GGC Acquires Innovative Laser Technologies, Inc.
FOR IMMEDIATE RELEASE
Milwaukee, WI – March 13, 2014 Generation Growth Capital, Inc. (“GGC”), a private equity firm that invests in lower middle market companies, announced today that it has acquired Innovative Laser Technologies, Inc. (“ILT”).
ILT is a Minneapolis, Minnesota-based designer and fabricator of custom laser workstations used to produce high-value, mission-critical components for numerous industries, including medical device, defense, energy and aerospace. ILT works closely with its customers to develop a custom laser solution that will perform within exact specifications and tolerances. Each ILT system incorporates proprietary control software that allows customers to conform to rigorous regulatory testing and validation programs. ILT has a reputation for quality, flexibility and innovation, and most of the leading medical device OEMs and many fortune 500 companies are customers.
The existing management team of ILT will continue operating the business following the transaction. GGC expects to make significant additional investments in the business to support future growth and implement operational best practices.
“GGC really understands the nature of our business. They recognize the value that we bring to our customers through technical expertise, service, and support. Throughout the transaction process GGC recognized the key areas of our business and will provide needed resources to continue to professionalize our company. I look forward to working with GGC to continue ILT’s strong growth,” remarked Fred Tsuchiya, President and CEO of ILT.
John Reinke, a Managing Director of Generation Growth Capital, commented, “ILT has solidified a niche in the custom laser workstation market and through our diligence process we learned that their customers really value the capabilities that ILT possesses. We plan on investing in new systems, processes and people to help manage the growth that the company is experiencing.”
Cory Nettles, a Managing Director of Generation Growth Capital, added, “The founders of ILT did a great job of growing the company from scratch, building the solid reputation that the company enjoys in its markets today. We’re excited that they will continue to be partners with us going forward. We continue to be bullish on niche domestic manufacturing and companies that touch certain aspects of the healthcare industry.”
Generation Growth Capital invests in small businesses to support a broad range of growth opportunities and ownership transitions. By partnering with solid management teams, GGC adopts a proactive, collaborative approach that builds the businesses in which they invest.
Senior financing was provided by Minnesota Bank & Trust and mezzanine financing was provided by Exmarq Capital Partners, Inc. Terms of the transaction were not disclosed.
About Generation Growth Capital Fund II, LP
Generation Growth Capital Fund II, LP is a Milwaukee-based private equity firm focusing on investments in small businesses to support ownership transition and growth opportunities. Generation Growth Capital funds now have investments in ten portfolio companies. ILT represents GGC’s third investment in a Minnesota-based business. Please visit www.generationgrowth.com for more information.
About Innovative Laser Technologies, Inc.
Innovative Laser Technologies, Inc. is a Minneapolis, Minnesota-based designer and fabricator of custom laser workstations used to produce high-value, mission-critical components for numerous industries, including medical device, defense, energy and aerospace. Please visit www. iltinc.com for more information.
Contacts
On behalf of Generation Growth Capital Fund II, LP:
John Reinke, Managing Director
Generation Growth Capital, Inc.
jreinke@generationgrowth.com | (414) 291-8915
Cory Nettles, Managing Director
Generation Growth Capital, Inc.
cnettles@generationgrowth.com | (414) 291-8920