Avure Technologies Acquired by Milestone Partners from The Gores Group
May 5, 2009
Sale Positions Company to Accelerate Execution of Its Successful Growth Strategy
Kent, Wash., May 5, 2009--Avure Technologies, Inc. (“Avure” or the “Company”), the global leader in contained high pressure processing systems, announced today that it has closed a sale transaction with Milestone Partners (“Milestone”), a new investment partner, effective on April 27, 2009. The terms of the transaction were not disclosed. Since being acquired by The Gores Group (“Gores”) in October 2005, Avure experienced substantial growth and identified Milestone as an ideal new investor to support Avure during the next phase of its expansion plan. Avure is managed by a world-class executive team and is supported by the industry’s most talented and experienced employees. Over the past few years, the Company bought out JV partners in an Ohio business, implemented a uniform operating infrastructure, created a new product development program, and became a customer-focused business. These initiatives have resulted in more than a 2.5x increase in revenue, and an even greater increase in profitability. In the next phase of its growth plan, Avure will focus on launching several new products, opening new and adjacent markets, and investing heavily in development projects designed to yield engineering breakthroughs that should dramatically expand the viability and applicability of its product offerings.
Pat Adams, President and Chief Executive Officer of Avure, commented, “Our experience with Gores exceeded our expectations.” Adams added, “With a staff of talented and passionate associates, a half century of global performance, a large backlog and a growing sales funnel, we are well prepared to leverage the expertise and capital base of another great investment partner. Milestone has demonstrated its ability to support its portfolio companies’ growth strategies, and is as passionate about Avure and its technology as we are.”
John Shoemaker, a Partner at Milestone, shared, “We are excited to have the opportunity to invest in Avure. In these challenging economic times, it is rare to find a company with such strong technology, solid financial performance, plentiful growth prospects and excellent leadership. We are equally pleased that a number of Avure managers have elected to co-invest with us.”
Scott Honour, Senior Managing Director of The Gores Group, added, “Gores is proud of the success that Avure achieved during our ownership period, and we are pleased to have contributed to the development of this outstanding company. This has been a good investment for Gores, our investors and Avure.”
Lazard Middle Market served as financial advisor to the Company in this transaction.
About Avure Technologies, Inc.
Headquartered in the Seattle area, with principle design and build operations in Västerås, Sweden; Avure Technologies, Inc. provides isostatic pressing processing equipment to created high quality specialty materials for both conventional and alternative energy markets, aerospace, military and advanced medical applications. The company’s metal forming equipment is utilized extensively in aerospace and is rapidly growing in other specialty markets which require complex, high strength, low volume metal components. Avure is also the largest provider of ultra high pressure systems utilized to pasteurize foods without the need for chemicals or additional heat. This technology has emerged as the industry’s most utilized non-thermal process and is a key element of many leading processors food safety program and an enabling technology to service the fast growing All Natural market. For more information, please visitwww.avure.com.
About Milestone Partners
Milestone Partners is a private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of lower middle market businesses. Milestone pursues successful niche market leaders that provide high-margin products or services. Milestone’s transactions typically provide liquidity to shareholders of privately-owned businesses, facilitate the transition of ownership to key managers, and allow management to capitalize on growth opportunities, while maintaining the legacy of the founders. Milestone is currently investments through Milestone Partners III, L.P., a $240 million fund. For more information, please visit www.milestonepartners.com.
About The Gores Group, LLC
Founded in 1987, The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm's current private equity fund has committed equity capital of $1.3 billion. Headquartered in Los Angeles, California, The Gores Group, LLC maintains offices in Boulder, Colorado and London. For more information, please visit www.gores.com
About Lazard Middle Market LLC
Lazard Middle Market LLC (www.lazardmm.com.
), a subsidiary of Lazard Ltd (NYSE:LAZ), provides strategic advice on M&A, restructuring, and public and private capital raising to the middle market. Our senior professionals focus exclusively on mid-cap companies, bringing to bear all the industry expertise, senior board-level relationships and local perspectives of Lazard’s bankers in 39 cities across 24 countries in North America, Europe, Asia, Australia, Central and South America.
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President & CEO
Avure Technologies, Inc.