Sussex Wire Announces Acquisition of Marox Corporation


Easton PA (May 2, 2017) - Sussex Wire, Inc. completed the acquisition of Marox Corporation, a family-owned manufacturer of high-quality, precision-machined orthopedic implants and aerospace components. Marox, based in Holyoke, MA, was founded in 1951.

Sussex Wire, headquartered in Easton, PA, has been in business since 1973. The company is an industry leader in the design, engineering and manufacture of custom components utilizing cold forming, cold heading and roll forming technologies, serving the medical device, healthcare consumables, aerospace, defense, consumer goods and electronics markets.

Recognizing Synergies and a Desire for Growth
“Driven by customer requirements, the acquisition of Marox represents an important step in Sussex Wire’s growth strategy to be a “one stop shop” for companies who have demanding applications for mission critical metal component parts,” stated Tim Kardish, Sussex Wire CEO. “Marox’s CNC Swiss Turning, CNC Milling and CNC Mill/Turn machining capabilities are a natural extension of Sussex Wire’s cold formed, roll formed and 4-slide capabilities.”

Marox will maintain separate operations while further diversifying Sussex Wire’s manufacturing capabilities and benefiting from access to Sussex Wire customer relationships.

Tim shared that he first engaged with the company after Argosy Private Equity’s Jack Nugent, Partner and Chairman of Sussex Wire, and Casey ‘O Rourke, Sr. Associate, approached Marox owners in December 2015. An LOI was issued in late 2016. While Marox had not been looking to sell, both sides quickly recognized synergies and developed a great comfort with one another. According to Jack, “together, Sussex Wire and Marox will have increased manufacturing capabilities and more engineering horsepower to solve our customers’ most difficult challenges.”

A Strong Deal Team
Tim complimented the work of all deal partners. When asked about his biggest surprise from the deal, Tim responded, “the length of the journey” - which he quickly pointed out was absolutely necessary for everyone to “learn values and understand how the other operates.”

NewSpring Capital also became involved in the transaction in early 2017 when its dedicated mezzanine fund, NewSpring Mezzanine Capital, made a $12 million commitment to Sussex Wire to support the acquisition of Marox. The NewSpring investment was led by Steve Hobman, General Partner.

Several ACG Philadelphia members played key roles in the acquisition:

Argosy Private Equity: Jack Nugent, Partner; Casey O’Rourke, Senior Associate; Matthew Erbe, Associate

NewSpring Capital: Steve Hobman, General Partner

Stevens & Lee: Steve Tyminski, Partner

M&T: Bill Long, Vice President and Joe Madison, Relationship Manager

Baker Tilly: Joseph C. Pellerite, Senior Manager

About Sussex Wire, Inc.
Sussex Wire is one of a very few companies in the world that can manufacturer miniature, precision, geometrically complex, cold forming of parts in quantities ranging from 10 million to over 1 billion per year. Sussex Wire utilizes cold-forming and roll-forming technologies to shape metal wire and specialty alloys in diameters of 0.0035’’ to 0.250’’ at room temperatures into symmetrical and asymmetrical components faster and in a more cost-effective manner than traditional machining, stamping, metal injection molding and casting methods can. The Company serves global blue chip customers who operate in the medical, electronics, connectors, computer, automobile, transportation, appliance, semiconductors, and glass to metal seal industries. Examples of custom parts are illustrated on the Company's website, www.sussexwire.com. The Company is ISO 9001-2008 certified.

About Marox Corporation
MAROX (www.marox.com), an ISO13485:2003, ISO9001:2008, and AS9100C company located in Holyoke, MA, with continuing operations since 1951 has developed a reputation in the medical and aerospace industries as a reliable source for high-quality, precision-machined components utilizing CNC multi-axis machining and Additive Manufacturing technologies.

About Argosy Private Equity
Argosy Private Equity (www.argosyprivateequity.com), based in Wayne, PA, is a lower middle market private equity firm, which invests in manufacturing and business services companies through management and leveraged buy-outs, recapitalizations, corporate divestitures, growth financings and generational transitions of family owned businesses. Argosy Private Equity is part of the Argosy Capital investment advisory group, which manages over $1 billion in private capital.


Read the ACG article here

INFORMATION
 

Sign up for informative quarterly emails on cold forming.



First Name
Last Name
Email
Company
Comments

 




Thank You!


Thank you for signing up for our newsletter.

Sussex Wire values your privacy. If you receive unwanted email, you may opt out to future alerts at any time.


Sussex Wire