(Wall Street Journal) Incodema Holdings LLC, a sheet-metal and precision-manufacturing company backed by private-equity firm CORE Industrial Partners, has purchased peer Mark Two Engineering LLC, scoring its third acquisition in the past month.

Founded in 1996, Miami Lakes, Fla.-based Mark Two provides precision- machining services for suppliers of medical devices. The deal will enable Incodema to expand in the medical-equipment market while broadening its service offerings, which also include computer-controlled machining and photochemical etching, said TJ Chung, a senior partner at CORE.

Ithaca, N.Y.-based Incodema began its string of acquisitions less than six months after CORE bought the company last year alongside photochemical-etching specialist Newchem Inc., which was combined with Incodema. During December, Incodema acquired computer-controlled machining company Dahlquist Machine Inc. in Ham Lake, Minn., and precision sheet-metal fabricator Majestic Metals LLC in Denver.

The deals are part of CORE’s plan to expand Incodema as a provider of low- volume, customized manufacturing services catering to various sectors, including medical devices, electronics, aerospace and defense, Mr. Chung said. Customized services is one of the three areas where the Chicago manufacturing- focused firm concentrates its investments—in addition to rapid prototyping and three-dimensional printing—as manufacturers increasingly seek to create products tailored to specific user needs, according to Mr. Chung.

“As companies think of new product development, they are thinking about not just a new product specifically, but multiple variants of that new product,” Mr. Chung said. They’re looking to serve different segments and to “meet the exact requirements of their customers,” he added.

CORE had been for some time considering the three companies Incodema has acquired, but it was largely a coincidence that the transactions happened in such a rapid sequence, Mr. Chung said, adding that the coronavirus pandemic had little influence on the deals’ timing.

“We believe it’s the right time to put all these companies together to address this customization trend,” he said. “We’re pretty convicted at CORE that this trend will continue.”

Incodema is led by Chief Executive Carey Chen, who joined the company shortly after its acquisition by CORE. Mr. Chen previously served as executive chairman and president of machine-tool manufacturer Cincinnati Inc. and is also an operating adviser at CORE.

CORE is investing from its debut fund, CORE Industrial Partners Fund I, which closed in 2019 with $230 million in capital commitments.

Luis Garcia

CORE Industrial-Backed Incodema Makes Three Rapid-Fire Acquisitions – WSJ

Original Press Article