Advantage Capital Partners and Rand Capital SBIC, L.P. Acquire New Monarch Machine Tool
BUFFALO, N.Y., Oct. 8, 2003 -- Advantage Capital Partners (New York, NY) and Rand Capital (Buffalo, NY) partnered with the management team of New Monarch Machine Tool in a $3.5 million acquisition of the Cortland, New York based Company.
New Monarch Machine Tool (Cortland, NY), was founded in 1909 and later developed the first contour cutting machine in the world. This has evolved into Monarch now producing high end Vertical Machining Centers, Production Machining Centers and Vertical Traveling Column Machining Centers. Monarch machines are highly regarded for their high precision and rugged durable designs by their customers who include General Motors, Ford, Pratt & Whitney, Ingersoll-Rand, Diebold and others. www.monarchmt.com
Mark Quinn, New Monarch's Chief Operating Officer stated, "Monarch has a long and successful history in the delivery of production machinery used by world class customers. We expect that many of these long time customers will continue to seek out New Monarch Machines, based on our reputation in the industry. John Keeler, Monarch's Managing Director and CFO stated, "We are very excited about the opportunities that lay in front of us. Financially and operationally stronger than ever, we are poised to continue the proud Monarch tradition of providing solutions for manufacturing's toughest applications."
Under the terms of the financing the investors will acquire a majority ownership of New Monarch Machine Tool. Allen F. Grum, President of Rand Capital stated, "We are excited about the future of Monarch Machine Tool and believe that we have provided the capital needed to grow the business, and that the company will be positioned to benefit from the recent up tick in the economy, leading to exponential growth in the earnings of Monarch." www.randcapital.com
In addition to the sale of new machines, Monarch has developed a strong revenue base of after sale, repair parts, service and retrofits to the thousands of Monarch machines currently in service throughout the world. All of Monarch's production, engineering, and sales operations are located at their award-winning, 155,000 SF facility in Cortland, NY.
Scott Murphy, Senior Vice President of Advantage Capital stated, "Advantage Capital was attracted to Monarch due to the tremendous growth prospects across the many different manufacturing sectors it services. We are also pleased to support and strengthen the manufacturing base of New York State companies, and particularly this Cortland, NY based company, which is headquartered in a New York State Enterprise Zone." www.advantagecap.com
Information in this press release contains forward-looking statements and reflect the Corporation's current beliefs. Numerous factors could cause actual results to differ materially. See the Corporation's Securities and Exchange Commission filings for a discussion of risks and uncertainties associated with venture capital investing that could affect actual results. Rand Capital Corporation undertakes no obligation to revise these forward- looking statements for new events and uncertainties.
About New Monarch Machine
Monarch Machine Tool offers to a worldwide market a wide range of CNC metalworking machinery including and is headquartered in Cortland, New York. For further information contact Monarch at 607.753.6001.
About Advantage Capital
Advantage provides capital and value added services to well-managed companies with superior growth potential. Advantage is a multi-state "certified capital company" (CAPCO), operating in Louisiana, Missouri, Florida, New York and Wisconsin.
About Rand Capital
Rand Capital is a publicly held Business Development Company (BDC) licensed by the Small Business Administration (SBA) as a Small Business Investment Company (SBIC). Rand is traded on the NASDAQ under the symbol "RAND". Rand is headquartered in Buffalo, NY.