Merit Capital Partners has sold Monarch Industries to TriWest Capital Partners

Monarch Industries

Monarch Industries is a leading vertically integrated manufacturer of hydraulic cylinders and custom iron castings. The Monarch name is synonymous with premium quality, highly engineered products, top-notch delivery performance, technical support and cost competitiveness. Founded in 1935 and headquartered in Winnipeg, Canada, Monarch has established itself as a “one-stop-shop” for industry-leading original equipment manufacturers in agriculture, construction and industrial end markets.

The Deal

During Merit Capital Partners’ ownership period, Monarch grew its market-leadership position and rapidly built scale by diversifying its end market mix, strengthening existing customer relationships and enhancing the leadership team. TriWest Capital Partners has acquired a majority stake in Monarch and will support the organic and inorganic growth of the company. The terms of the transaction were not disclosed.

Dan Pansing, Managing Director at Merit, commented, “The Lincoln team worked tirelessly in executing a highly successful transaction for not only our shareholders, but the management team as well. We were honored to have partnered with Monarch over the last several years and look forward to the team’s future success alongside their new partner.”

Our Perspective

Bobby Reifman, Managing Director in Lincoln’s Industrials Group, commented, “Monarch is another example of continued interest and investment in the motion control space, specifically around hydraulics. Our team has had tremendous success in finding ideal outcomes for world-class players in the space, and Monarch is no exception. Appetite for investment in companies like Monarch will continue to remain high as investors and strategics alike seek opportunities for critical suppliers in complex, global supply chains.”

Merit

Since 1993, Merit has raised and managed $2.8 billion across seven institutionally sponsored limited partnerships, deploying capital in 97 platform investments. Merit invests in minority and majority recapitalizations, management buyouts, acquisition financings and other shareholder liquidity events. The firm seeks to partner with founders, business owners, management teams and independent sponsors. Merit continues to pursue investments in high-quality, established businesses with carefully conceived operating strategies across the manufacturing, distribution and services industries. Focusing on companies with EBITDA of more than $4 million (all sizes considered for portfolio add-on investments), Merit targets new platform investments between $15 million and $60 million. For more information, please visit www.meritcapital.com.

TriWest

Founded in 1998 and based in Calgary, Canada, TriWest is one of Canada’s leading private equity firms, having raised more than approximately $1.4 billion in committed capital through six funds. TriWest has successfully invested in 47 companies across a broad cross-section of the economy in partnership with their management teams. TriWest works closely with management partners together proactively putting in place a strategy that maximizes growth potential and value creation by emphasizing operational excellence, prudent governance and an efficient capital structure. The principals of TriWest have significant operational and financial expertise, making the firm an effective partner in creating shareholder value. For more information, please visit www.triwest.ca.

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