LFM Capital has sold Vektek to CNL Strategic Capital

Vektek

Founded in 1974 and headquartered in St. Joseph, Missouri, Vektek designs, engineers and manufactures automated workholding solutions for computer numerical control (CNC) machining. As a market leader in high-pressure hydraulic clamps, Vektek products are essential to machine automation, tight tolerance machining and user production throughput. Vektek serves domestic and international machining customers in end markets including general industrial, automotive, agriculture, medical devices, technology and aerospace.

The Deal

In partnership with LFM Capital, Vektek established a worldwide presence as a leading provider of automated workholding equipment through completion of key strategic initiatives. CNL Strategic Capital, which is externally managed by CNL Strategic Capital Management, LLC and Levine Leichtman Strategic Capital, LLC, has acquired a majority stake in Vektek and will support the organic and inorganic growth of the company. The terms of the transaction were not disclosed.

Our Perspective

Bobby Reifman, Managing Director in Lincoln’s Industrials Group, commented, “We have seen continued accelerating demand for leading tool-related assets that serve the industrial automation space. Vektek’s value proposition attracted global interest from both strategic and financial investors, resulting in a great outcome for the shareholders and management. We expect to see continued focused investment in the space going forward.”

LFM

LFM is a private equity (PE) firm based in Nashville, Tennessee. The LFM team is led by experienced and successful Fortune 50 global executive managers and PE professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks and a successful track record in lower mid-market investing. LFM targets lead or control investments in U.S.-based, lower mid-market manufacturing and industrial services companies with at least $3 million of EBITDA. The firm’s mission is to partner with portfolio company management to develop and build world-class operations through a combination of manufacturing and operations excellence, and targeted growth and expansion strategies.

CNL Strategic Capital

CNL Strategic Capital is a publicly registered, non-traded limited liability company that seeks to provide current income and long-term appreciation to individuals by acquiring controlling equity stakes in combination with loan positions in durable and growing mid-market businesses. The company is externally managed by CNL Strategic Capital Management, LLC and Levine Leichtman Strategic Capital, LLC.

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