Milwaukee-based private equity firm Generation Growth Capital Inc. has sold portfolio company Innovative Laser Technologies Inc. to Oxford, Massachusetts-based IPG Photonics Corp. for $40 million in cash.
Minneapolis-based Innovative Laser designs and manufactures laser-based systems that are used to manufacture medical device components.
IPG supplies laser sources to ILT, which counts leading medical device manufacturers and Fortune 500 firms among its customers.
“ILT was a great investment for GGC and it was a pleasure working with their talented team to position the company for continued success. ILT represents another great example where we were able to help unlock a small company’s potential with GGC’s organizational development model,” said John Reinke, managing director of GGC.
GGC acquired Innovative Laser in 2014 using its second fund, Generation Growth Capital Fund II LP. Now that it is raising its third fund, this time totaling $50 million, GGC is selling off some of its older portfolio companies to make room for new ones.
“The sale of ILT represents our third portfolio company exit in the last several months,” said Cory Nettles, managing director of GGC. “We are very pleased with the overall performance of our fund. These exits gave us significant momentum into the launch of our third fund, where we are continuing to see strong investment opportunities.”