McNally Capital Completes Sale of Advanced Micro Instruments, Inc. to Enpro Inc.

Rhea-AI Summary

McNally Capital announces the completion of the sale of Advanced Micro Instruments, Inc. to Enpro Inc. The sale marks the fifth realized portfolio company for McNally Capital, showcasing their focus on industrial technology investments.

Insights

Financial Analyst

The completion of the sale of Advanced Micro Instruments, Inc. (AMI) to Enpro Inc. is a transaction that can have a significant effect on the financial dynamics of both companies involved. From a financial perspective, the acquisition of AMI by Enpro, a company listed on the NYSE, could lead to a diversification of Enpro's product offerings and potential synergies. The deal may also impact Enpro's revenue streams and EBITDA margins, especially considering AMI's focus on highly engineered, application-specific analyzers and sensing technologies. It is crucial to analyze the acquisition price, the funding method and how this transaction aligns with Enpro's long-term financial strategy, including any guidance on expected accretion to earnings or cost savings.

Furthermore, the announcement mentions McNally Capital's investment strategy, which targets lower middle-market businesses with specific EBITDA ranges. The successful exit from AMI might influence McNally's reputation and could impact its ability to raise future funds or make similar successful exits. It is also indicative of the private equity firm's ability to execute its investment thesis, potentially affecting the firm's portfolio strategy going forward.

Market Research Analyst

The sale of AMI to Enpro Inc. is likely to have ramifications within the industrial technology sector, particularly in the niche of application-specific analyzers and sensing technologies. These technologies are critical for maintaining infrastructure integrity and facilitating the clean energy transition, which are key areas of growth in today's economy. The acquisition could position Enpro as a more competitive player in this space, potentially affecting market share dynamics among competitors.

It's essential to consider the strategic fit of AMI within Enpro's existing product lines and how this acquisition might enhance Enpro's market positioning. The ability of Enpro to integrate AMI's technologies and maintain the innovation momentum will be a critical factor in realizing the full value of the acquisition. Additionally, the deal could signal broader industry trends, such as consolidation in the sector or an increased focus on sustainable and efficient technologies.

CHICAGO--(BUSINESS WIRE)-- McNally Capital (“McNally”), a private equity firm, is pleased to announce it has completed the previously announced sale of Advanced Micro Instruments, Inc. (“AMI”) to Enpro Inc. (NYSE: NPO). AMI is a leading provider of highly engineered, application-specific analyzers and sensing technologies that monitor critical parameters to maintain infrastructure integrity, enable process efficiency, enhance safety, and facilitate the clean energy transition. The sale, completed on January 29, 2024, marks the fifth realized portfolio company for McNally Capital.

McNally originally invested in AMI in 2014, and the acquisition stemmed from the firm’s focus on the industrial technology, products, and services industry. It was consistent with the firm’s strategy of partnering with founders and management owners to promote the continued success and expansion of privately-held businesses.

McNally Capital makes thesis-driven investments in the U.S. and targets founder- and management-led companies. The firm is focused on acquiring lower middle-market businesses with $5 million to $20 million in EBITDA in the Aerospace & Defense/National Security, Industrials, and Business Services industries.

About McNally Capital

McNally Capital is a private equity firm based in Chicago, Illinois. The firm is currently investing out of its committed buyout fund, McNally Capital Fund II, LP.

McNally Capital seeks to apply its hands-on experience, institutional capabilities, and proprietary value creation framework to its portfolio companies to benefit management teams in their next phase of growth and build value for McNally Capital’s investors. The firm also leverages a deep bench of industry partners who provide incremental industry and operating knowledge.

Ward McNally founded the firm in 2008. He is a sixth-generation member of the McNally family, which proudly owned and operated Rand McNally & Company for over 100 years until its sale in 1997. These roots provide a deep appreciation of building and scaling companies that shape industries and endure for generations.

For more information, please visit www.mcnallycapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240221926342/en/

Nicole M. Henderson, Head of Fundraising & Investor Relations

(312) 757-5158

nhenderson@mcnallycapital.com

Tyler Ashley, Head of Business Development

(312) 767-2511

tashley@mcnallycapital.com

Source: McNally Capital

FAQ

What is the ticker symbol for Enpro Inc.?

The ticker symbol for Enpro Inc. is NPO.

When was the sale of Advanced Micro Instruments, Inc. to Enpro Inc. completed?

The sale was completed on January 29, 2024.

How many portfolio companies has McNally Capital realized with the sale of Advanced Micro Instruments, Inc.?

The sale marks the fifth realized portfolio company for McNally Capital.

What type of companies does McNally Capital focus on acquiring?

McNally Capital focuses on acquiring lower middle-market businesses with $5 million to $20 million in EBITDA in the Aerospace & Defense/National Security, Industrials, and Business Services industries.