CORE Industrial Partners has formed Incodema Holdings to acquire sister-companies Incodema, a sheet metal services provider, and Newchem, a provider of photochemical etching services.
Incodema provides sheet metal cutting and forming services including laser, micro waterjet, stamping, and welding.
The company has capabilities with aluminum, steel and stainless steel, copper, brass, bronze, and other exotic metals. Incodema was founded in 2001 and is headquartered in Ithaca, New York.
Newchem (DBA Newcut) is a provider of photochemical etching services on a range of metals including aluminum, copper, beryllium, steel and stainless steel, and other exotic metals such as Inconel 625 (a nickel-chromium-based alloy). The company’s services are used in the manufacturing of encoders, EMI/RFI shields, screens and filters, shims and washers, and metal signage that are used in the aerospace, automotive, architectural, decorative, electronics, medical, dental, and military sectors. Newcut was founded in 1970 and is headquartered near Rochester in Newark, New York.
“On behalf of employees at both Incodema and Newcut, we’re excited to begin this new chapter,” said Sean Whittaker, the CEO and founder of both Incodema and Newcut. “For decades, Incodema and Newcut have successfully married industry-leading capabilities with a customer-centric orientation that allows us to devote attention to every one of our valued clients. Now, with CORE’s support, we’ll be able to expedite our exciting growth initiatives while preserving our outstanding customer service.”
“Our investments in Incodema and Newcut underscore CORE’s continued desire to not only invest in advanced digital manufacturing firms that align with Industry 4.0 fundamentals, but also to do so in partnership with founders and family owners,” said John May, managing partner of CORE. “We believe access to CORE’s network and resources will prove highly impactful in both augmenting the company’s existing operations and adding new capabilities and geographic reach.”
CORE makes control investments in companies that have revenues of up to $200 million, EBITDA of up to $20 million, and enterprise values up to $150 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors. In February 2019, the firm held a final close of CORE Industrial Partners Fund I LP with total commitments of $230 million. The new fund was significantly oversubscribed with demand in excess of the initial target of $200 million and initial hard cap of $225 million. CORE was founded in 2017 and is headquartered in Chicago.
“The company’s differentiated technical capabilities and demonstrated track record of effectively transitioning from prototype to production with a leading customer base are especially compelling drivers of our investment,” said Matthew Puglisi, a partner at CORE. “We are looking forward to working with the Company’s talented management team to execute on a variety of near-term, transformational growth opportunities.”
Stifel’s technology group was the financial advisor to Incodema and Newcut.
Private Equity Professional | July 31, 2020
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