BOSTON, MA, MAY 2, 2017 – Charlesbank Capital Partners, LLC today announced the acquisition of Tecomet. Based in Wilmington, MA, Tecomet is a leading contract manufacturer of orthopedic implants, as well as critical components for the cardiovascular, medical imaging and aerospace markets. Its core capabilities include forging, coating, casting, precision machining, photochemical etching, welding and finishing. The transaction marks Charlesbank’s second acquisition of the company, each time in partnership with management. Charlesbank first acquired Tecomet from Cardinal Health in 2008, expanding its business capabilities, customer base and reputation for innovation before selling it in late 2013 to the current seller. Equity for the new transaction was provided by Charlesbank, management and certain strategic investors. Financing terms were not disclosed.
A market leader in a fragmented industry, Tecomet has the largest breadth of offerings among orthopedic outsourced manufacturers. The company operates 16 global manufacturing centers in five countries, employing roughly 2,800 people.
“Our first investment in Tecomet was very successful, and we are even more excited about the business today,” said Brandon White, Managing Director at Charlesbank. “Tecomet continues to have strong customer relationships, differentiated capabilities, and attractive demographic tailwinds. The business should not only benefit from continued growth in outsourcing penetration, but also have significant opportunities to further consolidate the industry. We believe these strengths make Tecomet a very compelling investment.”
Josh Klevens, a fellow Charlesbank Managing Director, added, “We have great familiarity with the industry, the company and many members of the management team. CEO Mark Kemp has a deep bench of industry veterans with proven expertise in integrating acquisitions and a firm focus on product innovation and customer responsiveness. We look forward to helping the team build on its excellent track record and trajectory for growth while maintaining the best possible service for Tecomet’s customers.”
Tecomet has many long-standing, deeply integrated blue chip customers, including some of the nation’s leading medical and aerospace & defense OEMs. Charlesbank and Tecomet see significant opportunity to continue the growth strategy that they began in 2008.
“We have had a very successful partnership with Genstar and are grateful for their trust and support,” said Tecomet CEO Mark Kemp. “Now we are delighted to be partnering once again with Charlesbank, a firm that shares our strategic vision and understands our culture. Together we will work to deliver continued excellence and improvement across operations, innovation and customer service.”
Charlesbank was advised both by Jefferies Group LLC and Robert W. Baird & Co. in consummating the Tecomet acquisition. William Blair & Company LLC advised Tecomet.
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $3.4 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically of companies with enterprise values of between $150 million to $1.5 billion, and also engages in opportunistic credit investments. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantage and excellent prospects for growth. For more information, visit www.charlesbank.com.