BlackArch Partners Advises on Sale of Machine Laboratory

Machine Lab formerly was a portfolio company of Tech Investments. BlackArch was retained to serve as exclusive financial adviser on the sale of the company. Tech Investments will retain a partial interest and Machine Lab CEO Matt Duffield will continue to lead the company under Milestone’s ownership.

Headquartered in the Kansas City suburb of Lenexa, Kan., Machine Lab manufactures components for the various industries it serves to tolerances of less than one micron (one-seventieth of the diameter of a human hair). The company is a strategic supplier to many of the customers it serves.

Terms of the transaction were not disclosed.

“I am pleased to have the opportunity to partner with Milestone for the next chapter of our growth,” Duffield said. “This opportunity was made possible by the extraordinary BlackArch team. Their unique approach to the process provided our management team with the right partner for our future.”

The sale was led by BlackArch bankers Gordie Vap, Bram Hall and Sean Whiteley. Vap heads the firm’s Aerospace, Defense & Government Services practice.

“Machine Laboratory has developed defensible, attractive niches in the business sectors it serves,” Vap said. “The company’s design and engineering capabilities have facilitated revolutionary, cost-effective improvements in its business sectors while increasing the effectiveness of the end products.”

Founded in 1996, Kansas City-based Tech Investments (www.ti-kc.com) focuses on finding proprietary investments within contract manufacturing in various industries. Tech Investments delivers value to its members and management teams through the execution of a proven and disciplined operational model.

Milestone Partners (www.milestonepartners.com) is a Philadelphia-based private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of lower middle-market businesses. Milestone pursues successful niche-market leaders that provide high-margin products or services. Milestone’s transactions typically provide liquidity to shareholders of privately-owned businesses, facilitate the transition of ownership to key managers and allow management to capitalize on growth opportunities, while maintaining the legacy of the founders.

BlackArch Partners is a leading middle-market investment bank offering a full spectrum of advisory services. The firm offers a complete suite of investment banking services to Financial Sponsors, Private Companies and Diversified Corporations, including dedicated industry verticals for Aerospace, Defense & Government Services, Transportation & Logistics and Industrial Growth & Diversified Manufacturing. Based in Charlotte, N.C., BlackArch features a total of 12 industry-focused practices that cover all sectors of interest to middle-market investors; BlackArch professionals have closed over 250 deals in 16 countries on four continents. Please visit our website, www.blackarchpartners.com, for more details.

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