The Effects Recapitalization Will Have on Micromeritics

In this interview, AZoM talks to Terry Kelly, President & Chief Executive Officer at Micromeritics, and Andrew Cialino, Head of Business Development at SFW Capital Partners, about the recent recapitalization of Micromeritics.

Can you let our audience know what type of products Micromeritics sells and the markets that they serve?

Terry: Micromeritics sells analytical instrumentation in laboratories all around the world, and we excel in four particular areas: the measurement of particle surface area, particle porosity, particle flow, and solid particle density. These instruments can be sold across a broad range of markets, including energy, chemicals, academia, personal care, and pharmaceuticals. They are found in some of the world's most prestigious industrial, academic, and government laboratories.

What makes Micromeritics so special?

Terry: Micromeritics has deep expertise in delivering better measurements than any other supplier. We have a well-differentiated technology that can cover a broader range of measurements across a broader range of materials and ultimately give scientists better answers.

What made Micromeritics such an attractive option for SFW to want to invest in the business?

Terry: It is a fantastic opportunity for several reasons. One, it's a market-leading brand and those brands don't come up for sale very often in the analytical instrumentation sector. We did a lot of research on Micromeritics before we made the investment and customers all around the world confirmed that Micromeritics has market-leading technology and customer service. Micromeritics’ instruments are the preferred choice in a lot of different laboratories. Lastly, given the broad applicability of Micromeritics’ technology, it has a well-diversified customer base.

Andrew: One other thing to note was that SFW’s partners and Micromeritics’ management team had an aligned vision about how to build Micromeritics through its next set of strategic growth initiatives. Some of those examples include new product introduction, expanding the company's applications to different end markets, looking at new add-on acquisitions and then continuing to expand globally on all of Micromeritics’ capabilities in sales, marketing, and service.

What were the principles of SFW that Micromeritics thought were important when deciding to do business with them?

Terry: I think the most important aspect of SFW that led Micromeritics to choose us as a partner, is SFW’s deep expertise and knowledge within the analytical instrumentation sector. In addition to SFW’s focus on the sector, I think Micromeritics was attracted to the idea of having a strong team that they could bring in to help develop and execute on a strategic growth plan.

Could you just expand on what experience in the analytical sector that SFW brings to Micromeritics?

Andrew: SFW's principals have supported, over the last 25 years, the growth and development of some of the most highly regarded companies in the analytical instrumentation sector, including companies such as Waters Corporation, Mettler Toledo, Spectro Scientific, and Essen BioScience. As part of this sector focus, our partners have developed strong relationships with talented operators like Terry.

So how has the recapitalization of Micromeritics changed the current corporate structure of the business?

Terry: The corporate structure remains basically the same. I am now the CEO and some of the equity has changed hands. With all that, we plan to invest in expanding the capabilities of Micromeritics to enable our teams to grow and operate more effectively.

What does the recapitalization of Micromeritics by SFW mean for the future?

Terry: The most important thing is that Micromeritics now has an experienced and strong financial partner to pursue the growth opportunities that Andrew talked about, whether it's geographic expansion, or continued and sustained investment in research and development so that we can drive organic growth through continuous innovation. Also, we think there are a lot of exciting opportunities in the fragmented materials characterization market to acquire some complementary technologies and offer more leading technologies to the customers in materials labs.

About Terry Kelly

Terry Kelly is the CEO and President of Micromeritics Instrument Corporation and an Operating Partner at SFW Capital Partners. Previously, he spent 14 years as President of TA Instruments, a subsidiary of Waters Corporation (NYSE: WAT). TA Instruments is the leading manufacturer of analytical instruments for thermal analysis, rheology, and microcalorimetry. As President, Mr. Kelly oversaw all functions, including research and development, manufacturing, sales, marketing, service, and more. During his final three years at TA Instruments, he was a Member of the Executive Committee at Waters Corporation. Mr. Kelly has a B.S. from the University of Delaware.

About Andrew Cialino

Andrew Cialino is a Vice President and Head of Business Development with SFW Capital Partners. He oversees SFW's deal origination and marketing activities. He previously was the Head of Sales at Axial, the leading deal network for middle-market M&A professionals. Prior to Axial, he worked as an M&A Integration consultant at Autodesk and a Controller at Horizontal Systems, a niche software company that served the architecture, engineering and construction industries. Mr. Cialino earned a B.A. in Economics from the College of the Holy Cross and an MBA from Columbia Business School.