Femco Machine Company Acquires Spencer-Harris Machine & Tool Company

Stamford, CT – Saugatuck Capital Company is pleased to announce the acquisition of Spencer-Harris Machine & Tool Company (“Spencer-Harris”) through its portfolio company, Femco Machine Company (“Femco”). Saugatuck advised Femco on the transaction and provided equity capital through its investment vehicle Saugatuck Capital Company V LLC alongside management and employees of Femco to acquire the assets of Spencer-Harris, which will operate as a wholly-owned subsidiary of Femco. The Middle Market Finance Group of Merrill Lynch, Femco’s current lender, provided additional senior debt financing for the transaction.

Founded in 1982, Saugatuck Capital Company is a long-established private investment firm committed to growth equity investments in the lower, middle market. Sourcing investment opportunities through an unparalleled set of contacts, Saugatuck has invested in profitable, well-established, service-intensive businesses where it has the requisite experience to drive portfolio company performance improvements. The Firm has been dedicated to a philosophy of hands-on value creation in which exceptional management teams, in partnership with Saugatuck’s capital and expertise, build companies of outstanding value.

Established in 1965, Femco is a leading provider of repair services and producer of aftermarket and OEM replacement parts for customers that operate heavy equipment and vehicles. The Company’s specialized capabilities allow it to manufacture and repair extraordinarily large components and machines used primarily in the crane and dragline industry, recycling facilities, aggregate and concrete companies, metal stamping shops, sugar cane harvesters, the mining industry and other heavy industrial markets. It also operates a fleet of 19 mobile machine shops, which are staffed by technicians and contain specialized cranes and machining equipment. The mobile fleet is available 24 hours per day, seven days per week to meet customer needs.

Spencer-Harris, located in Gladewater, Texas, provides specialized manufacturing, fabrication, refurbishment, and repair & maintenance services to the oil & gas industry. With its machining and metal fabrication capabilities, Spencer-Harris is able to manufacture, rebuild and refurbish equipment utilized in mobile drilling and well service rigs, including mud pumps, drawworks, rotary tables, swivels and other key components. In addition, Spencer-Harris manufactures its own private label line of skid version and trailer mounted drawworks.