Talon Precision purchases Baron Machine, remains committed to 70-year mission

LACONIA — Roger Baron launched Baron’s Machine Company from a garage on Winter Street in 1957. Over the next 69 years, the company expanded to serve an international market that includes ultra-high precision milling and turning services for medical machines and devices, components for the aircraft and aerospace industries, and classified work for the defense industry.

Acquisition of the third-generation, family-owned business by Talon Precision, Inc., on Aug. 19, has taken it to the next level, by providing the capital necessary for continued growth.

“I had the company up to a point where it was ready for the next stage, which was going to be, I go and take a loan for a bunch of money to make a bunch of improvements,” said Baron Machine President Jeremy Baron. Instead, Talon Precision presented a better option.

Talon Precision’s website states its interest in purchasing companies like Baron Machine: “Thousands of shops are owned by founders approaching retirement. Without the right buyer, the shops close. Skills disappear. Supply chains fracture. We exist to change that outcome.

"Talon is combining deep manufacturing expertise with the capital and operating systems to propel each shop forward to meet the biggest challenges of the 21st Century.”

“Baron Machine is a rare combination. They have a wide range of capabilities, a strong commitment to operational excellence, and are well-positioned for continued growth,” Talon Co-founder and Chief Operating Officer Joe Rios said of the purchase of the Laconia shop. With Talon’s investment, “Baron Machine can take on more of the demanding, regulated work its customers depend on, while preserving everything that has made this company great.”

“Baron Machine is a great example of American manufacturing excellence, and is perfectly aligned with our mission at Talon Precision,” said Kyle Veatch, co-founder and chief strategy officer.

“The big thing that mattered the most to me was making sure all of our employees were taken care of," Baron said. "It’s almost like I made the decision for the employees — like, you know, we want to get somebody that’s going to invest a bunch of money in some new equipment, and take care of the employees.”

On that count, Baron said, Talon has “just been really true to their word. They really don’t want to change anything. They want to keep this the same family-owned and operated business.”

What the acquisition means for Baron Machine is the ability to purchase new equipment, including a new milling machine for fabricating parts to meet its five-year defense contract, supporting a surface-to-air rocket launcher program.

“We obviously have a grinding machine,” Baron said. “They’re looking at bringing in another one that’s gonna be over a million-dollar purchase, and new inspection equipment we’ve been talking to them about, and all sorts of stuff.”

After Roger died at age 42 in a plane crash on Dec. 6, 1970, his son Kim Baron took over the family business, and started courting a larger client base. As he got to know more customers, Kim was able to develop a client list that included Osram Sylvania. At one point, Baron Machine employed 80 workers.

Jeremy took over for his father, Kim.

“Everything was all manual at that time," Jeremy said. "Then I think it was 2014 or ’15 when I took over, and I made the big push.” Baron Machine had to adjust to meet the quality requirements of the aerospace industry.

“That’s when I kind of — I don't want to say changed the direction of the company, but I guess that’s really the only way to describe it — got heavily into aerospace and the defense markets. The medical line kind of started along the same time, because they require stringent quality requirements, as well.”

Driving that new direction was the impact from overseas suppliers.

“What I saw with the commercial stuff was we were constantly competing with China and India. So, the light went off. It’s like, 'Well, how can I compete with those people?' Then it was like, 'Oh, well, I’m gonna have to work for the military and the aerospace industry. They’re the industries where they can’t go overseas.' So generally, that’s what made that jump. We’ve got a list of probably over 30 good customers that we’re servicing right now.”

The medical line has included parts for equipment like mammogram machines and some some surgical instruments, but Jeremy said they never got into things like replacement joints.

“We started off doing the aerospace stuff for third-tier" companies, he said. “We were making parts for somebody else that was then selling them to the General Dynamics and the Lockheed Martins and such. So it wasn’t until about five years ago where we started getting approved by some of these prime contractors, as they're called, and working directly with them.”

Talon Precision is helping continue that growth, with Jeremy in charge for at least three years.

“I can’t believe how hands-off they have been,” he said. “I couldn’t be more honest when I say that. They want to meet with the people on the floor, what we struggling with, and they’re trying to provide answers and make us more efficient.”

That will include adding automation for some of the processes that depend upon new skilled employees, which are hard to find, Jeremy said. Still, “They want to keep this the same family-owned business and family-friendly business that it has been, and they’ve done nothing but proven that so far.”

If Baron’s technicians bring years of service in the industry, Talon also has seasoned leadership to help guide the business going forward. Rios, for instance, previously served as chief of staff and program manager for military engines at Pratt & Whitney.

Talon Precision’s website says it is backed by “$75 million of initial equity capital from a select group of business builders and long-term-oriented investors” with a focus on quality, reliability, and precision. “It also makes precision hardware for launch vehicles and spacecraft — parts that have to work the first time, every time.”