Tenex has acquired the machinery and tools business of Walter Meier and formed JPW Industries

Lincoln International has announced the successful completion of the financing of JPW Industries, a portfolio company of Tenex Capital Management and a leading designer, marketer and distributor of metalworking and woodworking machinery and shop tools. JPW Industries was formed through a corporate divestiture of the machinery and tools business of Walter Meier AG and markets its products under the JET, Powermatic and Wilton brands.

Lincoln International acted as exclusive financial advisor to Tenex and completed the placement of an undisclosed amount of debt financing, which consisted of senior secured credit facilities and senior subordinated notes. Proceeds from the transaction were used to finance a portion of the acquisition price and provide for the company’s ongoing working capital and capital expenditure needs. The senior credit facilities were provided by NXT Capital LLC (Sole Lead Arranger and Administrative Agent), Sumitomo Mitsui Banking Corporation (Syndication Agent) and ING Capital LLC, and the subordinated notes were provided by Fifth Street Finance Corp.

As Tenex’s exclusive financial advisor, Lincoln International worked closely with the firm on all aspects of the transaction, helping to structure, arrange and negotiate the financing. Scott Galletti, a Managing Director at Tenex, stated, “Lincoln provided the Tenex team with a significant amount of leverage in a highly complex financing that involved significant cross-border and corporate carve-out considerations. With Lincoln quarterbacking the financing process, we were able to focus our efforts on operational diligence and transaction structuring while obtaining a very attractive financing package.”

Bob Horak, Managing Director and Co-Head of Lincoln’s Debt Advisory Group commented, “We are very proud of this transaction as it highlights the value add Lincoln provides in a complex deal. JPW Industries continues our strong relationship with Tenex and marks our third acquisition-related financing placement for Tenex over the last twelve months. We were thrilled to work alongside Tenex on this important transaction, and we continue to be impressed by Tenex’s highly detailed, thorough approach to due diligence.”

About JPW Industries

Headquartered in Nashville, Tennessee, JPW Industries designs, markets and distributes a wide range of metalworking and woodworking machinery and shop tools under the JET, Powermatic and Wilton brands. In addition to its Nashville headquarters, JPW Industries has operations in Switzerland, Germany, Russia, France, Taiwan and China, and sells through over 3,000 distribution partners in 30 countries. For more information, please visit www.jettools.com, www.powermatic.com, www.wiltontools.com.

About Tenex Capital Management

Tenex Capital Management, LLC is a private equity firm with over $450M of committed capital that makes control investments in middle market companies. Tenex utilizes an in-house team of hybrid professionals skilled in operational leadership, investing and capital markets structuring to maximize long-term value creation within its portfolio companies. Tenex is based in New York City. For more information, please visit www.tenexcm.com.

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