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Arc Machines, Inc. Announces Acquisition of Exel Orbital Systems Assets
Pacoima, CA – August 13, 2008 – Arc Machines, Inc. (“AMI” or the “Company”) today announced that it acquired certain assets of Exel Orbital Systems (“Exel”) of Santa Monica, California as well as certain intellectual property related to Exel’s automated orbital welding products.
Founded in 1989, Exel designs, produces and markets specialty orbital welding equipment for use in high purity and other Tube welding applications and holds several patents and patent applications related to its products. Kevin McGushion, founder and sole shareholder of Exel Orbital Systems said, “Exel products coupled with the market leadership and customer support of AMI will provide a valuable new offering for orbital welding customers.”
Following a period of technology transfer, Exel’s welding products will be marketed through Exel Orbital Products, a newly formed subsidiary of AMI. By combining Exel’s products and technology with that of AMI, a new, easier to use and lower cost orbital welding system will be created. This new product line will bolster the Company’s efforts in emerging markets as well as in several industries where use of automated orbital welding is growing.
Mindy Gedgaudas, President of AMI said, “The addition of Exel to our business supports our long-term strategic plan to extend our reach into new application areas and markets. We believe Exel’s product range and customer base will benefit from the support of AMI’s strong domestic and international organization.”
This acquisition marks the Company’s first major investment since being recapitalized by Marwit Capital Partners II, L.P in January 2008. “We are committed to supporting AMI in its plans for dynamic growth – both in the USA and overseas – through a combination of acquisitions and organic growth,” said Matt Witte, Managing Partner of Marwit. He continued, “AMI is a strong, well-managed company that is well-positioned to take advantage of the growing demand for high-quality, high-specification automated orbital welding in a number of rapidly expanding industries.”
About Arc Machines, Inc.
Arc Machines, Inc. (“AMI”) (www.arcmachines.com), founded in 1976 by M.E. Gedgaudas, L.V. Reivydas and K. Fukumoto, is the leading worldwide developer and manufacturer of automated orbital welding systems, including power sources, weld heads, arc zone vision systems and related accessories. AMI’s equipment is used by a blue chip list of customers around the world in a number of high growth industries including nuclear and fossil-fired power generation, petrochemical, biopharmaceutical, aerospace and semiconductor. The Company currently maintains four offices and distribution centers worldwide: Pacoima, CA (headquarters), Switzerland, Germany and the UK as well as regional sales offices in Atlanta GA, Washington State, York, PA and Columbus, OH.
About Marwit Capital
Marwit Capital (www.marwit.com) is one of the oldest and most experienced private equity firms in the Western U.S. Founded in 1962, Marwit’s investment focus is on lower middle market companies based in the Western U.S., with revenues of $20 to $200 million and enterprise values up to $100 million. Marwit specializes in management buyouts, platform LBO acquisitions in partnership with experienced industry executives, recapitalizations, and later stage growth investments. Marwit seeks to invest $10 to $30 million of equity capital per portfolio company, in one or a series of investments. Marwit is currently investing out of Marwit Capital Partners II, a $183.7 million fund.
Media Contact:
Linda Chaffin
Marwit Capital
949-861-3636
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