Precision Manufacturing Group, LLC, Cedar Grove, NJ

In January 2001, DCC Growth Fund provided $1,250,000 as part of a $6,450,000 financing package to accomplish the change of ownership and control of Servometer, a manufacturer of miniature metal components. DCC Growth Fund and Argosy Partners (another SBIC) each provided financing as follows:

13% Subordinated Debt with warrant for 23% of company: $ 875,000
8% Series A Cumulative Redeemable Preferred Stock : $ 375,000
Total $ 1,250,000

The company manufactures electroform bellows, flexible shaft couplings, electrical contacts and lightweight electroforms. These components are used in instrumentation and other highly engineered systems and sensing devices to calibrate temperature, pressure, distance, and other physical properties. They are used in a variety of industries such as aerospace, military, instrumentation, medical devices, cryogenics, robotics, and valves.

Through leadership and marketing, sales are expected to grow from $7 million to $20 million over the next five (5) years and gross profit margins are expected to hold constant at 50%. The workforce of 76 is expected to increase as the company grows.

In March 2002 the Fund exercised the Warrant Certificate for $100, bringing the total invested in the company to $1,250,100.

In March 2003 the Fund provided an additional $110,000 in sub-debt financing to assist the company with a stock buy-back transaction. This funding brought the total financing provided to the company to $1,360,100.

For more information click on the link to the company web site:
www.servometer.com