Stellex Capital Management Makes Additional Investment in Paragon to Support Growth
NEW YORK--(BUSINESS WIRE)--Sep 13, 2021--
Paragon Metals, LLC (“Paragon” or the “Company”) today announced the completion of a new investment by affiliates of Stellex Capital Management (“Stellex”), a middle market private equity firm. This additional investment by Stellex follows its purchase of Paragon in early 2019, at which time Stellex committed to provide capital to support additional growth. Following the investment, Paragon will have an underleveraged balance sheet and significant liquidity. The financial terms of the transaction were not disclosed.
With three manufacturing facilities in southern Michigan, Paragon is engaged in the business of manufacturing, distributing, sourcing, and importing complex, tight tolerance precision-machined components and assemblies serving a variety of industries, including automotive, heavy truck and general industrial markets. The timing of the added investment is driven by Stellex’s belief in Paragon and its strategic plan to continue to grow both organically and through its targeted acquisition strategy.
Steve Crain, a widely-respected manufacturing industry veteran, will continue to serve as Paragon’s Chief Executive Officer and lead efforts to leverage its current customer base and take advantage of multiple growth opportunities. Mike Stewart, Managing Partner of Stellex, said, “Paragon’s ability to deliver highly-complex products with exceptional customer service, quality and delivery have made it a clear leader in its space, and we believe the Company is well-positioned to capitalize on new opportunities in electric vehicle (“EV”) applications and in other markets. We expect that Paragon will have runway for future growth, and we are excited to continue to support the management team and further accelerate the Company’s growth.”
“We are thrilled with Stellex’s continued support as we pursue the next stage of growth for Paragon,” said Mr. Crain. “We believe Stellex’s depth of capabilities and expertise in the automotive industry are a great complement to those of Paragon, and the additional investment further confirms the fantastic work done by our team members.”
“Since our initial acquisition of Paragon, the Company has continued its progress with several new large-scale product launches and maintained its operational excellence while navigating through COVID and other industry headwinds,” added David Waxman, Managing Director of Stellex. “Its industry-leading expertise in producing precision parts—with challenging engineering, development and build timelines—supports the incremental investment we are making in Paragon to expand its reach into new products, technologies and markets. Additionally, we see Paragon as a platform investment and intend to continue building the business organically and through acquisitions.”
About Paragon Metals
Paragon Metals, LLC is a leading manufacturer of complex, tight tolerance precision machined components and assemblies. Paragon’s broad process expertise is complemented by a growing reputation as a product expert across various applications and mediums. The Company’s products are found on many critical applications in the automotive and heavy truck markets supporting ICE, hybrid, and EV platforms such as powertrain, driveline, and chassis among other industrial applications. Paragon is adept with multiple materials, including iron, aluminum, steel, and other light metals. For more information please visit: www.paragonmetals.com.
About Stellex Capital Management
With offices in New York, Detroit, and London, Stellex Capital is a private equity firm with over $2.6 billion in AUM. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement, and growth. Portfolio companies benefit from Stellex’s industry knowledge, operating capabilities, network of senior executives, strategic insight, and access to capital. Sectors of particular focus include specialty manufacturing, industrial and business services, aerospace and defense, automotive, and government services. Additional information may be found at www.stellexcapital.com.
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Chief Executive Officer
KEYWORD: UNITED STATES NORTH AMERICA MICHIGAN NEW YORK
INDUSTRY KEYWORD: FINANCE STEEL ALTERNATIVE VEHICLES/FUELS AUTOMOTIVE ENGINEERING PROFESSIONAL SERVICES AUTOMOTIVE MANUFACTURING MANUFACTURING
SOURCE: Stellex Capital Management
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PUB: 09/13/2021 08:01 AM/DISC: 09/13/2021 08:06 AM