Summit Park has recapitalized Tennessee Industrial Electronics (TIE), a supplier of new and refurbished parts for computer numerical control machine tools. This transaction marks Summit Park’s first investment in its second fund, Summit Park II, LP, and the initial closing of the fund occurred concurrent with the closing of the TIE acquisition.
Tennessee Industrial Electronics provides parts and repairs for FANUC computer numerical control (CNC) systems. FANUC Corp. (Yamanashi, Japan) is one of the largest makers of industrial robots in the world. TIE has over 50,000 FANUC drives, motors, and controls in inventory and provides next-day delivery to machine tool users throughout the United States. The company was founded in 1992 by Bobby Haynes and is headquartered southeast of Nashville in La Vergne, TN (www.fanucworld.com).
As a part of the transaction, Douglas Peterson, a former executive at GE Fanuc Intelligent Platforms with responsibility for the CNC Business division, and Douglas Albert, also a former executive at GE Fanuc with responsibility for the Embedded Systems division, will join the leadership team of TIE.
“We are very excited to partner with Bobby Haynes and the entire team at TIE, and we look forward to working together to build on the company’s historical success,” said Bob Calton, Managing Partner at Summit Park.
Summit Park makes investments in lower middle market companies across a range of industries that have revenues between $10 million and $100 million or EBITDAs between $4 million and $10 million. Sectors of specific interest include business and outsourced services; commercial security; environmental services; laboratory products and equipment; transportation & logistics; and test & measurement. The firm is based in Charlotte, NC (www.summitparkllc.com).
Limited partners participating in the initial closing of Summit Park II, LP include J.P. Morgan Asset Management and Private Advisors.
Babson Capital Finance (www.BabsonCapital.com) provided the debt financing for the acquisition of Tennessee Industrial Electronics. The company was represented by CCG Advisors (www.ccgadv.com), an Atlanta-based investment banking firm.
2014 PEPD • Private Equity’s Leading News Magazine • 9-11-14