– Tecum Capital Partners (“Tecum”) is proud to announce its newest investment in VfD Technologies, Inc. (“VfD” or the “Company”). Tecum partnered directly with the founding management team and ownership group to support the acquisition. Tecum sourced the opportunity through its relationship with FOCUS Investment Banking.
Founded in 2008, VfD is a technology intensive manufacturer that enables the world’s leading companies to bring their products to market. The Company excels in high-complexity, high-tolerance machining for medical, automation and robotics, and transportation applications. VfD is owned and operated by the founding management team, who will all remain with the Company in their current roles. With the recent acquisition, the Company manufactures in four operating locations across Eastern Pennsylvania.
“VfD has funded its prior acquisitions with management and board equity and prudent use of bank leverage. Acquiring Isimac was a major step for the company, requiring capital beyond our capacity based on internal resources and traditional bank debt. FOCUS introduced us to a number of subordinated and mezzanine debt providers, giving us good options to complete the process”, says Patrick Thornton, VfD CFO. “We chose Tecum in part because of their deep knowledge of precision manufacturing and as well as their Pennsylvania roots. It turned out to be a great choice. COVID19 disrupted the timing of the deal and Tecum stuck with us throughout, honoring their original commitment and overcoming the various obstacles we faced due to the pandemic.”
Regarding the Isimac acquisition, Beth Rothwell, President of VfD added, “The acquisition of Isimac significantly strengthens our capabilities in ultra-high precision medical devices and surgical instruments. Isimac’s capabilities expand VfD’s already strong position in medical devices, providing the basis for accelerated growth in the industry."
Stephen Gurgovits, Jr., Managing Partner of Tecum, stated, “VfD is an opportunity for Tecum to get back to its roots of backing experienced management teams. The VfD Team has a demonstrated track record of creating both organic and acquisitive growth opportunities while instituting operational excellence across the business units. Tecum is excited to support VfD’s next stage of development.” Regarding Tecum’s relationship with FOCUS, he added, “We value the FOCUS team’s nuanced advisory approach and its relationships with high-quality businesses across our core industries. We’re thrilled to work with them in support of VfD’s continued growth.”
The Deal Team from Tecum consisted of Stephen Gurgovits, Jr., Ian Frazier, and Paul Oris.
About Tecum Capital
Tecum Capital is a Pittsburgh, Pennsylvania based investment firm deploying private capital in lower middle market companies. Tecum provides mezzanine debt and equity investments in growth-oriented middle market companies across the broader high-value manufacturing, value-added distribution, and business services sectors, with a focus on opportunities that demonstrate strong long-term industry fundamentals, differentiated products or services, and identifiable secular growth tailwinds. Our team partners with independent sponsors, family offices, committed funds, business owners seeking succession plans, and management teams to create shared success. Tecum focuses on businesses with EBITDA greater than $2 million. Tecum seeks to invest $5 million to $20 million in potential portfolio companies. Tecum is a licensed Small Business Investment Company (“SBIC”) and is currently investing out of Tecum Capital Partners II, L.P, a $265 million fund launched in June 2017. Since 2006, the team has collectively invested more than $650 million in over 100 platform and add-on acquisitions. For more information, please visit www.tecum.com
About VfD Technologies, Inc.
Founded in 2008, VfD is a technology driven precision manufacturer that enables the world’s leading companies to bring their products to market. The Company excels in high-complexity, high-tolerance machining for medical device, automation and robotics, and transportation applications. Headquartered in Bethlehem, PA, VfD has 215 employees and operates in four manufacturing locations. For more information, please visit www.vfdtechnologies.com
About FOCUS Advanced Manufacturing & Automation
The FOCUS Advanced Manufacturing & Automation Team provides merger and acquisition and capital raising services to the U.S. advanced manufacturing industry, with a particular focus on privately owned service manufacturers and professional services organizations in precision machining and metalworking, additive manufacturing, electronics, medical devices, advanced materials and automation/Industry 4.0. FOCUS believes these firms provide the basis for a U.S. manufacturing resurgence that has been underway for some time but has been dramatically accelerated by COVID-19. These firms produce the components and technologies that enable U.S. manufacturers to compete effectively against ever-increasing global competition.