10 Sep Gardner Standard Announces Sale of McNally Industries
NEW YORK, September 9, 2019 – Gardner Standard LLC today announced the sale of McNally Industries, LLC (“McNally”) to Susquehanna Private Capital, LLC (“SPC”).
Based in Grantsburg, Wisconsin, McNally manufactures precision systems for the defense and industrial markets. McNally has an established history supporting various U.S. Department of Defense customers with missions across land, air, and sea. Supported programs include Ground Combat Vehicles, including Bradley, Paladin and the Army’s new Armored Multi-Purpose Vehicle, Army Rotary Wing Aircraft, including Blackhawk, Apache and Chinook, the Navy’s fleet of DDG-51 destroyers as well as the Army’s 120mm, 81mm and 60mm Mortar Weapons Systems.
Led by President Jim Segelstrom, McNally has grown rapidly, introducing new manufacturing equipment and broadening its design and reverse engineering capabilities. Under Gardner Standard’s ownership McNally has nearly doubled in size, invested in the latest automated manufacturing technology and expanded its sales and engineering teams. “McNally provides a compelling value proposition to its customers and is well positioned for future success,” said Michael Healy, Managing Member of Gardner Standard. “During our ownership period Gardner Standard and McNally’s management team made significant capital investments in manufacturing equipment and a new 17,500 square foot assembly and test facility, which have enabled McNally to win new programs and deepen customer relationships. Going forward, we are excited to continue our involvement and work with SPC as a minority equity investor.”
“Gardner Standard has been a terrific partner for McNally by supporting our growth plans with capital for new equipment purchases and providing strategic guidance,” said Jim Segelstrom. “This support has allowed me, together with the rest of the McNally management team, to focus on growing the business and delivering significant value to our customers.”
Terms of the transaction were not disclosed.
About McNally Industries
Founded in 1942 and headquartered in Grantsburg, Wisconsin, McNally provides advanced design engineering, complex test and assembly, and precision machining and manufacturing for mission-critical applications, primarily supporting new and legacy platforms for the aerospace & defense and midstream oil & gas markets. McNally’s full-service offerings range from initial product design and manufacturing to final testing and after-market support, including reverse engineering and technical data package development. McNally works with leading blue-chip clients that serve the U.S. Department of Defense and midstream oil & gas end markets.
About Gardner Standard
Gardner Standard is a private investment firm that invests in small middle-market companies and traces its origin to a Minnesota-based, family-run business founded in 1884. Gardner Standard considers investments in a wide variety of market segments, including manufacturing, aerospace & defense, industrial services and engineered industrial products. The fundamentals of a business, particularly its growth prospects and competitive position, are Gardner Standard’s focus rather than a specific market segment. In addition to traditional private equity investments, Gardner Standard targets opportunistic investments in high-quality operating businesses with low-quality balance sheets.
For more information, please visit www.gardnerstandard.com.