Information on the Target

CORE Industrial Partners ("CORE"), a private equity firm specializing in manufacturing, industrial technology, and services, has successfully completed its take-private transaction of Fathom Digital Manufacturing Corporation ("Fathom"), a leader in on-demand digital manufacturing services. Following this transaction, Fathom's Class A common stock has ceased trading and is no longer listed on the New York Stock Exchange.

Established in 1984, Fathom provides a diverse range of manufacturing capabilities, including 25 unique processes such as plastic and metal additive manufacturing, CNC machining, injection molding and tooling, and sheet metal fabrication. The company serves multiple industries, most notably technology, defense, aerospace, medical, automotive, and the Internet of Things (IoT). With its headquarters in Hartland, Wisconsin, Fathom boasts a nationwide presence, operating ten facilities that encompass approximately 420,000 square feet of manufacturing space. The company is recognized for its quality standards, holding various certifications, including ISO 9001, ISO 13485, AS9100, and ITAR.

Industry Overview in the Target's Specific Country

The digital manufacturing industry in the United States is experiencing rapid growth, driven by advancements in technology and increasing demand for customized manufacturing solutions. The transition to Industry 4.0 is reshaping traditional manufacturing practices by integrating automation, data exchange, and advanced manufacturing technologies. Companies like Fathom are at the forefront of this transformation, leveraging innovative approaches to enhance efficiency and reduce production costs.

Furthermore, the demand across various sectors, including aerospace, automotive, and healthcare, continues to rise, compelling manufacturers to adopt on-demand and flexible production methods. The shift towards sustainable manufacturing practices is also gaining momentum, with organizations focusing on reducing their environmental footprint while meeting customer needs.

In addition, the ongoing global supply chain disruptions have underscored the importance of local manufacturing capabilities. As businesses strive to mitigate risks associated with overseas manufacturing, the on-demand model offered by companies like Fathom is becoming increasingly attractive. This model allows businesses to respond swiftly to market changes and consumer requirements.

With the combination of technological innovation and an ever-evolving market landscape, the U.S. digital manufacturing industry is poised for significant advancements. Companies that can harness these developments will likely capture a larger share of the market while fostering long-term relationships with clients.

The Rationale Behind the Deal

The acquisition of Fathom by CORE Industrial Partners is strategically aimed at bolstering its position within the rapidly evolving digital manufacturing landscape. By taking Fathom private, CORE plans to enhance the company’s operational capacity and facilitate further innovation, allowing it to accelerate growth in alignment with market demands.

CORE has been an integral partner of Fathom since 2018, and this transaction reflects their commitment to providing sustained support and resources to the company. The decision to go private will afford Fathom greater flexibility and focus on long-term strategic initiatives, ultimately positioning it for continued success in the competitive digital manufacturing arena.

Information About the Investor

CORE Industrial Partners is a leading private equity firm dedicated to investing in the North American lower middle-market manufacturing, industrial technology, and services sectors. With over $1.58 billion in total capital commitments across four funds, CORE is well-equipped to leverage its extensive resources to foster growth and development in its portfolio companies.

Headquartered in Chicago, with additional offices in Austin and Cleveland, CORE comprises a team of seasoned professionals, including former CEOs and investment experts with a proven track record of building successful enterprises. The firm’s collaborative approach emphasizes partnerships with management teams, providing not only capital but also strategic insight and operational expertise to drive performance and create lasting value.

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This acquisition marks a promising opportunity for CORE Industrial Partners and Fathom, indicative of a well-considered investment strategy. The synergy between CORE’s substantial resources and Fathom’s manufacturing expertise positions the newly private entity for robust growth within the dynamic digital manufacturing landscape.

Furthermore, the ongoing demand for agile manufacturing solutions and the necessity for innovation in production processes underline Fathom's significant potential to expand its service offerings and client base. CORE’s backing will likely enable Fathom to enhance its capabilities and accelerate its initiatives in addressing client needs effectively.

CORE’s prior investment experience with Fathom since 2018 reflects its confidence in the company’s trajectory and the digital manufacturing sector. As the market continues to pivot towards on-demand production, Fathom is poised to capitalize on this evolution, making this acquisition a strategic move that could yield positive returns in the coming years.

Overall, this deal represents a thoughtful investment that not only benefits CORE’s portfolio but also significantly enhances Fathom’s potential to innovate and grow, ultimately benefiting its customers and employees alike.

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