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Dow Jones LBO Wire, By Hillary Canada
November 15, 2011– Altus Capital Partners struck the first deal from its second fund, which closed last month at its $200 million hard cap, exceeding its initial target of $160 million.

The firm agreed to acquire Models & Tools, which makes tooling systems for commercial, defense and aerospace customers, for an undisclosed sum.

The company’s systems are used in the production of commercial airplanes and helicopters, including the 737, 747-400 and 777 and the Bell 429; defense aircraft such as the F-16, F-22 and Blackhawk helicopters; and NASA’s Orion Crew Exploration Vehicle. The company provides assembly fixtures, work stands, drill and trim tools, molds and facilities equipment featuring light automation.

Altus heard about Models & Tools during the summer from McGladrey Capital Markets, said Senior Partner Greg Greenberg. The company’s owner was looking for a liquidity event, but retained a small equity stake in Models & Tools, Greenberg said. The company’s management also kept a minority stake.

Greenberg explained that the tooling systems are customized to move specific aircraft parts–for example, a wing or a fuselage–throughout production, making the company’s products “mission critical” to the assembly process. The business is split fairly evenly between defense and commercial customers, said Greenberg.

As for expansion opportunities, there are a few others that operate in the same space as Shelby Township, Mich.-based Models & Tools, so expansion may be partly acquisitive, said Greenberg. But the “general focus” will be organic growth, he said.

Models & Tools Chief Executive Jeff Cunningham couldn’t be reached for comment.

Altus anticipates making between 10 and 12 investments from Altus Capital Partners II LP. The Westport, Conn., firm typically targets domestic manufacturers with enterprise values of $30 million to $100 million and minimum earnings before interest, taxes, depreciation and amortization of $5 million.

Altus Capital Partners – www.altuscapitalpartners.com
Phone: 203-429-2000

Models & Tools – www.modelsandtools.com