Dallas — Align Capital Partners has announced the recapitalization and acquisition of New Hampshire-based manufacturer Marco Rubber & Plastics.
Terms of the deal were not disclosed.
Marco is a specialty distributor of elastomer components including O-rings and gaskets. It serves a variety of end markets including the aerospace, medical, semiconductor and chemical sectors.
Per a description by Align: Marco's experienced team developed the company's proprietary technology platform to link a global supply network, representing more than 3,000 material formulations, more than a million SKUs, and custom products to provide fast and cost-effective service to customers around the world. Last year, Marco unveiled the first phase of a disruptive e-business technology platform, allowing engineers to search and compare products by performance attributes, effectively digitizing the consultative sale process and allowing for direct online ordering.
Align's acquisition marks Marco's first injection of institutional capital since its founding in 1980. The investment will support sales and marketing functions and its "innovative" technology platform, according to the firm. Align indicated it will also be in the market for add-on deals for Marco to support a buy-and-build strategy that will augment its product offering and distribution footprint.
"Marco creating a technology platform unique to the sealing products market is helping rationalize the industry's fragmented supplier and customer bases by reinventing the way O-rings and sealing components are purchased," Align managing partner Chris Jones said in a statement. "We are thrilled to partner with such a dynamic team and execute on Marco's many growth opportunities."
Align has been on a buying spree lately, with the Marco deal being its fourth so far in 2020.
The firm recently closed its second investment fund at $450 million, 12.5 percent higher than its target size of $400 million.
Something there seems to be going right. While regulations keep PE firms from publicly discussing most details of fund performance, a spokesperson for Align said average revenue of the firm's eight platform companies has more than doubled in their first two years with Align.
The firm turns 4 years old this year.
Align looks for niche manufacturing, distribution and business service companies with less than $10 million in EBITDA or with enterprise value of less than $150 million.