The Bottom Line: NewSpring Invests in Manitowoc Tool & Machining
December 15, 2022
NewSpring, a family of private equity strategies, today announced that NewSpring Mezzanine, the Firm’s dedicated mezzanine strategy, has invested subordinated debt and common equity to support Summit Equity Group and Midwest Growth Partners’ acquisition of Manitowoc Tool & Machining (MTM).
MTM is a production oriented, precision machining company servicing mission critical components
MTM offers a wide range of precision machining capabilities and related services specializing in medium- to high-volume and high cost-of-failure components for long-duration original equipment manufacturer (OEM) platforms. These components are utilized in a wide variety of applications and end markets, including agriculture, industrials, commercial HVAC, aerospace and defense, medical, and logistics/e-commerce.
MTM is differentiated by its long-standing relationships with blue-chip customers
MTM’s blue chip customer base includes leading OEMs that have some of the most recognizable names in manufacturing. The company is able to provide just-in-time services in its 261,000-square-foot warehouse, leading to high levels of customer satisfaction and loyalty. Even with the average tenure of its largest customers standing at more than 15 years, MTM continues to grow its reach and recently won two large contracts with Fortune 500 companies.
MTM has created a clear pathway to continued growth
MTM’s recent new business wins have allowed the company to diversify its service offerings and expand into new markets with substantial growth opportunities. By diversifying its revenue stream across multiple end markets, the company has established numerous pathways for continued growth over the next several years. The company’s breadth and scale of operations provide MTM with a strategic advantage and will help the company continue to win new clients.
“In our 50-plus years of business, we’ve always focused on producing the best results for our clients by providing the highest-value precision machining services to some of our country’s most iconic manufacturers. We still believe there’s plenty of room left for our business to expand and serve a wider range of businesses. We’re thrilled to partner with NewSpring, a firm with significant experience in precision manufacturing, as we build on this foundation and enter our next stage of growth.”
The company is run by an experienced and well-aligned management team
MTM’s management team is comprised of qualified leaders with extensive engineering and precision manufacturing experience. With a strong focus on growth, MTM President Rick Swoboda and his team represent the ideal partner NewSpring typically seeks for investment.
“Rick and his team have done a tremendous job growing the company over the last several years and positioning the business for continued growth. We’re excited about MTM’s future growth prospects as precision machining capabilities remain an essential service required by our country’s largest manufacturers. We are looking forward to working with the entire MTM team to take the company to new heights.”