Hi-Tech and May River Acquire Interest in GCM
Hi-Tech and GCM represent a growth-oriented precision machining platform with diverse contract manufacturing capabilities for the energy, medical, industrial, transportation, scientific laboratory and aerospace sectors.
Posted: May 22, 2014
Hi-Tech Holdings, LLC (“Hi-Tech” or “Hi-Tech Manufacturing”; Schiller Park, IL), a portfolio company of May River Capital, LLC (“May River”; Union City, CA), announced it has acquired a majority interest in GCM Medical and OEM, Inc. and Global Contract Manufacturing (HK) Limited (together, “GCM” or the “Company”).
Headquartered in Union City, CA, with a second facility in Dongguan, China, GCM is a preferred supplier of contract manufacturing services to leading OEMs in the medical, industrial, transportation, and aerospace sectors.
Based in Schiller Park, IL, Hi-Tech is a world class manufacturer of low-to-medium volume, mission-critical precision machined components and assemblies. Hi-Tech serves large, market leading customers in the energy, medical, scientific laboratory and industrial end markets.
Together, Hi-Tech and GCM represent a growth-oriented precision machining platform with diverse contract manufacturing capabilities, innovative and market-leading customers, a world-class quality system, and over 220,000 total sq ft of manufacturing space across three facilities in North America and China.
Hi-Tech, May River and its co-investors acquired GCM in partnership with GCM’s president and co-owner, Seamus Meagher, as well as GCM’s co-founders, David Ko and Ned Milicevic. Meagher will continue to manage GCM as its president and report to Hi-Tech’s chief executive officer, Tim Weaver.
Meagher, Ko and Milicevic will invest equity in the combined company alongside May River, its co-investors and Hi-Tech’s senior leadership team.
Meagher said, “We ultimately decided to partner with Hi-Tech and May River as they share our vision for growing our company in diverse end markets for critical applications.They can provide the financial and strategic resources to accomplish our goals and provide our customers with world-class service, quality and manufacturing expertise.”
Weaver added, “GCM represents a strong fit with Hi-Tech across all critical categories. We were immediately drawn to its talented and like-minded leadership team, the company’s strong quality systems, and excellent customer relationships.”
Dan Barlow, a May River partner, commented, “GCM has a demonstrated track record of consistent growth through cycles, which is a credit to the talented employees and management staff. We’re thrilled to have them as partners in growing our platform.”
Chip Grace, another May River partner, noted, “The addition of GCM greatly expands Hi-Tech’s contract manufacturing capabilities and diversifies the combined platform across customers and end-markets.”
GCM offers precision machining, sheet metal fabrication, EDM, Swiss machining, furnace brazing, electro-mechanical assembly and clean room integration as core service solutions. GCM also provides value-added services to its customers including rapid-prototyping/new product introduction, supply chain management, and low cost region manufacturing through its wholly-owned subsidiary in Dongguan, China.
Cook M&A Advisory Services, Inc. served as financial advisor and Paul Hastings LLP served as legal counsel to Hi-Tech, May River and its investor group. Hi-Tech’s existing lenders, Fifth Third Bank and Yukon Partners, provided senior and subordinated debt financing in support of the acquisition.
May River and its existing co-investment partners, including the Pohlad family and Yukon Partners, provided additional equity along with Hi-Tech’s senior leadership team, and Messrs. Meagher, Ko and Milicevic.
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