Overview
Maine Machine Products Company, Inc. (“MMPCo”) is a leading manufacturer of precision, mission critical components and assemblies for the defense, oil & gas, and semiconductor industries. The Company had been owned by the Sutton Family for over 50 years and is highly regarded as an industry leader.
Bigelow Assignment
Proactively seek out the best next majority shareholder for the Company, and in doing so, provide a liquidity event for the founding family, while simultaneously supporting the professional management team’s business plan.
Challenges
MMPCo served multiple end-markets, some which were cyclical such as semiconductor manufacturing equipment. These historical market fluctuations and uncertain discontinued operations clouded the true underlying financial performance and strength of the business; sustainable operating performance was subjective.
While multiple family members were involved in the business, the recent addition of outside professional management had made dramatic operational and financial improvements. Could Bigelow find an investor that would have the experience to properly evaluate the business dynamics and place high value on MMPCo’s niche capabilities and legacy customer relationships?
“We chose Bigelow because of the people, their reputation, small firm size, and strong references. We wanted that extra personal attention. Bigelow understood how important it was for my family to feel that we did everything to treat the community right. It was much more complicated than I expected…so much more involved…the detail…the staggering amount of paperwork. I ended up with great appreciation for the team effort required to get it done.” Roland L. Sutton, Jr., Founder Maine Machine Products Company, Inc.
“We interviewed other investment banks and they were all about EBITDA, candidates, and valuation. I had previous experience as a CEO going through a sale process and believed we also needed family guidance. Bigelow was equally experienced on the “soft side” issues as on the deal points.” David MacMahon, President & CEO Maine Machine Products Company
Outcome
MMPCo was acquired by GenNx360 Capital Partners, a unique private equity firm founded by former senior operating executives of General Electric. GenNx360 applies state of the art operational expertise and investment discipline to successfully guide and grow industrial business-to-business companies. GenNx360 was able to prove out MMPCo’s recent financial performance and became attracted to MMPCo’s core strengths, success in the defense market, and management’s credible growth plan.