Milwaukee-based private equity firm Generation Growth Capital (GGC) has acquired three Midwestern manufacturers as part of the launch of its newly formed metal manufacturing platform, called American Consolidated Metals.
The first company acquired by Generation Growth Capital is West Bend-based Federal Tool & Engineering. The company provides metal stamping, metal fabrication and manufacturing engineering services.
Last month, an affiliate of GCC sold the Federal Tool & Engineering building at 2150 Stonebridge Road to an affiliate of Three Leaf Partners for $3.75 million. The manufacturer still operates in the building.
“Generation Growth Capital was the perfect buyer for us after running a competitive sale process and speaking with numerous firms. They really understand manufacturing and could see the value in the company that we methodically have built over the past 18 years,” said David Tomczek, owner of FTE. “We believe that with GGC’s support and resources, they can accelerate our growth, invest in cutting-edge technology and deliver even greater value to our customers.”
Generation Capital Growth also acquired Isanti, Minnesota-based BP Metals and Rockford, Illinois-based Rockford Specialties. Both firms are metal fabrication companies. The acquisitions will not result in immediate changes to the companies’ day-to-day operations.
“Bringing Federal Tool & Engineering, BP Metals and Rockford Specialties under the banner of American Consolidated Metals is an exciting development for all of us,” said John Reinke, managing director at GGC. “By focusing our investment on three manufacturers with broad capabilities and diverse customer bases, we are looking to build a collaborative platform that provides a one-stop solution for original equipment manufacturers looking to expand domestic supply. This strategic partnership should result in shared resources, equipment, and technology, resulting in improved efficiency and expanded capacity and market share.”
GGC also announced this week the hiring of Igor Zelenovskiy, who will lead the firm’s American Consolidated Metals platform as its president. He has more than 20 years of experience as an executive for global manufacturers including Tailored Label Products, Fisher Barton, Rexnord, Komatsu Mining and Rockwell Automation.
