P&M Corporate Finance (PMCF) is pleased to announce that it served as the exclusive financial advisor to Hatch Stamping Company (Hatch) in a recapitalization transaction involving the management team and Prophet Equity (Prophet Equity) of Southlake, Texas.
Headquartered in Chelsea, MI, Hatch is a leading manufacturer of complex metal stampings and assemblies to the automotive industry. Through its six manufacturing centers of excellence, including a state of the art facility in Queretaro, Mexico, Hatch supplies the world’s leading manufacturers of fuel, braking, roofing, and interior automotive systems with complex safety critical metal components and mechanisms. The Company’s 375,000 sq. ft. of combined production space include a broad spectrum of value-added capabilities, including robotic welding and subcomponent assembly, e-coating, in-line vision inspection and error detection, prototype design and construction, and full tool and die-build and repair. Combining the most advanced and efficient automation, production, and secondary operation equipment with in-house engineering resources, Hatch has established itself as a trusted manufacturing partner to a marquee and global customer base of Tier 1 automotive suppliers.
“I could not be more pleased with the outcome of this transaction,” said Ron Hatch, owner of the Company. “After many years of supporting Hatch’s geographic, production capability, and end market growth, I am excited to partner with the management team and Prophet Equity to continue our mission of manufacturing excellence and to capitalize on the growth opportunities afforded to Hatch Stamping.”
Brian Hegi, Principal of Prophet Equity said about the transaction, “We are excited to support the management team and Mr. Hatch in the Company’s growth. With years of operational and strategic acumen in the automotive industry, Prophet Equity will be a collaborative partner to help management and Mr. Hatch explore and evaluate opportunities and to create additional value.”
Phil Gilbert, Managing Director of PMCF, states “This transaction is an excellent outcome for all parties involved. In addition to achieving a personal liquidity event, Mr. Hatch has found an operationally-oriented partner that is supportive of the Company’s proven strategy. Through its investment, the management team has aligned itself with the success of the organization it manages and is in a position to reap the rewards of its efforts. Finally, Prophet Equity has made an investment in an industry leader with an established brand, a strong reputation, and an excellent management team.”
Regarding the transaction process, Mr. Hatch stated, “PMCF was the perfect advisor for me and to the Company. In addition to managing a robust auction process in which the many value attributes of the Company were presented to the market, PMCF consistently offered valuable transactional, operational, and financial insights and perspectives that guided me and the Company through the Closing. I am most pleased with their services.”