Windjammer Capital Investors has acquired Hermetic Solutions Group from Shoreview Industries.
Hermetic Solutions Group (HSG) is a provider of hermetic (airtight) packaging and components that are designed to ensure that critical electronic systems function reliably in demanding environments where it is essential to control for factors such as weight, space, vibration, temperature, moisture and off-gassing.
The company’s products – sold under the PA&E, Hi-Rel, Litron and Sinclair brands – are used in defense platforms, as well as niche applications in medical devices, optical networking and industrial products. HSG is led by CEO Bill Hubbard and is headquartered near New York in Tinton Falls, NJ (www.hermeticsolutions.com) (www.pacaero.com) (www.hirelgroup.com) (www.litron.com) (www.sinclairmfg.com).
Shoreview Industries first invested in HSG through its August 2015 buy of Wenatchee, WA-based Pacific Aerospace & Electronics (PA&E), a maker of hermetic electronic connectors and enclosures capable of performing in extreme environments, from Esterline Technologies. In June 2016, it acquired Agawam, MA-based Litron, a provider of microwave packages, hermetic sealing and custom laser welding systems to the aerospace, industrial and medical end-markets. Then, in December 2016, Shoreview acquired Essex, CT-based Hi-Rel, a provider of hermetic packaging components (lids, absorbers, preforms, thermal spreaders and ring frames) that are used in many of the hermetic packages and enclosures that PA&E and Litron manufacture. At this time, Shoreview combined the operations of PA&E, Litron, and Hi-Rel under Hermetic Solutions Group (HSG). In June 2018, HSG purchased Norton, MA-based Sinclair Manufacturing, a maker of hermetic packaging for the aerospace & defense, medical, telecom and industrial end markets.
The buy of HSG from Shoreview is the first investment for Windjammer’s $870 million Senior Equity Fund V LP which closed at its hard cap in December 2018.
“This acquisition gets Fund V off to a strong start,” said Greg Bondick, a managing principal at Windjammer. “HSG is uniquely positioned in an attractive industry niche with strong secular growth drivers and is the logical platform for the continued consolidation of an otherwise fragmented market.”
Windjammer invests equity and subordinated debt as a control investor in middle market businesses located in the US or Canada that have EBITDA from $10 million to $50 million. Sectors of interest include niche manufacturing, business services and value-added distribution. The firm’s investment size will range from $50 million to $200 million per transaction. Windjammer was founded in 1990 and is based in Newport Beach, CA and Waltham, MA (www.windjammercapital.com).
“The breadth of HSG’s offering, its application engineering and materials science know-how, combined with its specialized manufacturing and process technologies, represent a truly differentiated value proposition, which is reflected in its long-tenured customer relationships,” said Craig Majernik, a managing director at Windjammer. “We saw in HSG the opportunity to back a strong management team, support their ongoing initiatives to drive operational excellence and capacity expansion, and underwrite an acquisition strategy to further build out HSG’s platform of leading brands and product lines.”
ShoreView, the seller of HSG, makes control and minority investments in US-based middle market companies that have revenues from $20 million to $300 million and operating profits from $5 million to $40 million. Sectors of interest include manufacturing, distribution and services. The firm currently has $900 million of capital under management and is based in Minneapolis (www.shoreviewindustries.com).
© 2019 Private Equity Professional | February 28, 2019