News Column

Yukon Supports May River Capital and Hi-Tech Holdings in its Acquisition of Global Contract Manufacturing

May 22, 2014

MINNEAPOLIS--(BUSINESS WIRE)-- Yukon Partners (“Yukon”) announced today that it has supported Hi-Tech Holdings, LLC (“Hi-Tech”) in its add-on acquisition of GCM Medical and OEM, Inc. and Global Contract Manufacturing (HK) Limited (collectively known as “GCM”). Hi-Tech is a current portfolio company of Yukon that is led by May River Capital, LLC (“May River”), a Chicago-based private equity investment firm. The investor group included May River, the Pohlad family, and Yukon in partnership with the senior management teams of Hi-Tech and GCM.

GCM is a preferred supplier of contract manufacturing services to leading OEMs in the medical, industrial, transportation, and aerospace sectors. GCM is headquartered in Union City, California, with a second facility in Dongguan, China. Hi-Tech, headquartered Schiller Park, Illinois, is a manufacturer of low-to-medium volume, highly engineered, precision machined components and assemblies for the energy, medical, scientific laboratory, and diversified industrial markets. As a combined entity, 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 square feet of manufacturing space across three facilities in North America and China.

Seamus Meagher, President of GCM, 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.”

Tim Weaver said, “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, 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.”

“Tim Weaver and May River have done an excellent job in managing and growing the Hi-Tech business, and Yukon has greatly appreciated their efforts. With the addition of GCM and the expertise offered by Seamus Meagher, Hi-Tech will have enhanced operational capabilities, as well as customer and end market diversification. Yukon looks forward to continuing its strong partnership with management and the investor group, and we know that each will continue to work together to drive the Company’s growth in the coming years,” said Bill Dietz, a Managing Partner at Yukon.

“Yukon has played a key role in our march toward the original long term goals we set out for this investment. At every turn, their ability to focus clearly on key drivers and to quickly support Hi-Tech in taking advantage of meaningful opportunities has made a tangible impact on the overall trajectory of the business. We simply could not have asked for better partners than Yukon,” said Dan Barlow, May River Partner.

About GCM

Headquartered in Union City, California, 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. 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 China. For more information on GCM, please visit www.gcmfg.com.

About Hi-Tech Manufacturing

Hi-Tech is a world class manufacturer of low-to-medium volume, mission-critical precision machined components and assemblies. The Company is regarded as the preferred contract manufacturer for its customer’s most critical, tight tolerance and difficult to manufacture components. These components and assemblies are used in deep sea and land-based drilling rigs and production equipment, oil and gas exploration systems, medical imaging equipment, blood and urine analysis systems, power grid applications, automated industrial machinery, and other sophisticated applications. Yukon Partners supported May River and the Pohlad Family in the acquisition of Hi-Tech in July 2012. For more information on Hi-Tech, please visit www.hi-tech-mfg.com.

About Yukon Partners

Yukon Partners is an independent and unaffiliated mezzanine finance firm primarily serving middle market private equity sponsored business transactions with a typical investment range of $10 to $40 million in the U.S. and Canada. The transactions in which Yukon invests include buyouts, growth and platform strategies, recapitalizations, mergers/acquisitions, public-to-private buyouts, and refinancings. Yukon Partners is based in Minneapolis, Minnesota. For more information, please visit www.yukonpartners.com.

About May River Capital

May River is a private equity investment firm that seeks to invest its own capital, as well as partner with like-minded equity co-investors, in high quality businesses with excellent management teams and the potential for significant growth and value enhancement. May River was founded in January 2012 by three partners with over 40 years of principal investing experience. May River invests in partnership with family offices, mezzanine funds, co-invest funds, industry executives, and high net worth individuals. For more information on May River, please visit www.mayrivercapital.com.

About the Pohlad Family

The Pohlad family is comprised of diverse businesses that employ more than 2,500 across the U.S. Founded by Carl R. Pohlad in the 1950s and now managed by his three sons Jim, Bob and Bill, the more than 25 businesses operate in financial services/banking; commercial real estate; automotive sales; sports and entertainment, including the Minnesota Twins, a Major League Baseball franchise; and investments in privately held companies. In addition to their business interests, the Pohlad family has a long history of community involvement and charitable giving through the Pohlad Family Foundation and its operating businesses, giving more than $110 million since 1993. For more information on the Pohlad family, please visit www.pohladcompanies.com.




Yukon Partners

Michael Hall, Managing Partner, 612-435-7802

mhall@yukonpartners.com

or

Bill Dietz, Managing Partner, 612-435-7804

wdietz@yukonpartners.com

Source: Yukon Partners


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