Maine Machine is Sold to Equity Firm

by Matt Hongoltz-Hetling
     
     SOUTH PARIS – Maine Machine Products Company (MMPCO), a family-owned firm which employs approximately 140 area residents, was sold for an undisclosed amount on Tuesday to GenNx360 Capital partners, a large private equity firm based in New York City.
     Company officials say that the sale won't affect employment opportunities at the firm, nor will it change the company's tradition of investing in local educational organizations to encourage the development of local machinists.
     MMPCO has been in the Sutton family since its inception 54 years ago.
     “My family and I decided the time was right to look for a new owner,” said Roland L. Sutton, who is ending his term as board chairman.
     He said that they were looking for a new owner “who would not only respect our traditions, but assure the longevity of the company...We are delighted that GenNx360 is that exceptional owner.”
     MMCOP President David MacMahon, who has worked with the Suttons for 25 years, says that the sale will not cause a shakeup in the firm's workforce.
     The Sutton family leaves the board of directors, which will consist of four members, including MacMahon, GenNx360 Managing Partner Lloyd Trotter, and two other people, who have not yet been decided upon. The board meets on a quarterly basis.
     “The outstanding group of associates led by David MacMahon...and his management team will not change,” said Trotter.
     Sutton says that the community has been very supportive.
     “I founded Maine Machine with my former partner Bill Detert 54 years ago,” he said. “The community embraced us then, and has supported us over the years. The Sutton family is very grateful to the community for their support.”
     MMCOP has also been supportive of the community, and actively worked to develop opportunities for local machinists to learn their trade. The company has recently donated a $15,000 Robo-drill machine to Rumford's Region 9 School of Applied Technology, and provides scholarship opportunities through Central Maine Community College.
     MacMahon says that the company will “absolutely” remain committed to these causes.
     Over the years, 50 area students have enrolled in a program under which the company pays for tuition and other college-related expenses at CMCC. Program participants agree to work at Maine Machine for two years after they receive their degree. Half of the participants have continued working for the company, and are employed there today.
     According to the financial publication Bloomberg Businessweek, GenNx360 “seeks to invest in companies having revenues between $100 million and $1 billion.”
     MacMahon said that MMCOP's revenues are “in excess of $50 million.”
     Exactly how the new owners will impact the daily operation of the company remains unclear.
     Trotter said that he looks forward to “using our operational expertise, strategic insight and network to help them grow and expand the company.”
     GenNx360, which specializes in acquisitions of industrial business-to-business companies, was founded just four years ago, in 2006. Since that time, the company has acquired a variety of manufacturing companies, including Precision AeroPower, an airline component manufacturer, Clariant, a specialty silicone business, and GVI Security Solutions, an arm of Samsung electronics in the security industry.
     The company's five managing partners, which includes its founders, are known for being among the most successful black corporate executives in the world. Three of the partners have ties to General Electric, and their collective resumes include key positions at well-known corporate giants such as Monsanto, Citicorp, Merrill Lynch, and DuPont.
     Co-founder Arthur Harper has won the “Turn Around of the Year Award” from GE, and was honored as one of the “75 Most Powerful African Americans in Corporate America” by Black Enterprise Magazine in 2005.
     MMPCO manufactures custom precision components for targeted high-technology markets, including the medical, defense, telecommunication, oil, and gas industries.