Baar-Zug, 23 October 2012
Partners Group, the global private markets investment manager, and American Industrial Partners (“AIP”), a middle-market private equity firm focused on acquiring and improving North American-headquartered industrial businesses, today announced the sale of Micro-Poise Measurement Systems, LLC (“Micro-Poise”) to AMETEK, Inc. (“AMETEK”) for USD 170 million in cash. Micro-Poise, headquartered in Streetsboro, OH, is the world's largest and most technologically advanced provider of integrated test and measurement solutions for the tire industry in both developed and emerging markets. American Industrial Partners and Partners Group teamed to acquire Micro-Poise from Illinois Tool Works, Inc. in April of 2007.
The Company's test and measurement products are used to measure the balance, uniformity and geometry of both tires and tire and wheel assemblies. Micro-Poise operates four manufacturing facilities in the US, Europe and China with over 330 employees worldwide. The Company's test and measurement technologies provide the industry's most accurate and repeatable measurements and fastest cycle times. These solutions are critical for its customers not only to ensure the highest levels of tire quality and performance, but also to improve its customers' overall profitability by increasing throughput and reducing scrap costs.
“Micro-Poise is yet another instance in which our firm successfully partnered with company management to establish industry leading operating performance and a highly attractive investment outcome" said Eric Baroyan, a Partner at American Industrial Partners. “Through aggressive new product development, strategic acquisitions, expanding the Company's Asian footprint and improving manufacturing and supply-chain efficiencies, the engineers and operators who comprise American Industrial Partners, together with Micro-Poise management, approximately doubled EBITDA over the course of our ownership." AIP earned a 5.8x gross multiple of money and a 36% gross IRR on its invested capital in Micro-Poise.
David Layton, a senior investment manager with Partners Group, commented, “Micro-Poise is the latest success story from our global mid-market portfolio. Our strategy has been to identify regionally focused mid-market companies that have significant potential to grow and expand internationally – and to leverage Partners Group's global platform to help achieve that growth. Over the past several years, Micro-Poise has successfully grown its sales in Asia at an annualized growth rate of approximately 25%.”
Steve Harris, Chief Executive Officer of Micro-Poise, said, "Micro-Poise has long been a highly-respected brand with a loyal global customer base. However, it was the support and commitment provided by AIP and Partners Group that enabled us to achieve the step change in product offerings, operating efficiency, and financial performance over the last few years. We greatly value our partnership with American Industrial Partners and Partners Group and the resultant success of our company. We look forward to continued growth under AMETEK."
Morgan Stanley served as the financial advisor and Patton Boggs, LLP served as legal counsel to AIP and Partners Group.