09/02/2020

Tecum Capital Announces Local Investment to Support Accelerated Growth in F&S Tool in Partnership with Family Ownership and NewHold Enterprises

Tecum's Precision Manufacturing Portfolio Grows With Investment in F&S Tool, Inc.

Pittsburgh, Pennsylvania – Tecum Capital Partners (“Tecum”) is proud to announce its newest investment in F&S Tool, Inc.  (“F&S” or the “Company”).  Tecum partnered with NewHold Enterprises, LLC (“NewHold”) to support the second-generation leadership group, Mike and JD Faulkner, in the Company’s next stage of growth to further support the needs of their global, blue-chip customer base.  F&S is an innovation leader in the design and manufacture of high-output precision tooling.

Founded in 1983, F&S is a family owned and operated manufacturer of precision tooling.  F&S specializes in high-output, high-efficiency injection, and compression molds.  The company excels in the most complex mold designs, including Stack and Cube Molds with high-cavity applications that produce volume products and with industry leading (short) cycle times.  F&S operates out of a 90,000 square foot facility located on the shores of Lake Erie in Erie, Pennsylvania, USA.

“F&S has built a reputation of outpacing our competition through innovation and virtual engineering, producing precise, highly reliable, durable, fast-cycling molds that deliver a superior return on investment to customers,” said JD Faulkner, CEO of F&S.  “These areas helped F&S experience tremendous growth within the medical and packaging markets.  The primary goal of our dedicated team is to solve custom problems, and this new partnership allows us to access broader experience and capital to help support our continued growth.”

“We feel very fortunate to be partnering with F&S at an inflection point in the businesses’ evolution, and for domestic manufacturing more broadly, where we see more complex areas of the critical supply chain coming back home,” said Kevin Charlton co-chairman of NewHold.  “For various reasons, the F&S value proposition is more relevant than ever, and we look forward to supporting the company’s growth through this period and beyond.”

Stephen Gurgovits, Jr., Managing Partner of Tecum, stated, “F&S represents another opportunity to partner with a passionate and proven management team, alongside an experienced sponsor right in our back yard in an industry we know well.  Mike and JD’s commitment to the Company and its employees highlights the partnership mentality we look for in our management teams.”  Matt Harnett, Partner of Tecum, added, “The historical durability of the business, along with the current organic growth trajectory and industry tailwinds, gets the team excited.  There is an impressive amount of industry knowledge around this business across the management team, investor group, and our operator network.  We look forward to leveraging these resources into sustainable growth and continued success.”

The Deal Team from Tecum consisted of Matt Harnett, Sean Edmonson, and Ian Frazier.

East West Bank in partnership with First Commonwealth Bank provided senior debt financing.

Fidus Partners provided debt advisory services to the investor group in support of the transaction.

ABOUT TECUM CAPITAL
Tecum Capital Partners is an independent investment firm based in Pittsburgh, Pennsylvania with over $750 million in assets under management.  Tecum is a multi-strategy investor and is currently investing out of its second SBIC Fund.  The investment team partners with independent sponsors, family offices, business owners seeking succession plans, and management teams to create shared success.  Since 2006, Tecum’s investment professionals have invested in over 80 platform and add-on acquisitions.  Tecum specializes in growth-oriented, middle market companies across the broader high-value manufacturing, value-added distribution, and business service sectors, with a focus on businesses with EBITDA greater than $2 million.  Tecum seeks to invest $5 million to $20 million in potential portfolio companies.  For more information, please visit www.tecum.com.

ABOUT NEWHOLD ENTERPRISES, LLC
NewHold is a long-term investment holding company and direct investment platform supporting middle market firms through capital investment and industry experience. Established in 2017, NewHold operates through platforms which are built through acquisitions and organic growth of middle market industrial and services companies. NewHold’s investors consist primarily of family offices, seeking long-term capital appreciation through ownership and growth of middle market, industry leading companies. Learn more at www.newholdllc.com.  

ABOUT F&S TOOL, INC.
Founded in 1983 and headquartered in Erie, Pennsylvania, F&S Tool, Inc. specializes in high-output, high-efficiency injection, and compression molding applications with two – six million cycles expected per year. The Company excels in the most complex mold designs, including Stack and Cube Molds with high-cavity applications that produce volume products with industry leading cycle times. For more information, please visit www.fs-tool.com.