Minneapolis-based Precision Associates, Inc., is charting growth after acquiring a majority stake in a fellow Twin Cities manufacturing firm.

Precision Associates, which manufactures rubber seals and O-rings, acquired a 90 percent stake in Ramsey-based MMI Precision for roughly $2.3 million, Adrian Kadue, Precision’s vice president of development, told Twin Cities Business.

Shawn Martin, who founded MMI in his garage roughly 15 years ago, retains about a 10 percent stake in the company. He described the deal as “more of a partnership than an acquisition,” saying the two parties came together with “a common goal.”

For Precision, the most attractive feature of the deal, which closed in the fall but has not been widely publicized, was the “synergistic value” of leveraging both firms’ medical device customers and rounding out Precision’s offerings, Kadue said.

About a decade ago, Precision bought Delano-based Sil-Pro, which provides contract manufacturing for medical device companies and specializes in silicon molding. MMI, meanwhile, provides machining services for the medical and aerospace industries, and its machining equipment and expertise will allow Precision and Sil-Pro to manufacture complete medical devices from start to finish, Kadue said.

Precision’s revenue totaled $17.4 million last year, while Sil-Pro’s reached $19.5 million, putting the combined company in the ballpark of $37 million in annual sales. Precision currently has about 170 workers and Sil-Pro has roughly 180, according to Kadue.

MMI, meanwhile, generated roughly $3.5 million in revenue last year, he said. And the company has plans to grow MMI’s existing work force of roughly 30 workers.

The company will start by expanding MMI’s Ramsey facility this spring. “We’ve already added a few jobs but are looking to double the business in the next one or two years and expect to reach over 100 employees in seven to 10 years at MMI,” Kadue said.

MMI drew interest from a number of suitors from across the country and received multiple offers, but Precision proved to be a “dynamite fit,” according to Dan Arcand, a broker at Twin Cities-based M&A firm Sunbelt Midwest who helped facilitate the deal.