Archives for January 29, 2021

AEI Forms New UAV Platform

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AE Industrial Partners (AEI) has acquired UAV Factory as a new platform investment in the unmanned aerial vehicle (UAV) and intelligence, surveillance, reconnaissance (ISR) technology markets.

UAV Factory designs and manufactures fixed-wing UAVs, UAV subsystems, electro-optical and infra-red ISR camera payloads, and accessories for the unmanned and manned aircraft industry. UAV Factory was founded in 2009 and is based in Riga, Latvia and has a US location in Bend, Oregon.

“The UAV market is growing exponentially, and with the financial and operational support of AEI, UAV Factory is poised for increased growth and market share,” said Konstantin Popiks, a co-founder of UAV Factory who will remain with the company in a senior leadership role in partnership with AEI.

“UAV Factory is at the forefront of the burgeoning global UAV market,” said Kirk Konert, a partner at AEI. “Its first-mover advantage and unique vertical integration of its proprietary technology solutions well-positions the company to expand its share of this high growth market.”

Boca Raton-based AEI invests in the aerospace and defense, power generation, and specialty industrial sectors with a specific focus on technical manufacturing; distribution and supply chain management; maintenance, repair, and overhaul; and industrial service-based businesses. Typical company targets will have from $50 million to $500 million of revenue. In July 2018, the firm held a final hard-cap closing of its second private equity fund, AE Industrial Partners Fund II LP, with $1.36 billion in commitments.

“UAV Factory’s engineering and technical capabilities, combined with its proven and growing set of technology solutions, are truly differentiated in the market,” said Jeffrey Hart, a principal at AEI. “We are excited to partner with the company’s talented team and are confident that our collective strategic vision for an unmanned technology platform will yield powerful results in this fast-growing market.”

Houlihan Lokey was the financial advisor to UAV Factory and PricewaterhouseCoopers advised AEI.

© 2021 Private Equity Professional | January 29, 2021

Automotive Pro Joins Falls River

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Falls River Group has added Tribby Warfield to its team as a new strategic advisor.

Prior to joining Falls River, Ms. Warfield held executive positions in both private equity and publicly traded companies in the automotive aftermarket and industrial sectors.

In her new position with Falls River, Ms. Warfield will be active with both business development and advising the firm’s clients on operating performance improvement and maximizing enterprise values.

Most recently, Ms. Warfield was the chairman and CEO of APC Automotive Technologies, a Colorado-headquartered supplier of automotive, light truck, and heavy-duty replacement parts.

APC was formed in 2017 by Harvest Partners and Audax Private Equity to combine AP Emissions Technologies and Centric Parts. In July 2020, APC completed a restructuring of its debt, under a Chapter 11 plan of reorganization, in agreement with its lenders and equity holders. In September 2020, APC sold its AP Emissions business unit to APACE Holding Company, formed by Vange Proimos, a past owner and CEO of AP Emissions. In December 2020, First Brands Group, a Michigan-headquartered automotive aftermarket parts supplier, acquired CentricParts.

Ms. Warfield joined APC in 2019 and led the company through its financial restructuring and the sale of the business to APACE and First Brands. From 2016 to 2019, she was the Senior Vice President of Business Development and Strategy for Nitta Corp., a maker of industrial belting, hoses, tubing and wiper products; and she was a Senior Vice President and General Manager of industrial products distributors Kaman Fluid Power and Kaman Automation.

From 1998 to 2013, she was a senior executive at Gates Corporation (NYSE: GTES) and from 2009 to 2013 led the company’s North America Commercial and Power Transmission divisions. In 2014, Blackstone acquired Gates Corporation from Onex Corp. and Canada Pension Plan Investment Board for $5.4 billion. Blackstone completed an initial public offering for Gates in 2018.

Ms. Warfield graduated with a BA in Business Administration from National University in San Diego and she has dual citizenship in the United States and the United Kingdom.

Falls River is a mergers and acquisitions advisory firm based in Naples, Florida. The firm’s sell-side clients typically have enterprise values from $25 million to $500 million and include strategic acquirers, family offices, and private equity sponsors.

© 2021 Private Equity Professional | January 29, 2021

Argosy Buys Bionix

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Argosy Private Equity has closed the first acquisition for its sixth lower middle market fund with the buy of Bionix.

Bionix is a developer and seller of medical devices and products used in ear, nasal, and wound care applications. The company, led by CEO Chris Becker, was co-founded in 1984 by Drew Milligan, Ph.D. and Jim Huttner, M.D., Ph.D., and is headquartered in Toledo, Ohio.

Argosy and Bionix are now executing new growth strategies which include further penetration of existing sales channels, new product development, and add-on acquisition opportunities.

“We have spent a great deal of time and energy assessing our products, people and strengths. Working with Argosy, we are positioned to realize our corporate goals as we have outlined them in our strategic growth initiatives,” said Mr. Becker.

“We are thrilled to be partnering with the Bionix team to implement growth strategies for Bionix, including the introduction of a variety of new products that Bionix has ready to launch,” said Kirk Griswold, a founding partner at Argosy.

“Our new partnership with Argosy will allow Bionix to take our innovation process to the next level.  I’m looking forward to the opportunity of bringing our aggressive pipeline of new products to life and sharing them with our customers around the world” said Dr. Huttner.

Argosy Private Equity invests from $5 million to $25 million in lower middle-market companies that have revenues up to $100 million, EBITDA up to $10 million, and EBITDA margins of 10% or greater. Sectors of interest include niche manufacturing and business-to-business services companies. Argosy Private Equity is a division of Argosy Capital, an investment adviser with $1.5 billion of assets under management. The firm was founded in 1990 and is headquartered near Philadelphia in Wayne, Pennsylvania.

© 2021 Private Equity Professional | January 29, 2021