Investment group focuses on smaller manufacturers

Accelity’s latest acquisition is Pewaukee firm

A Milwaukee-based investment group is quietly building a portfolio of small to medium-size manufacturing companies throughout southern Wisconsin.

The Accelity Group’s latest investment acquisition is United Tool, a Pewaukee-based company that employs 23.

Headquartered in Pewaukee, United Tool serves original equipment manufacturers with short-run and production-quantity precision-machined components, specialized tooling, stamping dies, fixtures and engineering services.

In addition to United Tool, Accelity also owns or has an investment stake in Super Steel in Milwaukee, Empire Coatings in Lomira, Tower Machining in Milwaukee, Jor-Mac in Lomira, Tower Power Solutions in Milwaukee and Mid Valley Industries in Kaukauna.

Accelity typically looks to invest in manufacturing, distribution and technical business services companies with annual revenue up to $25 million and operations in the Upper Midwest.

Its transactions include acquisitions, management buyouts, turnarounds or start-ups.

“We’re kind of a quiet little group,” said Roland Parker, one of the founding partners and a managing director of the Accelity Group. It’s getting louder. With the United Tool acquisition, “We’re well over $100 million in revenue with the group,” Parker said.

The other founding partners are Paul Luber and Bruce Keyes.

The companies under the group’s umbrella work together where it makes sense, but otherwise are left to stand on their own, retaining their own management and allowing owners to maintain an ownership stake.

“Accelity Group focuses on investment in entrepreneurial, financially challenged and established smaller middle market companies located in the Upper Midwest. We seek opportunities which will collaborate, partner with and/or enhance our existing platform companies,” according to the group’s website.

“We feed off the synergies of each other,” Parker said.

Much of the strategy involves giving smaller companies access to management expertise they might not otherwise be able to find or afford, without altering the smaller company’s identity.

“We still want to maintain that great close family-held business feel,” Parker said.

“Each one of these businesses is part of something bigger but they stand on their own and realize their futures lie in taking care of their customers and giving them what they need in a timely, quality manner.”

Accelity is always on the lookout for new opportunities, Parker said.

“We’re perfect for the owner who doesn’t have the perfect transition plan,” Parker said.

“It’s a good deal for some of the smaller business owners who want to be part of something bigger than themselves. We’ll step in and take an equity stake, help them grow the business.

“We usually can leverage each others’ capabilities and resources,” Parker added.