Accord Precision Limited (Accord), one of NZ’s largest certified precision manufacturing business, has been acquired by an investment company managed by EverEdge Capital – an operational-focussed investment firm.
Accord was founded in 1970 by the Hanson and Stronge families and has become a dominant business in precision design and manufacturing in New Zealand. Accord has more than 70 employees and focuses on producing high-value components, often in repetitive runs, which involve multiple engineering processes and subcomponents including metal injection mouldings, castings, forgings, laser cut parts.
Accord was formerly an operating subsidiary of the McKechnie Group, a pioneer in metal extrusion and engineering in New Zealand since 1951. The business was acquired from McKechnie Group in early 2000’s and has since been owner-managed by its CEO Alec Mandis, and COO Vie Wieland.
About Accord Precision
Accord Precision provides complete end-to-end solutions for new product development, from concept, feasibility, consultation and design through to manufacturing, quality control and traceability for fully assembled and packaged products. As such, Accord is seen as a total solutions provider backed by a modern workforce and state-of-the-art manufacturing facilities and machinery with a proven track record. The firm has several high-profile OEM customers and has recently pivoted towards the high-growth medical device market. The business operates two production facilities in Auckland.
Under their management Accord successfully transitioned from conventional ‘machining’ to advanced design, prototyping, manufacturing, and assembly of precision components for medical devices and industrial products. The business achieved close to NZD $30 million in sales for the year ended 31 March 2021, primarily from global Tier 1 OEM customers including John Deere, Kirby Morgan, Assa Abloy and F&P. Accord is internationally accredited and one of the only FDA certified precision manufacturers in New Zealand.
The acquisition of Accord was undertaken by the team at EverEdge Capital led by Francis Milner, an experienced operational investor who has owned and operated industrial businesses globally.
About EverEdge Capital
EverEdge Capital is the principal investment business and subsidiary of EverEdge Global. EverEdge Capital focuses investment in mid-market companies where sustainable value can be generated through operational investment and proprietary intangible asset intelligence. EverEdge Capital is targeting companies in the upper mid-market with revenues >$30m and which have an established operating model.
EverEdge Capital undertook the acquisition to facilitate the next phase of growth and development for Accord while enabling retirement of Accord’s owner-managers. The business has a very strong pipeline of work and is actively recruiting skilled employees to support customer demand.
Commenting on the transaction Milner says, “Despite Accord being relatively asset heavy, we identified that some of its most valuable elements are intangible and off-balance sheet. These assets are what gives the business its competitive edge and help explain how Accord has secured global Tier 1 OEM customers from ‘down-under’ while remaining highly profitable.
“As intangible assets can be scaled exponentially, we are looking forward to building on the strong foundations already in place and to leveraging these assets to grow the business and improve margins.”