Axia Capital Partners leads Buy-out of Cable Designs and Manufacturing to form Segue Manufacturing Services, LLC
December 7, 2007
For Immediate Release
Lowell, MA., Axia Partners today announced that it formed Segue Manufacturing Services, LLC (Segue) and syndicated a leveraged financing to acquire the assets of Cable Designs and Manufacturing (CDM). CDM was founded in 1991 to provide design and production of custom cable and harness assemblies, but has since expanded into full turnkey electro-mechanical assembly, including precision machining to support its in-house assembly business. CDM has grown by nearly 50% per year over the past two years to emerge as a leading full service contract manufacturing business serving mid market customers, producing highly engineered products at moderate volumes with high mix.
Segue will be led by new CEO, Peter Frasso, who has an extensive operations background as COO of FEI and VP of Global Operations at Brooks Automation. Previously, Peter was General Manager of Varian's Vacuum Instruments Division which was twice named as one of the Best Plants in America by Industry Week and won the Massachusetts Quality Award. CDM's CEO and owner, Bill Roderick, has retained a significant equity position in Segue and will continue with the company and focus his efforts on major account sales.
“Axia partnered with Peter Frasso to identify a strong and differentiated contract manufacturing firm with strong customer relationships that provides a platform to expand our services”, said Jim Pelusi, Managing Director of Axia Capital Partners. “We are delighted to have concluded our acquisition of CDM, who has an excellent track record of growth, a strong management team and a reputation for customer service. Furthermore, we are excited about teaming with Peter Frasso and are confident that the leadership he brings to Segue will enable the company to emerge as the leader in its targeted market”.
“CDM provides a strong operational platform to grow from”, stated Peter Frasso. “We have already begun to expand CDM's foundation of contract manufacturing into additional value-add services, such as product engineering service and global supply chain management. We are pleased with our partnership with Axia, not only in sourcing and negotiating the transaction, but also working jointly with Axia to develop a clear strategy for differentiated growth”.
Bill Roderick stated, “The sale of CDM provides an opportunity to grow CDM into a full service, global partner to our customers while at the same time achieving my personal objectives and retaining a significant equity ownership in Segue. I look forward to working with Peter and Axia to develop Segue into the leading contract manufacturer in the region.”
Segue Manufacturing Services (www.segue-mfg.com) is one of New England's leading contract manufacturers, providing a wide range of services that includes Turn-Key Manufacturing, Electro-Mechanical Assembly, Cable Design and Fabrication, Global Sourcing, Machining and Product Engineering. Segue is the prime supplier to some of the regions most innovate companies in the military, solar, medical, semiconductor and industrial markets. The Company's success is based on its ability to provide high value, cost effective manufacturing solutions from its modern 40,000 square foot manufacturing facility and through leveraging its engineering services and global sourcing capability.
About Axia Partners
Axia Partners (www.axia-partners.com) is a private equity investment and advisory firm that is dedicated to increasing the equity value of our portfolio companies and clients through active participation that leverages the operational experience and in-depth market knowledge of our General Partners.