Platinum Group’s private equity fund has acquired the assets of G.C. Peterson Machinery.
The 80-year-old company distributes and services many brands of woodworking and plastics equipment for cabinet shops, technical schools, millwork companies, and other woodworkers.
The firm’s private equity fund, Platinum Group Holdings II, acquired the assets in a transaction worked out between the previous owners, who had been hurt by the severe recession within the housing industry and customers that have reduced their capital equipment spending.
The fund seeks majority positions in underperforming companies or those in critical transition in need of turnaround capital and management expertise.
"G.C. Peterson fits the portfolio profile of Platinum Group Holdings II as a privately held business that has fallen on hard times," says Dean Bachelor, chairman of Platinum Group. "We were able to step in during a critical transition point and provide a favorable outcome for all parties."
One of the former owners, Gerry McDonald, will continue with the company in a sales capacity and share his 38 years of machinery and industry knowledge with the new owners.
McDonald says: "Platinum has the resources and management experience to stabilize the company and establish the infrastructure for potential growth. In addition to my sales role, I am committed to making the transition as smooth as possible to meld Platinum’s management with our organization so that we may aggressively go after the market."
Platinum partner Bob Stewart has been appointed chief executive. His 25 years of business experience includes support of Platinum’s first three acquisitions and clients in need of turnaround expertise. His leadership background includes president of the Merchants’ Exchange in Minneapolis and management roles for Cargill. He is an attorney and certified public accountant.
The newly hired president is Allen Snyder, a financial consultant with the company for the past 18 months, who brings a 30-year background in banking and turnarounds of privately held businesses.
