Arsenal Acquires Fralock

Arsenal Capital Partners has acquired Fralock, a designer and manufacturer of components and subassemblies that are used in the semiconductor equipment, life science, aerospace, and satellite industries.

Fralock’s capabilities include design, rapid prototyping, manufacturing, adhesiveless lamination, laser cutting, CNC, rotary die cutting, slitting, lamination, and automated placement services. Fralock is a 3M Preferred Converter and a licensee of Cirlex specialty polyimide films from DuPont.

Fralock was founded in 1967 and is led by CEO Marcelo Norona. The company has more than 170 employees and operates a 60,000 sq. ft. manufacturing facility (currently under expansion) and headquarters near Los Angeles in Valencia, CA (www.fralock.com).

“The investment from Arsenal along with its depth of resources and operating expertise will enable Fralock to accelerate the expansion of its product portfolio and services,” said Mr. Norona.

Scott Tucker, the company’s owner and son of founder Noel Tucker, will remain as a shareholder in Fralock in partnership with Arsenal.  “Arsenal is uniquely capable of supporting the company’s strategy as a premier solutions provider, and this partnership will present significant benefit to our customers, employees, suppliers, and other partners,” said Mr. Tucker.

“Arsenal is excited to invest in a company with a longstanding track record of providing innovative solutions and engineering services to its global customer base.  Fralock is well‐positioned to capitalize on the growing demand of its customers and its position as a preferred supplier,” said Sal Gagliardo, an Industry and Operations Partner of Arsenal.

Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value.  Industries of specific interest include specialty industrials and healthcare companies. The firm was founded in 2000 and has offices in New York and Shanghai (www.arsenalcapital.com).

“Arsenal is delighted to partner with Scott Tucker, Marcelo Norona, and the management team in continuing to grow Fralock.  We see substantial growth opportunities to maximize Fralock’s technologies and reputation, and we plan to help the company build its capabilities,” said Roy Seroussi, an Investment Partner in Arsenal’s Specialty Industrials practice.

TwinBrook Capital Partners was the joint lead arranger and administrative agent for $87.5 million of financing to support the buy of Fralock. TwinBrook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million with hold sizes across the Twin Brook platform ranging from $25 million up to $100 million (www.twincp.com).

Investment bank FocalPoint Partners (www.focalpointllc.com) was the financial advisor to Fralock.  Houlihan Lokey (www.hl.com) was the financial advisor to Arsenal.

© 2018 Private Equity Professional | April 18, 2018