News

March 3, 2003

Capital From Norwest Mezzanine Partners To Fund Growth For MPI International

Norwest Mezzanine Partners announced today its investment in MPI International, Inc. MPI is the leading provider of high-precision components using a precise, high-volume manufacturing process known as fineblanking. MPI products are used in a variety of industries, including defense and aerospace, medical devices, construction machinery, automotive and more. MPI customers include the world’s leading car manufacturers and tier-one automotive suppliers. The company had revenues of $135 million in 2002 and employs 950 people in the United States.

The transaction closed on February 28, 2003, and Norwest Mezzanine invested $18,000,000 of senior subordinated debt with warrants and $2,000,000 of preferred/common equity. The transaction was structured as an acquisition, and Cleveland-based Morgenthaler Partners is the equity sponsor. “MPI is a venerable operation, with a history of innovation dating back 34 years,” said John Lutsi, Morgenthaler’s general partner. “We look forward to working with the MPI management team to build on their lead and continue their enviable record of customer service.”

According to Lutsi, MPI is also an ideal platform for growth in the fineblanking sector. It is a highly fragmented industry, where the vast majority of the companies are small, private, family-owned and niche-focused. Only three such companies have annual revenues in excess of $40 million. “Morgenthaler has assembled an investment group, which includes Norwest Mezzanine, that has the ability to support a growth platform within the fineblanking industry. MPI will be well-resourced to pursue acquisition opportunities as they present themselves,” Lutsi said.

Michael Hall, partner with Norwest Mezzanine adds, “We’re elated to have the opportunity to partner with Morgenthaler in support of MPI. The depth of the management team, their experience and reputation within the fineblanking industry and the opportunities for add-on acquisitions give us further confidence in this well-established company and its abilities to grow.”

Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.