Business News
American Industrial Partners Announces Acquisition of Mark Andy Inc.
Friday 10. October 2008 - Acquires World's Leading Designer of Narrow and Mid-Web Flexographic Equipment
American Industrial Partners Capital Fund IV, L.P. (“AIP”) today announced that its newly formed company AIP-MAI Holdings, LLC has acquired Mark Andy Inc. (“Mark Andy” or the “Company”) from Morgenthaler Partners. Mark Andy is the world’s leading designer of narrow and mid-web flexographic equipment and aftermarket products serving the label, packaging and specialty printing markets. AIP is an operationally focused private equity investment firm that applies a collaborative approach with management in building and improving middle-market companies.
After 62 years of technology and product innovation, Mark Andy is today the leading global flexographic label press manufacturer. Approximately 5,000 Mark Andy machines are currently installed, with a replacement value of over $1 billion. Mark Andy equipment sales are driven by global non-discretionary consumer spending trends, particularly food, toiletries and healthcare. Recurring and growing aftermarket revenue represent over 25% of Mark Andy sales.
Mark Andy is headquartered in St. Louis, Missouri with a second manufacturing location in Cincinnati, Ohio where its Comco brand machinery and UVT curing systems are produced. The Company maintains sales and demo offices throughout the world.
“Mark Andy represents a very attractive portfolio investment for AIP. The Company’s 62 years of experience have established it as the leading global player in narrow and mid-web flexographic equipment. Mark Andy’s leading market positions combined with attractive end-market growth, proprietary technology, and strong management team fit all aspects of the criteria we seek in a portfolio investment,” said Derek Leck, a partner of American Industrial Partners. “Mark Andy’s management team has established a strong track record of growth and accomplishment with strong relationships among its customers. We are confident our partnership can further accelerate the global growth and profitability of this vibrant business.”
Paul Brauss, CEO of Mark Andy, said, “Growing aftermarket business and new demand in emerging markets such as India, China and Eastern Europe will continue to drive progress at Mark Andy. We look forward to partnering with the American Industrial Partners team, and have charted a strong future operating agenda focused on developing new and leading technology, expanding our aftermarket business, customer support, emerging market penetration and synergistic acquisitions. The Mark Andy team is very pleased to be part of the ownership group.”
Said John Lutsi, a partner at Morgenthaler Partners, “The management and employees of Mark Andy are exceptional, and we are very proud of our association with them. Customers around the world can expect this team to continue delivering best-in-class technologies and service.”
American Industrial Partners partnered with management in this transaction. Lenders to the transaction include GMAC Commercial Finance and John Hancock.