Precision Associates Plans Expansion Post-Acquisition

Precision Associates Inc., a Minneapolis, Minn.-based manufacturer of rubber seals and O-rings, is planning an expansion after acquiring a 90 percent stake in fellow Twin Cities firm MMI Precision for approximately $2.3 million.

The founder of MMI, Shawn Martin, is the owner of the remaining 10 percent stake of the company. He described the deal as “more of a partnership than an acquisition” to local newspaper Twin Cities Business, saying the two parties came together with “a common goal.”

Precision’s Vice President of Development Adrian Kadue said the most attractive feature of the deal, which closed in the fall, was the value of leveraging both firms’ medical device customers and rounding out Precision’s offerings.

About a decade ago, Precision bought Delano, Minn.-based Sil-Pro, which provides contract manufacturing for medical device companies and specializes in silicon molding. MMI provides machining services for the medical and aerospace industries. Between the machining equipment and expertise, Precision and Sil-Pro now will be able to manufacture complete medical devices from start to finish, Kadue said.

MMI courted many acquisition offers before deciding Precision was the best fit.

Precision’s revenue totaled $17.4 million last year, while Sil-Pro’s reached $19.5 million, bringing the value of the combined companies to roughly $37 million in annual sales. Precision currently has about 170 workers and Sil-Pro has about 180, according to Kadue. Meanwhile, MMI generated roughly $3.5 million in revenue last year, he said, and the company has plans to grow MMI’s existing work force of roughly 30 workers.

The company will start by expanding MMI’s Ramsey, Minn., facility this spring.

“We’ve already added a few jobs but are looking to double the business in the next one or two years and expect to reach over 100 employees in seven to 10 years at MMI,” said Kadue.