What happened
On August 3, 2026, Windings Inc. announced that it had acquired Machine Tool Engineering, Inc. ("MTE"), a North Iowa precision machining business, in a transaction that closed on July 30, 2026. Founded in 1976 and holding ISO 9001 and AS9100 certifications, MTE provides CNC turning, milling, grinding and Swiss machining for mission-critical industries. Windings described the deal as a strategic vertical integration that brings long-lead-time precision machining in house, reducing supply chain risk and sharpening cost and lead-time efficiency. Financial terms were not disclosed. Windings was advised on the transaction by BCC Advisers, an ESOP advisory, investment banking and business valuation firm in Des Moines, Iowa.
The buyer
Windings, Inc. is an employee-owned company headquartered in New Ulm, Minnesota. Founded in 1965, it designs and manufactures custom motors, rotors, stators, lamination stacks and insulation systems for aerospace, defense and industrial customers. Chief executive Heather Braimbridge-Cox called the acquisition a major milestone in the company's 2030 vision and said it creates long-term value for its employee-owners. Sarah George, president of Machine Tool Engineering, said: "Joining forces with Windings is a natural next step for our team, our customers, and our community."
Why buyers want businesses like this
Certified precision machining capacity is scarce, and aerospace and defense customers will not accept unqualified suppliers. AS9100 approval, a trained machinist workforce and a record of holding tight tolerances take years to build. For a manufacturer that currently outsources machining, buying a qualified shop removes a dependency it cannot otherwise control.
What it means if you own a similar business
A machine shop with aerospace or defense certifications is often worth more to a customer or supplier in its own chain than to a general buyer, because the value lies in removing their risk rather than in your margin. Knowing which of your approvals and customer qualifications would be hardest for a buyer to replicate is a good place to start.
Read more in our guide to selling outright.
Source: PR Newswire, August 3, 2026
Summary of a public announcement; ExitBuy Co. was not involved in this transaction. General information only, not investment, legal or tax advice.
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