MCM Capital Exits Portfolio Company RMB Products
MCM Capital Partners (“MCM”), a lower middle market private equity fund, is pleased to announce the sale of RMB Products (“RMB”), a precision manufacturer of highly engineered thermoplastic components utilizing rotational molding, rotational lining and 3D printing processes. RMB nearly doubled both revenues and EBITDA during our partnership, resulting in an attractive outcome for MCM, its shareholders and the RMB management team.
MCM acquired RMB in 2010 as part of its direct sourcing effort to acquire thermoplastic manufacturers possessing unique capabilities in processing highly engineered resins. The Company’s deep material, product and process development expertise positioned it to capitalize on lightweighting trends in the commercial and military aerospace industry as OEMs sought to increase fuel efficiency by replacing alloy components with lighter weight composites and plastics. These unique processing capabilities also provided opportunities in the defense, biopharmaceutical, semiconductor and chemical processing markets.
During our hold period, the RMB team grew its market share in several end markets, most notably commercial aerospace, where its proprietary resin is sole sourced for all rotationally molded aviation HVAC ducting. RMB also entered the biopharmaceutical and semiconductor markets with its innovative high purity containers and won several defense programs utilizing its 3D printing capabilities.
To facilitate this growth, RMB built out a well-rounded management team, specifically adding several talented financial and business development professionals. The Company also made significant capital investments to expand capabilities including new rotational molding equipment, 3D printing equipment, and building out a cleanroom to service the biopharmaceutical and semiconductor markets.
“It was very rewarding to be involved with the RMB team and see the company mature from an entrepreneurially managed job shop into a professionally run, strategically focused high value added business ready to capitalize on a number of its growth initiatives. We wish the team and its new owners continued success,” stated Mark Mansour, Senior Managing Partner at MCM Capital.
“MCM was extremely supportive of RMB’s growth initiatives, making continuous investments in both the human capital and equipment we needed to achieve our goals. We enjoyed the camaraderie and collaboration with MCM during our partnership and are excited about what’s next for the business.” Said Ryan Lengerich, Chief Operating Officer at RMB.
MCM Senior Operating Partner Harry Shimp, who led the management of RMB, added, “The sale of RMB Products marked the end of one of MCM Capital’s most interesting investments. Primarily a commercial aerospace company, RMB was successful because it was able to rapidly adapt to the dramatic swings in customer demand through product and market diversification. The credit for that that belongs to RMB’s management team and their focus on quality, delivery and communication.”
About MCM Capital Partners
Based in Cleveland, OH, MCM Capital is a lower middle market private equity fund focused on acquiring niche manufacturers, value-added distributors and specialty service businesses possessing significant competitive advantages and generating between $2-$6 million in EBITDA. MCM is actively seeking additional platform and add-on acquisition opportunities.
