Milwaukee-based private equity firm Generation Growth Capital Inc. has acquired Indianapolis-based 3rd Dimension Industrial 3D Printing Co. from founder Bob Markley.
GGC acquired 3rd Dimension as a portfolio company of its $75 million third fund, Generation Growth Capital Fund III LP. The financial terms of the transaction, which closed July 27 and was announced today, were not disclosed. Markley retained some ownership of the company, said John Reinke, managing director of GGC.
3rd Dimension offers industrial precision manufacturing for metal-additive processes. Its customers are mainly in the aerospace, consumer branded goods, automotive and industrial sectors. Markley will continue to manage 3rd Dimension, and all eight of its employees will remain at the company.
Metal additive manufacturing is a newer field that several industries are exploring for applications such as engine and rocket development. 3rd Dimension is currently in production on a high-end faucet for Kohler Co.
“We’re seeing adoption into other markets, as well. It really applies in areas where complex design is at a premium. Typically lower volumes for production,” Reinke said.
Reinke said the additional capital provided by the GGC ownership has allowed 3rd Dimension to move its operations from a 4,500-square-foot facility to a 26,000-square-foot plant, also in Indianapolis. The manufacturer is seeing increasing interest in its technology, and is in the process of bringing in new equipment and hiring three to four additional employees to keep up with demand.
“Based on a trajectory of growth within this industry and some of our customers’ needs, now is the time to move,” Reinke said. “That’s actually why Bob sought to partner with us. He just reached the point where he was at full capacity at his current facility and was really looking for a partner that understood his technology and strategy and could help him grow the business to the next level.”
“During my search for the right partner, it became apparent that GGC was well-aligned with my goals and could offer more than just access to capital after the transaction,” Markley said. “Their team’s background in manufacturing provides significant strategic advantages. They speak the same language and understand the business model.”
Reinke said GGC plans to continue adding complementary portfolio companies.
“We’re actively looking for other acquisitions, particularly in the aerospace and defense machining side of the business, that we can continue to leverage the capabilities of 3rd Dimension into their customer bases,” he said. “This is just the start of a new platform that we hope to accelerate quickly.”
