Proceeds will go toward debt repayment, working capital, growth capital and general corporate purposes.
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The Elmet Group Co. — a provider of precision-engineered components and advanced high-energy systems with facilities in Lewiston and Gorham, with headquarters in Portland — raised $125.5 million in an initial public offering last week.
Elmet (Nasdaq: ELMT) said it will use the proceeds, together with its existing cash and restricted cash, to repay debt, with the remainder to be put towards working capital, growth capital and general corporate purposes.
The shares began trading on the Nasdaq Capital Market on April 23.
The net proceeds exceeded expectations to raise of $92 million to $108 million that was projected when Elmet launched the IPO roadshow on April 14.
The Elmet Group, headquartered in Portland, consists of Elmet Technologies in Lewiston and Microwave Techniques in Gorham.
Cantor Fitzgerald & Co., a New York-based global financial services firm, acted as lead book-running manager for the offering. Investment banks Needham & Co., based in New York City, and Canaccord Genuity, based in Vancouver, Canada, acted as joint book-running managers. Newport Beach, Calif.-based investment bank Roth Capital Partners acted as co-manager.
New York law firm Ellenoff Grossman & Schole LLP was Elmet’s legal counsel. Washington, D.C., law firm Thompson Coburn LLP acted as legal counsel to the underwriters.
What it does
The Elmet Group is a provider of precision-engineered components and advanced high-energy systems for the aerospace, defense, government, industrial, medical, semiconductor, electronics and energy industries. The company operates through two segments, critical materials components and engineered microwave products.
A decade ago, Portland-based Anania & Associates Investment Co. acquired Elmet Technologies, which at the time was a struggling Lewiston manufacturer.
“The story is less about the offering itself and more about a long-term strategy that runs counter to traditional private equity — one focused on reinvestment, workforce and regional manufacturing,” an Elmet spokesperson told Mainebiz.
