Morgenthaler sells printing equipment company

American Industrial Partners (AIP) has bought Mark Andy Inc., a company that makes printing equipment for the tag and label industry, from Morgenthaler Partners.

No terms of the deal were disclosed. Officials at AIP and Morgenthaler declined to comment.

Morgenthaler invested in Chesterfield, Mo.-based Mark Andy from Morgenthaler Partners VIII, a $450 million hybrid venture capital and buyout fund that the firm raised in 2005, according to a regulatory filing. The exit comes as Morgenthaler is nearing a final close of a $400 million ninth fund.

The latest fund will be a venture-only effort, according to published reports, and the filling shows only venture-related investors as fund promoters. Menlo Park, Calif.-based Morgenthaler had previously invested in buyout and venture deals from the same fund. The buyouts side of the business will likely be on the market for its own fund in 2009, according to published reports, though the target is unknown.

Morgenthaler bought Mark Andy in September 2006 from Dover Corp. Terms of that deal were not released, though it was within Morgenthaler’s typical deal value range of $50 million to $250 million, according to press reports from that time. Revenue for Mark Andy exceeded $100 million in 2005, according to published reports.

New York-based AIP made the investment out of American Industrial Partners Capital Fund IV, a $405 million fund it closed in August. By the time the fund had closed, it had already committed about $50 million to three acquisitions since April 2007, according to the firm’s website. —Bernard Vaughan and Alexander Haislip