Jul 23, 2008
High Road Capital Partners completes first acquisition
High Road Capital Partners (www.highroadcap.com) has completed the first deal for its debut fund, High Road Capital Partners Fund I, LP, with the acquisition of Milwaukee Gear Company (www.milwaukeegear.com) and its sister company Treat All Metals, Inc. (www.treatallmetals.com), which closed July 21, 2008.
Based in Milwaukee, Wisconsin, Milwaukee Gear manufactures large custom precision spur and helical gears utilized in a variety of markets, including energy, industrial compressors, HVAC, and other general industrial applications. Also based in Milwaukee, Treat All Metals provides high-quality batch and continuous heat-treating services for Milwaukee Gear and other customers.
“Milwaukee Gear is extremely well positioned to benefit from continuing growth in the industrial market, where the company benefits from the favorable export environment, and in the energy market, particularly in wind power, where there will be a substantial increase in U.S. manufacturing in the near future,” said Robert Fitzsimmons, High Road’s Managing Partner. “We were very impressed with the company’s capabilities in engineering and manufacturing close tolerance, extremely durable precision gears. We look forward to working with Milwaukee Gear’s management team and our equity partner, Charter Oak Equity, to continue the company’s successful expansion.”
Rick Fullington, President and CEO of Milwaukee Gear, added, “High Road and Charter Oak will provide the capital and operating support we need to take advantage of the growth opportunities we see for Milwaukee Gear now and in the coming years. We will continue to focus on our core group of industrial customers, and believe that we can build our leadership position because of our superior-quality products and commitment to customer service.”
Debt financing for the transaction was provided by Babson Capital Management, LLC and JP Morgan Chase. Transaction consideration was not disclosed.
Also working on the transaction from High Road were Partners William Connell and William Hobbs, and Associate Ben Schnakenberg.
For further information, please contact Bob Fitzsimmons of High Road Capital Partners at (212) 554-3265.High Road Capital Partners
High Road Capital Partners is a leveraged buyout firm focused on the smaller middle market deals. High Road was formed in 2007 and currently manages over $150 million of committed capital. High Road focuses on buying niche-leading companies with revenues of $10 million to $100 million and EBITDA of $3 million to $10 million. Once acquired, High Road works in partnership with management to take the companies to the next level, with the expectation of doubling or tripling EBITDA during the course of its ownership through a combination of organic growth initiatives and add-on acquisitions. More information on High Road may be found on its website, www.highroadcap.com.Charter Oak Equity
Charter Oak Equity is a leveraged buyout firm located in Westport, CT also focused on smaller middle market deals. Charter Oak Equity is the third investment vehicle in the Charter Oak family and was formed in 2006. The firm invests primarily in manufacturing and medical device / engineering companies of a similar size and EBITDA as High Road. This acquisition is its fifth transaction. The partners of the firm are Paul Roughan (Managing Partner), Zubin Avari and Mark Ullman. More information on Charter Oak may be found on its website, www.charteroakpartners.com.
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