First Atlantic Capital has sold its portfolio company TestEquity to LKCM Headwater Investments. First Atlantic acquired TestEquity in December 2012 from Evercore Capital Partners.
TestEquity is a distributor of electronic test and measurement equipment as well as laboratory and production supplies. In addition to offering new equipment for sale, rental, or lease, TestEquity also provides pre-owned equipment that has been restored, tested and calibrated, and backed with a one-year warranty. The company is an authorized stocking distributor for Keysight Technologies (formerly Agilent Technologies’ Electronic Measurement Group), Tektronix, and many other manufacturers. The company was founded in 1971 and is headquartered near Los Angeles in Moorpark, CA (www.testequity.com).
Under First Atlantic’s ownership, TestEquity completed two add-on acquisitions: In January 2017 the company acquired Massachusetts-based JENSEN Tools + Supply, a subsidiary of Stanley Black & Decker, and a supplier of MRO tools and supplies used by electronics manufacturers, field service technicians, and repair professionals; and in August 2014, TestEquity acquired Texas-based EWD Solutions, a distributor of solder stations and solder, hand tools, work benches, task lighting, and microscopes.
“Since acquiring TestEquity in 2012, we have worked closely with management to enhance the company’s strategy and expand the business through acquisitions. We believe TestEquity has a solid strategy with a strong management team and is well positioned for the future,” said Roberto Buaron, Chairman and CEO of First Atlantic.
First Atlantic invests in middle-market companies that are active in the plastics and packaging, food and beverage, consumer and industrial products, and business services sectors. Since its inception in 1989, First Atlantic has acquired 70 companies and consolidated them into 22 major platforms. The firm is based in New York (www.firstatlanticcapital.com).
LKCM Headwater invests from $5 million to $40 million of equity in companies that have revenues of $50 million to $250 million. Sectors of interest include industrial distribution & services, manufacturing, energy, financial services, and healthcare. The firm has offices in Ft. Worth and Houston (www.lkcmheadwater.com).
Robert W. Baird was the financial advisor to First Atlantic on this transaction.
© 2017 Private Equity Professional | May 11, 2017
