Grey Mountain Partners has announced a majority equity investment in BoltTech Mannings, a portfolio company of PNC Mezzanine Capital that was acquired in 2007 via a $20 million investment. The company provides technical bolting as well as heat treating services and products for industrial applications. Grey Mountain says that they intend to grow the company both organically and acquisitively.
Industrial supplies & parts companies like BoltTech have been gaining the attention of private equity firms since the start of the recession. According to the PitchBook Platform, there have been 41 private equity investments in the sector over the past 18 months, compared to 23 from the previous 18 months. Most of the deals in the sector have been relatively small with the largest deals being Kenner & Company's $325 million acquisition of Pace Industries and Arlington Capital Partners $197.3 million buyout of Consolidated Precision Products. With increased manufacturing deal flow, some PE investors appear to believe that this downtrodden sector of the US economy is once again a good play for the long-term.