Data Device Corporation, a portfolio company of Behrman Capital, has entered into an agreement to acquire the microelectronics business of publicly-traded Maxwell Technologies for $21 million. The agreement includes all assets and certain liabilities related to the microelectronics product line. The transaction is expected to close by the end of April 2016.
Maxwell’s microelectronics business – with 2015 revenues of $11.1 million – is a developer and manufacturer of microelectronics used in satellites and spacecraft. Products include radiation-tolerant and radiation-shielded products, including semiconductors and single-board computers. Many of the businesses’ products use proprietary packaging, shielding technology, and designs that enable them to withstand the effects of radiation and to perform reliably in space (www.maxwell.com)
Data Device Corporation (DDC) is a designer and manufacturer of microelectronic components used in data conversion and networking products (cards, software, and fiber channel switches) for use in the defense, space, and aerospace industries. The company is led by Vincent Buffa, its president and CEO. DDC is headquartered in Bohemia, NY (www.ddc-web.com).
DDC was acquired in April 2003 as part of Behrman’s acquisition of ILC Industries. At that time, ILC Industries was comprised of two operating subsidiaries, DDC and ILC Dover (a manufacturer of soft good materials used in space, military and commercial applications). Behrman has completed six dividend recapitalizations of DDC/ILC since April 2003 and spun off ILC Dover to shareholders January 2011.
“We are very pleased that DDC will acquire Maxwell’s microelectronics business, which is highly complementary to DDC’s existing space solutions capabilities,” said Grant Behrman, Managing Partner of Behrman Capital. “DDC has made exceptional progress in recent years through strategic acquisitions and other initiatives. We look forward to working with Vince Buffa and his management team in the coming years to continue to build on DDC’s leading position in its markets.”
Behrman Capital invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The firm’s investments are primarily focused in four industries: health care, specialty manufacturing, business-to-business outsourcing and defense. The firm has raised five funds with a combined capital base in excess of $3 billion. Behrman Capital was founded in 1991 by Grant G. and Daryl G. Behrman and has offices in New York and San Francisco (www.behrmancap.com).
Maxwell Technologies (NASDAQ:MXWL) is a manufacturer of energy storage and power delivery products. The company’s products are used in automotive, heavy transportation, renewable energy, backup power, wireless communications and industrial and consumer electronics applications. The microelectronics business makes radiation-hardened microelectronic components and systems for satellites and spacecraft. Maxwell Technologies was founded in 1965 and is headquartered in San Diego (www.maxwell.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 4-14-16