Midwest Products and Engineering
Midwest Products and Engineering ("MPE") is a vertically-integrated contract designer, developer and manufacturer of complex electromechanical and robotic-assisted surgical systems for the medical device market. The Company offers front-end design, prototyping, precision manufacturing of custom metal components, full- and sub-assemblies, as well as post-manufacturing delivery logistics services, to its blue-chip and emerging OEM customers.
Past
Status
2019
Investment Date
2026
2026
Exit Date
Milwaukee, WI
Location
< $100M
Revenue at Exit
Products & Distribution
Sector
BPOC Value Creation
Proactive Sourcing
BPOC leveraged its prior experience with Paragon Medical, a contract manufacturing partnership that BPOC exited in 2018, to develop a value-add thesis for MPE. This thesis, along with BPOC’s industry relationships, experience and value creation playbook, differentiated BPOC during the MPE sale process.
Growth
BPOC’s thesis centered around targeted investments to enable MPE to shift its focus from custom medical carts to advanced electromechanical systems. We believe this shift increased the Company’s addressable market and allowed MPE to become a more valuable partner to its key customers. BPOC invested heavily to expand MPE’s capabilities in order to better serve its customers, adding prototyping capabilities, enhanced equipment, capacity and end-customer delivery logistics and inventory management post-manufacturing services. Additional investments were also made to expand MPE’s sales force and improve sales targeting, messaging and conversion.
Human Capital
BPOC closely supported Hank Kohl, MPE’s CEO, and the rest of the MPE management team on strategic planning, sales and marketing effectiveness and other key initiatives throughout the partnership. BPOC worked with MPE to hire multiple new executives, including a CFO, EVP of Business Development, VP of Sales Operations Planning & Supply Chain, Director of Operations and VP of HR, as well as other key functional executives and depth in finance, operations, IT, and human resources. BPOC also appointed Steve Meyer, BPOC Operating Partner and former CEO of Welch Allyn, as Chairman of the Board. Steve Meyer had also been the Chairman of the Board of Paragon Medical.
Technology and Operations
BPOC provided resources to aid MPE in executing meaningful annual cost savings through direct labor productivity initiatives and other operational efficiencies across its facilities. BPOC also supported MPE in its implementation of a new ERP system, enhancing its data capabilities and functional workflows, as well as FDA- and MDR-compliant QMS system.
Details on case studies have been included for illustrative purposes only and have been selected in order to provide examples of the types of investments made by BPOC and do not purport to be a complete list of investments. A complete list of BPOC investments is available upon request.
Details on selected active and former investments have been included for illustrative purposes only and have been selected in order to provide examples of the types of investments previously made by BPOC that fit within the current investment strategy; select investments do not purport to be a complete list of investments. Representative Past investments only include portfolio companies commencing with Fund III, which represents the time of the current partners tenure and the same investment strategy currently being deployed. Fund I and Fund II investments are included in the full list of investments here: (https://bpoc.com/all-investments/).
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See other examples of value creation
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