UNION PARK LAUNCHES, ACQUIRES TMI
Boston, MA – March 17, 2014. Union Park Capital, a Boston-based private equity firm focused exclusively on lower middle-market Industrial Technology investments, today announced both the formation of Union Park Capital I and the consummation of its first platform investment, Testing Machines Inc. (“TMI”). Union Park Capital I, a $102 million investment vehicle, held its first and final close in December 2013. The University of Texas Investment Management Company (UTIMCO) was the lead investor in the inaugural fund.
Union Park is headed by Morgan Jones. Prior to founding the firm, he spent 15 years at Battery Ventures where he was a senior General Partner, an owner, and a member of the firm’s four-member Executive Committee. At Battery, he created and led the Industrial Technology buyout practice which has delivered market-leading returns. “Over the past decade I’ve had the privilege to work with exceptional CEOs to create highly-profitable Industrial Technology companies built out of 20 separate acquisitions. Our results spoke for themselves and enabled us to raise a purpose-built fund to take advantage of this dynamic sector. Our pinpoint-focused strategy combined with our deal experience and a deep bench of operating advisors attracted a truly superb list of institutional and individual investors in our inaugural fund,” notes Morgan.
“Union Park presented a novel concept. They educated us on a unique market inefficiency in small cap buyouts within Industrial Technology, and presented a compelling ability to exploit it through proprietary sourcing, strong deal execution, and the application of a seasoned roster of operators. Their returns were hard to ignore,” says Mike McClure, Director, Private Markets, UTIMCO.
With the acquisition of Testing Machines, Inc., the Union Park Capital team will launch its first platform, named Industrial Physics, upon which it will drive both organic and inorganic growth. “The first platform is focused on materials and physical testing,” says Morgan. “It will likely be one of perhaps only two or three platforms in our maiden fund which we’ve deliberately designed to build a highly concentrated portfolio.”
“Working with Union Park restored my faith in private equity investors,” says John Sullivan, former CEO of Testing Machines, Inc. “They understood my business. I’ve spent a lifetime building this company, and they were the only investors I spoke with who gave me confidence they would treat it with respect, and grow it to a stature beyond my capability. They were trustworthy. No games, just guys who do what they say.”
Testing Machines will be led by a new CEO, Karl Boone, who was one of Union Park Capital’s operating advisors. “Karl is an exceptional talent,” says Morgan. “He led a prior investment of mine called Nova Technologies to a stellar return by driving both organic and inorganic growth and delivering dramatic improvements to the bottom line. You just don’t see that kind of operating talent every day. The purchase of Testing Machines allows us to bring together a great company and a great leader – we like our odds.”
ABOUT Testing Machines, Inc.
Testing Machines, Inc. (TMI) was founded in 1931 and is headquartered in New Castle, DE. TMI manufactures and markets materials testing instruments for the paper, pulp, film, foil, ink, coatings, nonwoven and corrugated industries. TMI has a network of sales offices and agents throughout the US and globally in over 50 countries. Its market leading brands include TMI, Fibro, Messmer Bűchel, Lako Seal Testers, TMI Trading (Shanghai) Co., Ltd., and Adamel L’Homargy and it holds #1 market positions in the measurement of friction, thickness, adhesion, and package seal testing. For more information, visit www.testingmachines.com.
About UTIMCO
UTIMCO is the first external investment corporation formed by a public university system and oversees investments for The University of Texas and the Texas A&M Systems. The nonprofit corporation is modeled after investment management companies formed by universities such as Harvard, Princeton, Stanford and Duke Universities to invest assets. UTIMCO oversees investments of the Permanent University Fund, the Permanent Health Fund, Long Term Fund, Intermediate Term fund and other assets. For more information, visit www.utimco.org.
About Union Park Capital
Union Park Capital is a private equity firm solely focused on lower middle-market Industrial Technology companies. Union Park takes a long term perspective to help stakeholders build value over time, and drives value creation through profitably growing a business, not financial engineering. Its flexible partnership approach can provide investment for any combination of ownership liquidity, internal growth initiatives, or acquisitions. For more information, visit www.union-park.com.
Union Park is headed by Morgan Jones. Prior to founding the firm, he spent 15 years at Battery Ventures where he was a senior General Partner, an owner, and a member of the firm’s four-member Executive Committee. At Battery, he created and led the Industrial Technology buyout practice which has delivered market-leading returns. “Over the past decade I’ve had the privilege to work with exceptional CEOs to create highly-profitable Industrial Technology companies built out of 20 separate acquisitions. Our results spoke for themselves and enabled us to raise a purpose-built fund to take advantage of this dynamic sector. Our pinpoint-focused strategy combined with our deal experience and a deep bench of operating advisors attracted a truly superb list of institutional and individual investors in our inaugural fund,” notes Morgan.
“Union Park presented a novel concept. They educated us on a unique market inefficiency in small cap buyouts within Industrial Technology, and presented a compelling ability to exploit it through proprietary sourcing, strong deal execution, and the application of a seasoned roster of operators. Their returns were hard to ignore,” says Mike McClure, Director, Private Markets, UTIMCO.
With the acquisition of Testing Machines, Inc., the Union Park Capital team will launch its first platform, named Industrial Physics, upon which it will drive both organic and inorganic growth. “The first platform is focused on materials and physical testing,” says Morgan. “It will likely be one of perhaps only two or three platforms in our maiden fund which we’ve deliberately designed to build a highly concentrated portfolio.”
“Working with Union Park restored my faith in private equity investors,” says John Sullivan, former CEO of Testing Machines, Inc. “They understood my business. I’ve spent a lifetime building this company, and they were the only investors I spoke with who gave me confidence they would treat it with respect, and grow it to a stature beyond my capability. They were trustworthy. No games, just guys who do what they say.”
Testing Machines will be led by a new CEO, Karl Boone, who was one of Union Park Capital’s operating advisors. “Karl is an exceptional talent,” says Morgan. “He led a prior investment of mine called Nova Technologies to a stellar return by driving both organic and inorganic growth and delivering dramatic improvements to the bottom line. You just don’t see that kind of operating talent every day. The purchase of Testing Machines allows us to bring together a great company and a great leader – we like our odds.”
ABOUT Testing Machines, Inc.
Testing Machines, Inc. (TMI) was founded in 1931 and is headquartered in New Castle, DE. TMI manufactures and markets materials testing instruments for the paper, pulp, film, foil, ink, coatings, nonwoven and corrugated industries. TMI has a network of sales offices and agents throughout the US and globally in over 50 countries. Its market leading brands include TMI, Fibro, Messmer Bűchel, Lako Seal Testers, TMI Trading (Shanghai) Co., Ltd., and Adamel L’Homargy and it holds #1 market positions in the measurement of friction, thickness, adhesion, and package seal testing. For more information, visit www.testingmachines.com.
About UTIMCO
UTIMCO is the first external investment corporation formed by a public university system and oversees investments for The University of Texas and the Texas A&M Systems. The nonprofit corporation is modeled after investment management companies formed by universities such as Harvard, Princeton, Stanford and Duke Universities to invest assets. UTIMCO oversees investments of the Permanent University Fund, the Permanent Health Fund, Long Term Fund, Intermediate Term fund and other assets. For more information, visit www.utimco.org.
About Union Park Capital
Union Park Capital is a private equity firm solely focused on lower middle-market Industrial Technology companies. Union Park takes a long term perspective to help stakeholders build value over time, and drives value creation through profitably growing a business, not financial engineering. Its flexible partnership approach can provide investment for any combination of ownership liquidity, internal growth initiatives, or acquisitions. For more information, visit www.union-park.com.