently recapitalized it in 2010 and 2014. The original transaction was a corporate carve-out from Franklin Electric Corporation (NASDAQ: FELE).  “Recruiting an Advisory Board of industry veterans including alumni from Reliance Electric, Rockwell, RELTEC, LEESON and Lincoln Electric enabled CapitalWorks to recruit David Nussear as CEO, and set the strategy to more than double the size of the business,” said CapitalWorks Managing Partner and Chairman Rob McCreary. The firm supported a number of strategic investments including the acquisitions of Toledo Gear Motor in 2011, Electric Motors North in 2012 and RAE Corporation in 2013 as well as the greenfield launch of a motor designed to serve the pool market in 2014.… Read this article

CapitalWorks Acquires Paradigm Window Solutions, Fourth Portfolio Addition in 12 Months

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Paradigm Window SolutionsCLEVELAND, OHIO – Cleveland private equity firm CapitalWorks has acquired Paradigm Window Solutions, a leading manufacturer of premium quality custom vinyl windows in the Northeast. Terms of the deal, the fourth for CapitalWorks in the last 12 months, were not disclosed.

Key to the acquisition is the continuing participation of former Simonton Building Products President and COO John Brunett as chairman of Paradigm and Andy Sevier as president. Brunett helped build Simonton from a regional to a national leader in vinyl windows and has been with Paradigm since 2010. Sevier has been with the company for nearly three decades.

“We are excited to partner with the Paradigm team to continue to expand their market presence,” said CapitalWorks Managing Partner and CEO Dick Hollington. “The delivered and installed quality of their premium vinyl windows and doors along with their warranty and support programs are unmatched in the industry.”

CapitalWorks Exits Investment in Magna-Tech Manufacturing

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Cleveland, OH – CapitalWorks LLC, a lower middle market private equity firm, announced today the sale of its portfolio company, Magna-Tech Manufacturing, to Henkel Corporation. Magna-Tech Manufacturing is the North American market leader in vacuum impregnation services, with a focus on process center capabilities. Magna-Tech will function as a subsidiary of Henkel Corporation, operating as part of its Adhesive Technologies business.

“I look forward to a joint working relationship with Henkel and the opportunities that will result from this combined business environment,” said Rob Swords, CEO of Magna-Tech.

CapitalWorks acquired Magna-Tech in 2012. The firm supported a number of strategic investments including the recent acquisition of Casting Impregnators and the launch of an operation in Mexico. Todd Martin, a Partner with CapitalWorks commented on the deal, “We are delighted to have found the ideal partner for our management team that will continue investing in the business.… Read this article

CapitalWorks Acquires Environmental Waste Management Solutions Company Chemtron Corporation

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Cleveland, OH – Expanding its portfolio of strong middle market businesses, CapitalWorks, LLC, has acquired a majority interest in Chemtron Corporation, a privately-held environmental waste management solutions company based in Avon, Ohio. Chemtron provides a single source for waste management services to customers including industrial manufacturers, healthcare facilities and consumer product companies.

CapitalWorks will be partnering with Chemtron President Ron Guenther and brothers Karl and Mike who have owned the company since 1980. The Guenthers will continue to be significant owners and will remain in their current management roles to build upon their 35 years of success. Details of the transaction were not disclosed.

“We look forward to supporting the Guenther’s long term vision for Chemtron”, said CFO, Mike Harding, who led CapitalWorks investment team. “The partnership of our industry experts and the highly skilled Chemtron team will enable the company to achieve a new level of performance.… Read this article

KKSP Expands Multi-Turn Precision Industries in Mexico

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KKSP Multi-Turn Precision MachiningAs part of KKSP Precision Machining’s and the Multi-Turn Division’s continued mission to improve service and meet growing customer demand for localized sourcing, the company is more than doubling the size of its operation in Monterey, Mexico. KKSP is a CapitalWorks portfolio company.

The new facility is more than 52,000 square feet in size and located just five miles from the current Monterrey location. Multi-Turn is well underway building out the facility and is targeting project completion in the fourth quarter of 2015 with all equipment moved and fully operational by January 2016.

Multi-turn will be utilizing all existing machines, operators, raw material suppliers and production and management systems in the new location. Once complete, the new facility will allow Multi-Turn to significantly grow and broaden its machining capabilities over time to increase the capacity and range of services it is able to offer customers.… Read this article

Lombardo Joins CapitalWorks

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Matthew Lombardo has joined CapitalWorks as a senior associate with primary duties as a private equity analyst.Matthew Lombardo CapitalWorks

His responsibilities include screening and analysis of acquisition opportunities, conducting due diligence and procuring deal financing. Additionally, he works with current portfolio companies to assist them with various projects as well as governance and monitoring initiatives.

Prior to joining CapitalWorks, Mr. Lombardo worked for Robert W. Baird as a mergers and acquisitions associate in the firm’s Industrial group, where he advised public and private middle market companies on sell-side, carve-out divestiture and buy-side transactions. Mr. Lombardo spent eight years prior to Baird working for Victory Capital Management, a Cleveland based investment management firm, where he was responsible for analyzing and investing in public equities.

Mr. Lombardo received a Bachelor of Arts in economics from Michigan State University and a Master’s in Business Administration from The University of Chicago Booth School of Business. … Read this article

CapitalWorks Acquires National Banking Technology Services Company

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Bancsource logoCleveland private equity firm CapitalWorks, LLC, announced today it has acquired majority ownership of privately-held banking technology services provider Bancsource, Inc. based in Republic, Missouri. Bancsource provides maintenance services and sales of cash cycle equipment including ATMs, smart safes, scanners and other equipment for financial institutions and retailers nationwide.

“Bancsource provides a high level of service in an industry that demands high quality,” said CapitalWorks Managing Partner Dick Hollington. “With its client-centric approach combined with industry dynamics which are opening opportunities to independent technology service providers, Bancsource is well-positioned to assist its client-partners and continue to grow.”

Details of the transaction were not disclosed but Hollington said there will be additional announcements in the future regarding the investment and about management of Bancsource.

“We plan to invest in and grow Bancsource,” he said.… Read this article

Guadiosi Joins Capewell as Controller

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Mark-Guadiosi-webMarc Gaudiosi has joined Capewell Holdings as controller, corporate services. Marc was previously controller at Shelterlogic Corp, Chromalloy Gas Turbine, The Stanley Works and Danaher Corp.

Marc brings a wealth of financial leadership experience in manufacturing, financial reporting and analysis, cost accounting and bank covenant compliance. He has significant experience working with Capewell’s ERP system Infor Visual, payroll system Paylocity and fixed asset system Sage. He will apply these skills to better automate Capewell’s financial and operations reporting.

In addition, Marc gained experience working with a goal deployment process similar to the 6D process Capewell uses and has also been involved in international work.

Marc has a master’s degree in professional accounting from the University of New Haven and a bachelor’s degree in finance from Central Connecticut State University.… Read this article

Schweiger Joins Capewell as HR Manager

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TracySchwigerwebTracy Schweiger has joined CapitalWorks portfolio company Capewell Holdings as human resource manager, corporate services. At Capewell, Tracy’s responsibilities will include working with all managers and the corporate services team, managing relationships with outside human resources service providers and coordinating policies and procedures.

In her previous job at Beazley USA Services, Tracy handled payroll for a multi-location company in the US, implemented an ADP time and attendance program, managed open enrollment and developed training materials, recruited a 401k financial advisor and worked with managers and supervisors to resolve issues and act as an impartial mediator in employee matters.

Capewell Holdings is the parent company of Capewell Aerial Systems and Ripley Tools.

CapitalWorks Successfully Completes Two Portfolio Company Dividend Recapitalizations

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CLEVELAND, Ohio – Cleveland based private equity firm CapitalWorks has successfully completed dividend recapitalizations for portfolio companies Bluffton Motor Works and KKSP Precision Machining. Strong operating and financial performance of the businesses over the past two years and a favorable credit market made the recapitalizations possible. Proceeds were distributed to shareholders.

kksplogoweb2Bluffton Motor Works manufactures custom fractional horsepower motors for a wide array of industries. KKSP Precision Machining is the largest independent operator of cam operated multi spindle screw machines in the United States. Both companies have benefited from the improved economy while also improving their market penetrationBlufftonMW_logo300pixels and operating performance.

“We can’t say enough about the performance of these two talented management teams,” said CapitalWorks Managing Partner Dick Hollington. “Their focus and dedication has driven solid growth and profitability and has put them in position to take advantage of the favorable credit environment, enabling us to distribute funds to our shareholders.”