SOURCE: Katahdin Industries, Inc.

Katahdin Industries, Inc.

January 30, 2012 09:58 ET

Katahdin Industries, Inc. Adds Capital Partner

Minority-Interest Investment Will Support New Opportunities for Growth

DEDHAM, MA--(Marketwire - Jan 30, 2012) - Katahdin Industries, Inc., a provider of high-tolerance coating applications and specialized metal finishing technology and services to the medical device and industrial markets, today announced the successful closing of a financing transaction. Katahdin has partnered with Ironwood Capital to gain access to growth capital and to support Katahdin's re-purchase of an equity stake previously held by Seacoast Capital.

In 2006, Seacoast Capital provided financing to support the acquisition of Katahdin by Tim Cabot and Bob DeAngelis. Since the initial investment, Katahdin has increased revenue by 50 percent, commissioned a dedicated medical coating facility in Boston, and completed a successful merger of its metal finishing business to form and grow DCHN, which provides state-of-the-art anodizing and metal-finishing services. The new subordinated debt and minority-interest equity investment from Ironwood Capital helped to support the re-purchase of Seacoast's profitable investment in the company.

"With the first phase of investment in the business completed, this was an ideal time to bring in fresh capital to prepare us for our next, growth-oriented phase about which we are tremendously excited," said Tim Cabot, CEO & President of Katahdin. "We see a clear path to scale our businesses through direct investment in new regional facilities and through an active licensing program to support the business objectives of our strategic customers. By doing so, we believe we can improve our earnings while building a broadly recognized and respected business with increasingly attractive opportunities."

CFO Steve Schaepe added, "We undertook a strategic review of a targeted group of potential capital partners to identify the best fit for Katahdin -- both to complete the growth financing and to support future objectives. Ironwood is a tremendously successful provider of growth capital, with relevant prior investment experience, that recognized the strength of Katahdin's business opportunities and the growing depth of its management team. We continue to evaluate opportunities to add coating application platforms to Katahdin through acquisition, and to further invest in the scale, capability and reach of our existing PTFE coating and metal finishing platforms."

About Katahdin
Katahdin Industries, Inc. ( provides high tolerance coating applications and specialized metal finishing technology and services to the medical device and industrial markets through platform-focused subsidiaries. Katahdin's coating operations are conducted through Precision Coating Company, Inc., one of the largest medical device coating applicators in the world, specializing in PTFE and Teflon® coating applications. A separate co-located company, Precision Fabric, is a worldwide distributor and converter of PTFE coated fabrics, tapes and belts. Specialized metal finishing services are conducted through DCHN, LLC, an industry leader in technical aluminum and titanium anodizing, electro-polish and passivation, and other related services. Sanford Process Corporation provides hard coat anodizing solutions and intellectual property to a range of well-known OEMs and their prime subcontractors worldwide, with an increasing presence in Korea and China.

About Ironwood Capital
With over $400 million of capital under management, Ironwood Capital ( serves as a value-added partner for middle market transactions. Ironwood invests in subordinated debt and equity securities in amounts ranging from $5 million to $20 million to support business owners and financial sponsors in leveraged buyouts, growth financings and recapitalizations. For over 20 years, the principals of Ironwood Capital have built a firm based upon thoughtful underwriting, in-depth due diligence, creative deal structuring and vigilant portfolio management which benefits both its investors and portfolio companies.

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