L Squared Capital Partners Leads Investment in GWS Tool Group

L SquaredNew PlatformL Squared Capital Partners Leads Investment in GWS Tool Group




September 18 , 2019 | Posted by Adam Kimura |

L Squared Capital Partners Leads Investment in GWS Tool Group

Newport Beach, CA, September 18, 2019 – L Squared Capital Partners (“L Squared”) and GWS Tool Group (“GWS” or the “Company”) today announced that L Squared has partnered with GWS management to recapitalize the Company.  Financial terms of the transaction were not disclosed.

GWS represents L Squared’s tenth platform investment over the last five years.  GWS is a leading provider of high performance consumable cutting tools.  L Squared’s investment provides a long-term capital base to support the Company’s ongoing and rapid evolution.

“We are thrilled to partner with the L Squared team to support the continued development of GWS as a powerful player within the cutting tool universe,” said Rick McIntyre, CEO of GWS.  “L Squared’s long-term investment horizon will give us the freedom to keep our heads down and focus on our team’s primary objective of being one of the premier metalworking companies in the world.”

The continued expansion of GWS by way of acquisitions and constant investment in world class technology, people and equipment has created an unmatched value proposition for customers operating in advanced machining environments, especially in the area of custom tooling.  GWS remains committed to the expansion of this value proposition.

“We have been extremely impressed by the Company’s track record of growth and commitment to operational excellence – GWS has proven to be a strategic partner with its customers, developing custom solutions for some of the most complex manufacturing environments,” said Randall Hunt, Partner of L Squared. “Our family office capital base and long-term investment horizon is well suited to support the Company’s investment in its capabilities and pursuit of accretive acquisitions.”

This transaction provides capital to further the GWS acquisition strategy, helping to accelerate the expansion of the Company’s geographic footprint to support even more localized customer need, and positions GWS as the partner of choice for other cutting tool companies when it is time for them to pursue a sale. Moreover, GWS plans to accelerate investment in its people as well as its state-of-the art facilities.  These investments will further reinforce the Company’s industry leading product quality, delivery times, and overall customer satisfaction.

L Squared Capital Partners lead the equity investment with participation from the GWS management team as well as the Company’s incumbent financial sponsor, Addison Capital Partners.  Varagon Capital Partners led the debt financing to support the recapitalization.  Vedder Price served as legal counsel to L Squared.  Piper Jaffray served as an advisor and Akerman LLP served as legal counsel to GWS.  The L Squared deal team was composed of Randall Hunt, Jeff Farrero, and Tyler Huez.

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.

For additional information, please visit www.gwstoolgroup.com

About L Squared Capital Partners

L Squared Capital Partners is an investment firm with offices in Newport Beach, CA, and Chicago, IL, that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Tech-Enabled Services & Software, Industrial Technology & Services, and Education Technology.  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 60 years of combined experience investing in growing private companies.

For additional information, please visit www.lsquaredcap.com

For Additional Information Please Contact:

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

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

Tyler Huez
Vice President
Office: (949) 398-0182
[email protected]

This press release is 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. Investments with L Squared Capital Partners are only offered in accordance with applicable securities laws.