The pending sale marks the seventh overall exit since L Squared’s formation in 2014

November 22, 2021 08:00 AM Eastern Standard Time

NEWPORT BEACH, Calif.–(BUSINESS WIRE)–L Squared Capital Partners announced today that Sandvik is acquiring GWS Tool Group, a leading provider of highly engineered consumable cutting tools. GWS will be reported in Walter, a division within the business area Sandvik Manufacturing and Machining Solutions. The acquisition of GWS will support Walter’s growth strategy in North America and strengthen its solid carbide tools offering. This acquisition represents a strategic opportunity to increase Walter’s and GWS’ respective positions in the manufacturing of advanced components and light-weight materials.

“We are grateful for our partnership with the executive leadership team at GWS, notably Rick McIntyre as CEO,” said Randall Hunt, Partner at L Squared. “Rick’s leadership and vision enabled GWS to expand rapidly while creating an unmatched value proposition for GWS customers.”

A cornerstone of the GWS investment thesis was the opportunity to consolidate the fragmented landscape of high-performance cutting tools providers. L Squared was steadfast in the execution of this thesis by supporting GWS’ rapid growth by way of acquisitions and constant investment in world class technology, people and equipment. In the past four years, GWS has consummated ten add-on acquisitions that resulted in the company growing revenue from less than $10 million to approximately $100 million.

“L Squared has been an excellent partner for our rapid growth trajectory,” said Rick McIntyre. “L Squared has provided the necessary resources to achieve our primary objective of becoming one of the premier metalworking companies in the world. I’d like to thank them for the great partnership that has culminated in this outstanding result for all stakeholders.”

L Squared and GWS were advised on the transaction by BlackArch Partners LLC and Vedder Price P.C.

About L Squared Capital Partners

L Squared Capital Partners is an investment firm headquartered in Newport Beach, CA that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. Our unique investor base of family offices enables us to focus on long-term value creation driven by revenue and earnings growth, not financial engineering or market timing. The principals of L Squared have worked together for over a decade and have over 100 years of combined experience investing in growing private companies. For additional information, please visit www.LSquaredCap.com.

About GWS Tool Group

GWS Tool Group is a US-based, vertically integrated manufacturer of highly engineered custom, standard, and modified standard cutting tools, primarily servicing the aerospace and defense, power generation, automotive and medical sectors. GWS Tool Group has acquired multiple businesses in the course of its growth which now serve as the respective manufacturing divisions for the Company.

About Walter

Walter was founded in 1919 and is now one of the world’s leading metalworking companies. As a provider of specialized machining solutions, Walter offers a wide range of precision tools for milling, turning, drilling and threading applications. Walter works together with its customers to develop customised machining component solutions for use in the aviation and aerospace industries, as well as automotive, energy, and general engineering. Demonstrating its Engineering Kompetenz at every stage of the machining process, Walter is an innovative partner capable of creating digital process solutions for optimal efficiency. With around 3,300 employees worldwide, together with its numerous subsidiaries and sales partners, Walter serves customers in over 80 different countries.

This press release is provided for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase of any investment. Investing with any investment firm is suitable only for qualified investors that fully understand the risks of such an investment. L Squared Capital Partners is an investment adviser registered with the United States Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investments with L Squared Capital Partners are only offered in accordance with applicable securities laws.

Contacts

Randall Hunt
Partner
Office: (949) 398-0172
[email protected]

Jeff Farrero
Managing Partner
Office: (949) 398-0175
[email protected]