Middle market private equity firm American Industrial Partners (AIP) and private markets investment manager Partners Group have sold Micro-Poise Measurement Systems to AMETEK for USD170m in cash.
Micro-Poise, headquartered in Ohio, is the world’s largest provider of integrated test and measurement solutions for the tyre industry in both developed and emerging markets.
AIP and Partners Group teamed to acquire Micro-Poise from Illinois Tool Works in April 2007.
The company’s test and measurement products are used to measure the balance, uniformity, and geometry of both tyres and tyre and wheel assemblies. Micro-Poise operates four manufacturing facilities in the US, Europe, and China with over 330 employees worldwide.
"Micro-Poise is yet another instance in which our firm successfully partnered with company management to establish industry leading operating performance and a highly attractive investment outcome," says Eric Baroyan, a partner at AIP. "Through aggressive new product development, strategic acquisitions, expanding the company’s Asian footprint, and improving manufacturing and supply-chain efficiencies, the engineers and operators who comprise American Industrial Partners, together with Micro-Poise management, approximately doubled EBITDA over the course of our ownership."
AIP earned a 5.8x gross multiple of money and a 36 per cent gross IRR on its invested capital in Micro-Poise.
David Layton, a senior investment manager with Partners Group, says: "Micro-Poise is the latest success story from our global mid-market portfolio. Our strategy has been to identify regionally focused mid-market companies that have significant potential to grow and expand internationally – and to leverage Partners Group’s global platform to help achieve that growth. Over the past several years, Micro-Poise has successfully grown its sales in Asia at an annualised growth rate of approximately 25 per cent."
Morgan Stanley served as the financial adviser and Patton Boggs served as legal counsel to AIP and Partners Group.
