Washington Equity Partners Acquires Accu-Tube and Announces Kevin McGrath as CEO
MCLEAN, VA / ENGLEWOOD, CO, August 21, 2018 – Washington Equity Partners (“Washington Equity,” a private equity firm based in the Washington DC metro area) today announced that it has acquired Accu-Tube Corporation (“Accu-Tube” or the “Company”), a leading manufacturer of highly engineered small-diameter stainless steel tubing. Washington Equity also announces the appointment of Kevin McGrath as Chief Executive Officer of Accu-Tube, effective immediately. In addition, Bill Ellerkamp and Diane Loudon will join the Company’s Board of Directors.
Founded in 1973, Accu-Tube manufactures top quality standard and custom size stainless steel tubing, ranging from.009" OD (.23mm) to .375"OD (9.35mm). The Company is headquartered in Englewood, Colorado and largely sells to the medical, aerospace and industrial end markets.
Prior to joining Accu-Tube, Kevin McGrath most recently served as Vice President, Advanced Surgical at Tecomet, Inc., a leading manufacturer of complex parts for the Medical Device and Aerospace/Defense markets. Prior to Tecomet, Mr. McGrath had executive management roles at Mountainside Medical (where he was one of three original co-founders), Accellent, MedSource Technologies, and National Wire and Stamping.
Jesse Liu, a Partner at Washington Equity, states that, “Accu-Tube is a clear market leader with unique engineering capabilities and differentiated products, and the customer demand for its tubing far exceeds the Company’s current revenue base. We plan to make significant investments to expand the Company’s manufacturing capacity, and are excited to be partnering with new CEO Kevin McGrath and the current Accu-Tube team to grow the business.”
Kevin McGrath, Chief Executive Officer of Accu-Tube, continues, “I am excited to join the Accu-Tube team as the Company begins its partnership with Washington Equity. I have been a longtime customer of Accu-Tube’s tubing and have a strong appreciation for the market-leading quality of its products, the strong capabilities of its talented management and employees, and the opportunity ahead. We look forward to enhancing our service levels to each of our current customers and building increased awareness of our capabilities across each of our market segments.”
Bob Knibb, a Partner at Washington Equity, added, “We are thrilled to add Accu-Tube to our portfolio and we will invest our capital, expertise and resources to significantly expand Accu-Tube’s operations, manufacturing footprint, and employee base. In addition, we are also eager to pursue potential acquisitions of companies that have complementary tubing capabilities.”
Plexus Capital and Private Advisors provided debt and equity financing in support of the transaction.
EdgePoint served as the exclusive financial advisor to Accu-Tube.
About Washington Equity Partners
Washington Equity Partners is a sector-focused private equity firm that makes control equity investments in established lower middle market businesses with strong prospects for rapid organic and acquisition-driven growth. The firm is headquartered in McLean, VA and is focused on investing in: (i)Aerospace, Defense, and Government Contracting, (ii) Industrial and Advanced Manufacturing, and (iii) Software and Technology. www.w-equity.com
Headquartered in Englewood, CO, Accu-Tube is a leading manufacturer of highly engineered small-diameter stainless steel tubing. The Company was founded in 1973 and is a long-time tubing supplier to OEMs and Tier I suppliers in the medical, aerospace and industrial markets. Accu-Tube’s standard and custom size stainless steel tubing ranges from .009" OD (.23mm) to .375"OD (9.35mm). www.accutube.com
Jesse Liu, Bob Knibb or Hagen Saville
Washington Equity Partners
1420 Spring Hill Road, Suite 600
McLean, VA 22101
Source: Washington Equity Partners