Tecum Capital has made an investment in CM Industries, a manufacturer of branded welding equipment and consumable welding supplies. Co-investing in this transaction alongside Tecum are members of the CM’s senior management team, Stacker Holdings, and Salem Investment Partners.
CM Industries sells a full range of branded products including robotic, MIG (metal inert gas welding) and TIG (tungsten inert gas welding) equipment and associated peripherals and consumables.
MIG welding uses a continuously fed wire electrode and a shielding gas to create a weld, while TIG welding uses a tungsten electrode and a separate filler material if needed, with shielding gas, to form the weld. MIG is typically faster and easier for beginners, while TIG offers more precise control and is preferred for thinner materials and higher-quality welds.
CM’s distributor customers serve a range of customers in the United States, Mexico, Canada, and Germany that are active in agriculture, construction, automotive, oil and gas, and general fabrication sectors. CM is headquartered 40 miles northwest of Chicago in Lake Zurich, Illinois.
“CM Industries offered a compelling opportunity to partner with a leading manufacturer of welding equipment with high reoccurring revenue and superior quality to leading OEMs,” said Stephen Gurgovits, Jr., a managing director at Tecum. “We are excited to partner with the CM Industries’ team in the next phase of growth.”
Tecum’s CM Industries transaction team was led by Matt Harnett, Jack Surma, and Carter Henderson.
Headquartered near Pittsburgh in Wexford, Pennsylvania, Tecum invests both junior capital and equity of $5 million to $20 million in companies that have EBITDA from $3 million to $10 million and are active in the high-value manufacturing, value-added distribution, and business service sectors. Tecum manages two SBIC funds and is currently investing out of Tecum Capital Partners III LP a $305 million fund launched in September 2021.
Salem Investment Partners invests from $2 million to $10 million of subordinated debt and equity in Southeast, Mid-Atlantic, and Midwest-based companies that have at least $10 million in revenue and $1 million of EBITDA. Sectors of interest include business and healthcare services, light manufacturing, consumer products, and wholesale distribution. The firm has offices in Charlotte and Greensboro, North Carolina.
Chicago-headquartered Stacker Holdings invests across the United States but has preference for Midwest-based companies that have at least $2 million of EBITDA. The firm was co-founded in 2020 by G.R. Kearney and Austin Reichardt.
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