Azalea Capital has made an investment in Orbital Tool Technologies, a provider of in-house and on-site machining and repair services for utilities and power generation companies. Azalea made the investment in Orbital Tool Technologies through its third fund. To supplement Orbital’s organic growth, Azalea is seeking to acquire complimentary companies that also serve the power generation industry.
Keith Ravan, the former CEO of Power Equipment Maintenance (an Azalea Fund I investment), co-invested with Azalea in the Orbital transaction and has joined the company as CEO. Terry Orcholski, the Founder of Orbital, will remain with the company as President. Additionally, Dennis McLaughlin, former owner of The Atlantic Group, which was acquired in 2007 by Day & Zimmerman, co-invested with Azalea and will serve on Orbital’s Board of Directors.
Orbital Tool Technologies performs inspections, in-house and on-site machining and repair services, shaft and journal repairs, fan shaft restoration, and steam valve repairs for utilities and power generation companies. The company services the utilities, pulp and paper, municipal power, and turbine/valve OEM industries. Orbital Tool deploys field technicians, field service equipment, and numerous portable machine shops to handle both planned outages and emergency work. The company also performs in-house and on-site machining to remove and replace repaired parts, optical and laser alignment, reverse engineering, and turbine part replacement. Orbital Tool was founded in 1996 and is based in Belvidere, IL (www.orbitaltool.com).
“Orbital Tool is excited to be partnering with Keith Ravan, Dennis McLaughlin, and the Azalea Capital team,” stated Terry Orcholski, President of Orbital Tool. “Now more than ever, power utilities and OEMs are looking for dependable and customer-focused service providers. Azalea’s investment in Orbital will help us to further differentiate our service offering to our valued clients and to build on our 16 year reputation in the power generation industry.”
Azalea Capital invests in middle market companies that have minimum annual revenues of $10 million and EBITDAs of $2 million to $10 million that are located in the Southeastern US. Industries of interest include manufacturing, business services, consumer products, value-added distribution, and healthcare. Azalea Capital is seeking new investment opportunities for its third fund, The Azalea Fund III, L.P. Current portfolio companies of Azalea include Star Packaging (Atlanta, GA); Modus (Washington, DC); KLMK Group (Richmond, VA); ETAK Systems (Charlotte, NC); and Sunbelt Chemicals (Palm Coast, FL). The firm was founded in 1996 and is headquartered in Greenville, SC (www.azaleacapital.com).
PEPD 8-14-12
