BlackEagle Partners and Apollo Management Acquire a Significant Investment in Federal Broach & Machine Company

BLOOMFIELD HILLS, Mich.--BlackEagle Partners, LLC and a unit of investment firm Apollo Management have made an equity investment in Federal Broach & Machine Company (“Federal”). William and Robert Martin, the current owners and operators of the business, will continue to manage Federal going forward and retain a substantial equity stake in the business. Federal is one of North America’s largest manufacturers of specialized broach machines and broach tools. The terms of the transaction were not disclosed.

Federal, headquartered in Harrison, Michigan since 1979, has four facilities, two in Michigan, one in South Carolina and one near Ft. Lauderdale, Florida. Federal, which has manufactured precision tools and machines since 1952, markets its products to leading Fortune 500 industrial companies in the automotive, heavy duty truck, aerospace and agricultural industries. “The Martin family has built a world class company and we are looking forward to partnering with them going forward,” said Jason Runco, a partner with BlackEagle. “Federal Broach has a great product and is a leader in its industry. We are attracted to the niche market and the top-tier management team,” said Matt Constantino, the partner who led the transaction for Apollo.

“The partnership between BlackEagle and Apollo was a natural fit for this investment. BlackEagle’s focus on the lower middle market industrial space and operational improvement capabilities coupled with Apollo’s deep industry expertise and significant financial resources, position Federal Broach very well for future growth,” said Garrett Kanehann, partner of BlackEagle.

BlackEagle Partners, LLC, with offices in Bloomfield Hills, Michigan and New York, is an operationally focused, middle market private equity firm. In addition to Runco and Kanehann, BlackEagle partners include Mike Madden, former partner at Questor Partners Fund and Harry Watson, founder of Caledonia Group, a lean manufacturing consulting firm. For more information, please visit www.blackeaglepartners.com.

Apollo is a leading private equity, debt and capital markets investor with more than 16 years of experience investing across the capital structure of leveraged companies. The firm employs more than 70 investment professionals and has offices in New York, London and Los Angeles. Since its inception, Apollo has invested over $16 billion in a wide variety of industries both domestically and internationally. The firm’s most recent private equity fund and its co-investment affiliate has capital commitments of $11.6 billion.