Mercury Manufacturing

Situation

Mercury Manufacturing Company (“Mercury” or the “Company”), located in Wyandotte, Michigan, is a quality driven manufacturer of pressure relief valves, check valves, precision machined components and assemblies serving the automotive, heavy duty truck, air conditioning and refrigeration markets.

The Company, founded in 1964 as a screw machine operation, continuously added capabilities and processes to position itself as a value-added manufacturer of precision components and assemblies with strong expertise in valves.

The Company’s sole shareholder desired to pursue a sale transaction for retirement purposes.

Solution

The Company engaged Amherst Partners (“Amherst”) to lead a process focused on maximizing shareholder value and identifying a buyer with the capital and resources to apply Mercury’s manufacturing capabilities to new markets and product applications.

Results

Amherst approached a select group of strategic and financial buyers and received multiple indications of interest at very competitive valuations.

Ultimately, Mercury was sold for a highly desirable price to O2 Investment Partners, LLC (“O2”).

O2, a private equity firm specializing in middle-market manufacturing companies, plans to leverage the automotive and industrial manufacturing experience of its principals through its investment in Mercury.

The acquisition broadens O2’s portfolio of niche manufacturing companies, while providing a new platform investment in the valve product segment.

The transaction, which exceeded pre-project expectations for value, provided the shareholder with liquidity while Mercury’s executives will continue to grow the Company as integral members of the new management team.