Marwit Capital Announces Investment in Arc Machines
Newport Beach, CA – January 17, 2008 – Marwit Capital Partners II, L.P. announced today that it has recapitalized Arc Machines, Inc. (“AMI”) in partnership with the company’s founders, M.E. Gedgaudas, L.V. Reivydas and K. Fukumoto, and senior management team. AMI’s three founders will retain significant ownership in the company alongside Marwit and will remain actively involved in the business, which will continue to be led by its current senior management team.
“Arc Machines is a classic example of an entrepreneurially founded company that, through continual product innovation over three decades, has established itself as the worldwide market leader in automated orbital welding,” said Matthew Witte, Marwit Managing Partner. “AMI’s machines are used by a blue chip list of customers around the world in a number of high growth industries including nuclear, power generation, biopharmaceutical, aerospace and semiconductor and we are thrilled to have the opportunity to participate in and support the expansion of the company’s distribution and product and service offerings,” Mr. Witte added. “AMI’s market position, customer loyalty, engineering capabilities and excellent worldwide reputation make it one of the most compelling investment opportunities we have seen,” added David Browne, a Principal of Marwit. “The company has numerous prospective avenues for growth, both domestically and internationally, and we will be actively collaborating with management to immediately begin capitalizing on those opportunities.”
“Marwit’s well-established expertise in working with entrepreneurial companies and their owners has been instrumental in enabling AMI to achieve this important milestone in the company’s 30 year history,” commented David Sherrington, who has led AMI’s senior management team since 2005. “We look forward to working with Marwit to continue building on AMI’s position of global leadership in automated orbital welding systems,” he continued.
Headquartered in Pacoima, California, Arc Machines is the leading worldwide developer and manufacturer of automated orbital welding systems, including power sources, weld heads, arc zone vision systems and related accessories. Marwit’s investment in AMI will facilitate expansion into new markets, accelerate development of new products and services, and further extend AMI’s longstanding position as the market leader in automated orbital welding. Further information is available at www.arcmachines.com.
About Marwit Capital
Marwit invests in lower middle market “micro cap” businesses that are leaders in niche markets, have revenues of $15 to $125 million, EBITDA of $3 to $15 million, and enterprise values generally less than $75 million. In all instances, Marwit partners with experienced CEO Partners and management teams that invest alongside the Fund, and actively collaborates with them to create value. The firm specializes in management buyouts, platform LBO acquisitions in partnership with experienced industry executives, recapitalizations, and later stage growth and expansion investments. Marwit generally invests $10 to $30 million of equity capital per Portfolio Company, in one or a series of investments, and has invested more than $250 million since 1995. MCP II completed its final closing on August 15, 2007 at $183 million of committed capital.