Computer Aided Technologies in the Acquisition of MCAD Technologies

Computer Aided Technologies and MCAD

Mangrove Equity Partners is pleased to announce our recent partnership with Computer Aided Technology, LLC (“CATI”) and MCAD Technologies, Inc (“MCAD”), to create one of the nation’s largest value added resellers of SolidWorks 3D computer aided design software and Stratasys 3D printers.

The combination of CATI and MCAD created the nation’s only SolidWorks/Stratasys VAR covering all four Continental U.S. time zones.

Highlights of Mangrove’s partnering with these companies include:

  • Supported CATI and our portfolio partners through the add-on acquisition of MCAD, increasing the company’s EBITDA by 60% within 6 months of our partnership.
  • The add-on was non-dilutive of CATI management’s ownership, and expanded CATI’s geographic reach and customer industry diversification.
  • Our majority recapitalization with CATI evidenced Mangrove’s flexibility, as we supported the plans of one owner/manager to retire, while allowing other owner/managers to continue running the business with the support of Mangrove’s four-person internal operating team.
  • Closed and facilitated financing despite extreme supplier concentration inherent in the industry, having built strong relations with the suppliers.

Mangrove Equity Partners: More Than the Commodity of Cash. The Mangrove team works hard to be your go-to private equity fund in the lower middle market by leveraging our extensive experience (132 deals across 59 industries) to make decisions quickly and get deals done.

Mangrove’s four-man internal operating team affords us an ability to leverage their extensive experience working closely with our portfolio company partners to overcome hurdles to growth, and optimizing shareholder value.

The Mangrove team has exemplified an attitude and practice of partnership with our deal sources over the past 25 years. We roll up our sleeves and work with intermediaries to do what is necessary to move good deals forward, even in the face of company or deal complexity.

If an opportunity is not a fit for Mangrove’s criteria, we endeavor to provide accurate and helpful suggestions as to who may have a pointed interest.

Our goal is to help our deal sources get their deals done and accordingly, become their go-to fund in the lower middle market.

We hope to have the pleasure of working closely with you.