ARCH Global Precision, LLC (“ARCH”) on April 19, 2021, announced that its majority shareholder, The Jordan Company, L.P. (“TJC”), and ARCH have reached a definitive agreement to sell ARCH Precision Components Corp. (“ARCH PC”) to funds affiliated with Madison Dearborn Partners, LLC (“MDP”). Terms of the transaction were not disclosed.
“We are pleased to have found the ideal new home and investment partner for the ARCH PC business,” said Eli Crotzer, President and Chief Executive Officer of ARCH who, upon completion of the transaction, will also join the Board of Directors of the new ARCH PC standalone company. “MDP understands ARCH PC’s business, its customers and the markets it serves, and I am confident that ARCH PC will continue to grow as a newly-independent company. I’m excited for ARCH PC’s next chapter and look forward to helping ARCH PC remain the most innovative precision-machine components manufacturer in its served markets while remaining true to its values, culture and steadfast commitment to its customers.”
ARCH PC is a leading producer of precision-machined components for world-class manufacturers in the aerospace and defense, transformative technologies and industrial markets. As a standalone company, ARCH PC will pursue a customer-centric growth strategy focused on investing in its capabilities, capacity and people to provide best-in-class service to customers in its specific end markets. Upon completion of the transaction, ARCH, with the ongoing support of TJC, will consist of its remaining two segments, ARCH Medical Solutions and ARCH Cutting Tools.
Andy Spiering, ARCH PC’s Divisional President who, at the completion of the transaction, will become Chief Executive Officer of ARCH PC, commented: “I am proud of the platform we’ve built and grateful for the support we’ve received from TJC. I’m also thankful for the ongoing support of our customers and employees and am excited for our future as an independent company that has the support of an experienced industrial investor like MDP. ARCH PC will be focused on continuing to deliver high-quality and industry-leading components to our customers. This ever-sharper focus should accelerate our growth and help us provide more opportunities to our employees.”
Drew Macha, a Director with MDP’s Basic Industries team, said: “Eli, Andy and the entire ARCH team have created a tremendous precision components business with an unwavering commitment to customer excellence. We look forward to building upon this strong foundation and helping ARCH PC expand its industry-leading capabilities in its dynamic and rapidly growing end-markets. Critical to this effort will be our support of the innovative and collaborative culture at ARCH PC, which we believe drives customer and employee success.”
“ARCH PC has numerous growth opportunities ahead, and we look forward to supporting the team by bringing to bear our industrial investment expertise,” said Rich Copans, a Managing Director with MDP’s Basic Industries team. “We’re excited to partner with Andy and the ARCH PC leadership team and Board to help continue ARCH PC on its upward trajectory as a standalone business.”
“We’re proud of the success ARCH PC has had under our ownership,” said Mike Denvir, a Partner at TJC. “This transaction validates the team’s hard work over the past few years and positions ARCH PC and the remaining business segments within ARCH for continued success moving forward. We’re excited to continue our successful investment partnership with Eli and his team as we work to extend ARCH’s growth well into the future.”
Completion of the transaction, which is expected to occur in the second quarter of 2021, is subject to the satisfaction of customary closing conditions. Lincoln International is serving as financial advisor and Winston & Strawn LLP is providing legal counsel to ARCH. Kirkland & Ellis LLP is serving as legal advisor to MDP.
About ARCH Global Precision, LLC
ARCH, based in metro Detroit, manufactures precision-machined components, medical instruments and implants and consumable cutting tools for a range of critical applications. ARCH has dozens of facilities strategically located across the country serving the aerospace and defense, medical, surgical robotics, transformational technologies and industrial markets, among others. The teams at ARCH are metalworking professionals with industry-leading tight-tolerance manufacturing expertise. ARCH provides innovative and practical solutions to the complex manufacturing challenges of its customers.
About Madison Dearborn Partners, LLC
MDP is a leading private equity investment firm based in Chicago. Since MDP’s formation in 1992, the firm has raised aggregate capital of over $27 billion and has completed over 150 investments. MDP invests across five dedicated industry verticals, including basic industries; business and government software and services; financial and transaction services; health care; and telecom, media and technology services. For more information, please visit www.mdcp.com.
About The Jordan Company, L.P.
TJC (www.thejordancompany.com), founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $14 billion since 1987 and a 39-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Industrials, Transportation & Logistics, Healthcare & Consumer and Technology, Telecom & Utilities. The senior investment team has been investing together for over 20 years and is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. Headquartered in New York, TJC also has an office in Chicago.