Baywood Holdings acquires J.B. Anderson & Son

Baywood Holdings, a regional private equity firm, has acquired J.B. Anderson & Son, Inc., a manufacturer of MODION ion pumps, vacuum technologies and custom mechanical assemblies based in Pennsylvania. IAG M&A Advisors acted as sell-side adviser, and senior adviser Kris Quistgard led a marketing process of about 10 months.

The company was founded in 1941. The acquisition supports Baywood's buy-and-build strategy of consolidating precision machine shops in Pennsylvania.

IAG said preliminary valuation came in at about $1.2 million, and lenders capped senior debt at $1.8 million. The seller required $2.5 million in cash-equivalent value without seller notes, so the parties used a $1.8 million bank tranche, $200,000 of cash at close, and a $500,000 consulting agreement and earn-out.