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Capstone Headwaters Advises MMi Sonora on its Acquisition by ARCH Global Precision, a Portfolio Company of The Jordan Company

February 2020

Irvine, CA - Capstone Headwaters, a leading middle market investment banking firm, advised MMi Sonora (“MMi”), a specialized contract manufacturer of precision machined components on its acquisition by ARCH Global Precision, a portfolio holding of The Jordan Company.  Terms of the deal were not disclosed.   

Founded in 1979, and located in Sonora, California, MMi manufactures high-precision components and assemblies, with expertise in providing precision manufacturing and engineering solutions for the rapidly expanding robotic-assisted surgical systems and instruments market.  MMi is a single-source provider for design and engineering support, CNC turning, gearing, milling, and Swiss machining services with quick-turn and prototype offerings in addition to high-volume long-term production. The Company is particularly adept at geometrically complex parts, applications which require exacting tolerances (± .0001”), and components which require multiple machining processes.  These advanced competencies are highly complementary to the existing precision machining capabilities at ARCH locations across the country, and the move bolsters ARCH as a leading, important and growing supplier to several end-markets.

“The timing is right for MMi to join forces with ARCH, a growth-oriented strategic partner, and this move will be beneficial for our employees and our loyal customers,” said William McDonald, former co-owner of MMi. “ARCH shares the vision and core values that we live by every day at MMi, and we are looking forward to our partnership with the ARCH team.”

Steve Woodward, former co-owner of MMi, agreed by saying, “This is an exciting new chapter for MMi and an opportunity for us to grow with a well-respected family of precision manufacturing companies that fully embraces the medical technology revolution.”

Regarding Capstone’s advisory role, William McDonald expressed “Time and time again, we both were just amazed at the level of professionalism, levelheadedness, and knowledge Capstone Headwaters brought to every situation.  For us, Capstone was the tide that came in and caused all the boats to rise.  We could not have done it ourselves.” 

David Bench, Capstone’s Head of Industrial & Manufacturing commented, “This exciting combination fast-tracks ARCH’s expansion into surgical robotics and enriches MMi Sonora’s core strength of continuous manufacturing improvement of highly-complex tight-tolerance components. We project robust M&A activity within precision manufacturing driven by the strong economy, continued outsourcing, reshoring of manufacturing, and technology advances such as multi-axis machining.”

Managing Director Eric Williams, head of Capstone’s Medical Device Contract Manufacturing vertical noted, “This marks our second deal in the med device sector in the past three months. We are witnessing firsthand an insatiable appetite for M&A opportunities from both private equity and strategic suitors which is driving up valuations for high quality outsourced providers with favorable financial profiles and presence in high growth sectors such as minimally invasive instruments, surgical robotics, and drug/device combination products.”

Lead Professionals

David Bench

Managing Director

Eric Williams

Managing Director
"Time and time again, we both were just amazed at the level of professionalism, levelheadedness, and knowledge Capstone Headwaters brought to every situation.  For us, Capstone was the tide that came in and caused all the boats to rise.  We could not have done it ourselves.” 
William McDonald
Co-Owner
MMi Sonora