December 23, 2016
Main Street Capital Holdings Announces Sale of the Hi-Rel Group
Successful Consolidation of a Leading Manufacturer of Highly Specialized Metal Component Solutions for the Microelectronic Packaging Industry
PITTSBURGH, PA – December 23, 2016 – Main Street Capital Holdings, LLC, a private investment firm specializing in acquisitions of growth-oriented companies, announced that it has sold the Hi-Rel Group, LLC to Hermetic Solutions, LLC, a portfolio company of Minneapolis-based ShoreView Industries. Hi-Rel is a leading manufacturer of precision metal component solutions for the hermetic microelectronic packaging industry. Terms of the deal were not disclosed.
Main Street acquired the Hi-Rel Group in April of 2013. “When we acquired the Company, it was a fundamentally sound and highly-respected group of three separate, family-run businesses located in three separate countries,” said W. Ryan Davis, a Partner at Main Street. “We knew there would be a tremendous benefit to consolidating the businesses strategically, functionally and operationally. We also saw an opportunity to professionalize the management team and upgrade the facilities, equipment and systems.”
“In our three years of ownership, we hired a highly-experienced management team and accomplished the key strategic initiatives required to transform the business. Once the foundation was in place, we focused on top-line growth. Hi-Rel improved their sales and marketing capabilities which strengthened relationships with their key customers. The result was strong financial performance and a company that is well positioned to generate future growth,” said Davis.
“We’re very proud of what we have been able to accomplish with Main Street during our tenure as owners,” said Richard L. Ferraid, President and Chief Executive Officer of the Hi-Rel Group. “Main Street supported us as we transformed the company from a family-owned business to a professionally managed, global organization. They provided us with the expertise and capital required to upgrade and expand the business, including the completion of a strategic add-on acquisition. Main Street was the right financial partner at this stage of Hi-Rel’s evolution.”
“Our past experiences in the industrial manufacturing industry, and more specifically in the specialty metals sector, helped us to recognize the potential at Hi-Rel,” said Dennis G. Prado, a Partner at Main Street. “This was an extremely complicated business when we acquired the company and I’m proud of our ability to work effectively with management to quickly execute on the key initiatives in our investment thesis. We invested capital to support future growth, upgraded the level of talent across the organization and created jobs. Additionally, the exit marks a tremendous outcome for Main Street, our investors and the Hi-Rel management team.”