The Bottom Line: NewSpring Invests in The Jor-Mac Company
March 21, 2024
NewSpring, a family of private equity strategies, announced today that NewSpring Mezzanine, the Firm’s dedicated private credit strategy, has invested senior subordinated debt and preferred equity in The Jor-Mac Company (Jor-Mac).
Jor-Mac is a contract manufacturer of metal fabrications and assemblies
Jor-Mac provides end-to-end customized manufacturing solutions to original equipment manufacturers (OEMs) in the HVAC, industrial automation, and back-up power infrastructure spaces. Based in Lomira, WI, the company is fully integrated with engineering, prototyping, laser cutting, welding, powder coating, assembly, and kitting services.
NewSpring’s investment will be used to facilitate Jor-Mac’s acquisition of Muza Metal Products (Muza)
Also based in Wisconsin, Muza is a full-service contract metal fabrication and machining company that provides prototyping, engineering, design, machining, forming, and welding services to customers in similar end markets as Jor-Mac. The company operates out of a 190,000-square-foot facility and has a diversified customer base of more than 70 businesses.
This acquisition provides Jor-Mac with additional scale and expertise
Both Jor-Mac and Muza have longstanding relationships with their customers, with average tenures of their top customers of more than 12 years. With this transaction, Jor-Mac is acquiring a strong local competitor with significant manufacturing capabilities, a proven management team, and additional automation and powder coating services. The combination expands both companies’ production facilities and industry knowledge that will improve workflow and efficiency while reducing downtimes.
“We’ve spent years building close relationships with our customers by serving as a trusted partner for their metal fabrication and assembly needs. By combining with Muza, we’ll be able to grow our expertise and service offerings while reaching an even wider range of OEMs. We’re thrilled to partner with both NewSpring and Muza to continue elevating our business to new heights."
Jor-Mac is led by a growth-oriented leadership team
“The entire team at Jor-Mac has done a tremendous job growing the company by providing industry-leading metal fabrications and assemblies to a wide range of OEMs. The acquisition of Muza will accelerate the company’s continued growth by opening new doors to additional customers. The cultural and operational overlap will allow for an easy transition, and we’re excited to see what these two businesses can accomplish together.” – NewSpring General Partner Greg Barger