EDEN PRAIRIE, MNPlatinum Group announced that its private equity fund acquired the assets of G.C. Peterson Machinery Co. The 80-year-old company distributes and services many brands of woodworking equipment for cabinet shops, technical schools, millwork companies and other woodworkers.

The firm’s private equity fund, Platinum Group Holdings II, acquired the assets in a transaction worked out between the previous owners, who had been hurt by the severe recession within the housing industry and customers that have reduced their capital equipment spending. The fund seeks majority positions in under-performing companies or those in critical transition in need of turnaround capital and management expertise.

One of the former owners, Gerry McDonald, will continue with the company in a sales capacity. According to McDonald, “Platinum has the resources and management experience to stabilize the company and establish the infrastructure for potential growth. In addition to my sales role, I am committed to making the transition as smooth as possible to meld Platinum’s management with our organization so that we may aggressively go after the market.” McDonald and his partner had purchased the company in 1993.

Platinum partner Bob Stewart was appointed CEO. His leadership background includes serving as president of the Merchants’ Exchange in Minneapolis and management roles for Cargill Inc. Allen Snyder, a financial consultant, is the newly hired president. He has been with the company for the past 18 months.

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