Vance Street Capital Exits Secure Technology
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Vance Street Capital Exits Secure Technology

secure tech nf1Vance Street Capital has entered into an agreement to sell Secure Technology Company to Benchmark Electronics for approximately $230 million in cash. Vance Street acquired a majority interest in Secure in October 2009.

secure tech nf2Secure Technology is a provider of electronics, sub-systems, and components used in the industrial, aerospace and defense markets. The company’s products include rugged computer systems, RF components; electronic manufacturing services, and digital audio/video instrumentation products.  Secure’s products are often used in mission critical applications in which they are exposed to severe operating environments and are integrated into aircraft, surface-to-air missiles, torpedoes, locomotives, subway cars, tactical ground vehicles or are carried by soldiers and other combat personnel.  The company is headquartered in Santa Ana, CA (www.securetechnologycompany.com).

During its term of ownership, Vance Street achieved significant growth in sales and profitability as a result of an expansion of the company’s products and customer base in both the defense and non-defense end markets. Vance Street also completed three add-on acquisitions with the buys of Tactical Micro in January 2014; Lark Engineering in September 2013; and Smart Electronics & Assembly in May 2013.

Richard Crowell nf1“Following our acquisition of Secure in 2009, we took several steps to grow the business. These initiatives included the implementation of continuous improvement processes, the creation of an advanced technology division to capitalize on the company’s strong engineering capabilities, and the addition of new products, technologies and customers via strategic acquisitions,” said Richard Crowell, Managing Partner at Vance Street Capital. “Secure is an impressive organization and the success we have had in partnership with CEO Allen Ronk and his management team has been gratifying.”

Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include general industrial, aerospace & defense, and medical components and devices.  The sale of Secure is the fourth from Vance Street Capital’s current fund, Vance Street Capital II LP, which closed in 2008. The firm is based in Los Angeles (www.vancestreetcapital.com).

“Secure has benefitted significantly over the last six years from the operational support and strategic guidance Vance Street Capital provided,” said Mr. Ronk. “Since 2009 our team of engineers has grown from less than ten to over 55 and our program base has grown from less than 30 to over 135. We remain focused on the many opportunities we see to meet and exceed our customers’ needs and continue to drive growth.”

Benchmark Electronics (NYSE: BHE), the buyer of Secure, is an electronics manufacturing services company that provides product development and contract manufacturing services to original equipment manufacturing companies. Benchmark is headquartered in the Houston suburb of Angleton (www.bench.com).

Harris Williams & Co. is the financial advisor to Secure and O’Melveny & Myers is acting as its legal counsel.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-28-15

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