Praesidian Provides $8.5 Million to Finance Recapitalization of Leading Global Welding Equipment Company

ARC Machines, Inc.’s Management Team and Marwit Capital Partner with Leading Mezzanine Provider to Drive Growth

Praesidian Capital, a leading provider of mezzanine capital for small and mid-sized companies, has provided $8.5 million of senior subordinated debt and $250 thousand of equity to support the recapitalization of Arc Machines, Inc. (“AMI”) by Marwit Capital and AMI Management.

Headquartered in Pacoima, California, AMI is the leading designer, manufacturer and distributor worldwide of a broad range of automated orbital welding equipment which is sold to a blue-chip client list in a wide variety of industries aerospace, semiconductor, bio-pharmaceutical, nuclear, power generation, shipbuilding, defense, dairy/food processing, oil & gas installations and petrochemical.

At Praesidian we like to partner with experienced equity sponsors and quality management teams to take strong businesses to the next level of profitability and success, said Jason Drattell, Managing Partner at Praesidian. The owner-operators of Arc Machines have built a market-leading position over the past 32 years. With its long history of profitability, well-conceived business plan and top notch management team, led by David Sherrington, to execute that plan, we believe the prospects for Arc are great.

Arc Machines has a reputation for product innovation and operates in a number of high growth industries, said Matthew Witte, Managing Partner at Marwit Capital. With the support of Praesidian and Marwit, the company is in prime position for further development of products and services and expansion in both the domestic and international markets.

Praesidian’s knowledge of the industrial sector stands out among mezzanine firms. said David Sherrington, CEO of Arc Machines, Inc. We are proud of our business, and we are very excited to be working with partners who have a track record of positioning middle-market companies for sustained success.

About Praesidian Capital
Praesidian Capital partners with small and mid-sized businesses, providing private debt capital. With a focus on its core competency in mezzanine financing, Praesidian invests in established, historically profitable companies often in connection with a management/leveraged buyout, recapitalization or refinancing. Based in New York City, Praesidian manages over $400 million in committed capital. For more information, visit www.praesidian.com

About Arc Machines, Inc.
Headquartered in Pacoima, California, Arc Machines is the leading worldwide developer and manufacturer of automated orbital welding systems, including power sources, weld heads, arc zone vision systems and related accessories. Further information is available at www.arcmachines.com

Media Contact: Dan Jacobs
Broadgate Consultants, LLC
Phone: 212 232 2227