KMM Group & RS2 Healthcare Partners
Middle Branch Partners advised KMM Group during its investment from RS2 Healthcare Partners
About KMM Group
KMM Group of Hatboro, Pennsylvania is a vertically integrated precision contract manufacturer specializing in complex, tight-tolerance components for the medical device industry and other highly demanding markets. The company solves failure-intolerant engineering challenges through integrated manufacturing capabilities, deep technical expertise, and scalable production for a blue-chip customer base.
Their capabilities and services include:
Precision machining and centerless grinding for complex, tight-tolerance medical device components.
Ultra-precise guidewire and corewire grinding for interventional and diagnostic devices.
Third-party process management supporting complex, multi-step manufacturing programs.
Dedicated research and development resources supporting new product introduction and process innovation.
KMM Group is headquartered in Hatboro, Pennsylvania, and serves the MedTech, aerospace, defense, high tech, and space exploration industries.
KMM Group now has an investment from RS2 Healthcare Partners, a Boston-based private equity firm exclusively focused on healthcare investing in the lower middle market.
KMM's culture has long centered on founder-led engineering discipline and hands-on customer partnership. As part of the investment, co-founders John Shegda and Eric Wilhelm remain in senior leadership roles, continuing to guide the company's technology strategy and operational growth, while industry veteran J. Mark King joins as President and CEO to lead the company's next chapter.
Our Work
M&A Strategy
Co-founders John Shegda and Eric Wilhelm recognized that KMM needed an institutional capital partner to support the growth opportunities ahead and had already begun down-selecting from a small group of private equity firms. At the same time, they concluded that having a trusted advisor in their corner would strengthen their negotiating position throughout the process. Given a decade-long relationship with the firm, John and Eric selected Middle Branch Partners to represent them.
M&A Due Diligence
Middle Branch Partners advised John and Eric on prevailing market multiples and the range of effective transaction structures available to them, helping sharpen their thinking as they evaluated the private equity firms already on their list.
Evaluating Investment Opportunities
RS2 Healthcare Partners stood out for its exclusive focus on lower middle market healthcare investing and its direct experience scaling contract manufacturers in the medical device space. Our team confirmed that a partnership with RS2 would fit KMM's goals: continuity for customers and employees, an expanded leadership bench, and capital to support long-term growth, with a plan for John and Eric to remain in senior leadership focused on technology strategy and operational execution.
Negotiating the Investment
Middle Branch Partners advised on a Letter of Intent agreeable to both KMM and RS2, then advised KMM throughout due diligence and worked closely alongside the company's legal counsel to carry the transaction to a successful close, aligning the deal structure with the leadership transition so customers and employees experienced continuity throughout.
Results
The transaction closed with RS2 Healthcare Partners' investment in KMM Group and the appointment of J. Mark King as President and CEO. John Shegda moved into the role of Chief Technology Officer, and Eric Wilhelm was appointed Executive Vice President, Business Transformation & Organizational Capability. The outcome positions KMM for its next phase of growth while preserving the engineering culture and customer commitments that built the company.
“KMM has earned customers’ trust by solving complex manufacturing challenges that many others simply cannot do. I am honored and excited to continue building on KMM’s momentum.”
President & CEO of KMM Group
“KMM Group’s founders built something genuinely differentiated — technical depth and a customer-first culture that’s hard to find in this market. Matching that with RS2, a partner who understood exactly what to protect and where to invest, is exactly the kind of outcome we aim for on every engagement.”
Partner, Middle Branch Partners
