Gen Cap Exits Alpha Technics

Gen Cap America has sold Alpha Technics, a maker of sensor assemblies and precision thermometry instruments, to publicly- traded TE Connectivity. Gen Cap acquired Alpha Technics in April 2011.

Alpha Technics products are used in the in medical, biotech, life sciences and industrial sectors and include temperature sensors and sensor assemblies for patient monitoring and medical equipment; temperature verification kits used to check that equipment and manufacturing operations are running at temperatures that meet regulatory compliance; and catheters, skin sensors, esophageal, myocardial, and other special devices.

Alpha Technics, led by CEO Dan O’Brien and President Lisa Ryan, is headquartered in Oceanside, CA with manufacturing facilities in Tecate, Mexico and Xiamen, China. The company had revenues in 2018 of approximately $20 million (www.alphatechnics.com).

“Alpha Technics has been an expert designer and manufacturer of temperature sensing and measurement products since 1979,” said Mr. O’Brien. “By partnering with Gen Cap over the last eight years, we were able to open a medical device assembly and packaging clean room as well as establish calibration labs in Mexico and China. Those investments amongst others laid the groundwork for us to expand our capabilities and continue our growth.”

“We thoroughly enjoyed supporting the Alpha Technics team in growing the business,” said Chris Godwin, a managing director at Gen Cap America. “This has been an excellent investment for Gen Cap America, and we are confident that Alpha Technics will continue to thrive going forward.”

Gen Cap America invests in companies with revenues between $5 million and $100 million that are active in the manufacturing, distribution or service sectors. The firm is currently investing through Southwest Fund VII, a $250 million fund which had a final close at its hard cap in January 2017. Gen Cap was founded in 1985 and is based in Nashville (www.gencapamerica.com).

“Alpha Technics has been an excellent example of our firm’s long history of teaming with existing management in lower middle market companies,” said Barney Byrd, president of Gen Cap America.

“With Gen Cap’s support, we have been able to expand the company’s product lines, which range from sub-assemblies to full medical devices, and add key facility certifications. This brought value to both Alpha Technics as well as our customers and allowed us to secure our next partnership to continue our company’s legacy of providing quality products,” said Lisa Ryan, president of Alpha Technics.

TE Connectivity (NYSE: TEL), the buyer of Alpha Technics, manufactures connectivity and sensor products for harsh environments in a variety of industries including automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy. The company (formerly Tyco Electronics) is headquartered in Schaffhausen, Switzerland with an additional regional headquarters facility near Philadelphia in Berwyn, PA (www.te.com).

“The acquisition of Alpha Technics is part of our well-established strategy to expand our leadership position in sensor applications,” said John Mitchell, senior vice president and general manager of TE’s sensors business. “This transaction further establishes TE as a sensor technology leader for the medical market.”

© 2019 Private Equity Professional | May 7, 2019

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