Arcline Continues Build of Specialty Electronics Platform

Arcline Investment Management has acquired Ohmega Technologies, a maker of thin-film electronic resistive materials.

Ohmega’s thin film products, sold under the OhmegaPly brand, are made of a nickel-phosphorous alloy (from 0.05 to 1.00 microns) that is electrodeposited on a copper-conducting layer of foil (from 17 microns to 35 microns) and are used as part of printed and etched circuitry on circuit boards.

Since the company’s founding by CEO Alan Leve in 1983, the company’s products have been used within billions of printed circuit boards in a wide range of applications for consumer electronics, cars, medical devices, satellites, space probes, missiles and fighter aircraft. OEM customers of Ohmega have included Raytheon, IBM, Apple, Canon, Boeing, TRW, Nokia, and Northrop Grumman. Ohmega is headquartered near Los Angeles in Culver City, California.

“The addition of Ohmega perfectly aligns with our specialty electronic components platform growth strategy to assemble a portfolio of companies with world-class products and customer service,” said Arcline in a released statement. “We are excited to work with this talented team to accelerate Ohmega’s growth while maintaining the company’s unique culture and customer-first mindset.”

In November 2020, Arcline acquired Evans Capacitor, a Rhode Island-based designer and manufacturer of high-density hybrid capacitors made from tantalum and ruthenium (rare and highly corrosion-resistant metals). Evans’ hybrid capacitors are used to store electrical energy and are used in aerospace, defense, and energy applications including radar, laser, electronic warfare.

The buy of Evans was the first buy in a strategy initiated by Arcline to build a specialty electronic components platform. At the close of the Evans buy, Kevin Perhamus was named as the CEO of the new platform. From July 2010 to August 2020, Mr. Perhamus was the CEO of Winchester Interconnect – a maker of radio frequency, microwave, cable and fiber optic connectors – which was acquired by publicly traded Aptiv in October 2018 from private equity firm Snow Phipps.

“We are very pleased with the acquisition of Ohmega by Arcline,” said Bruce Mahler, Ohmega’s vice president and general manager. “We’re excited by the prospect of working with Arcline and Kevin and know that Arcline’s commitment to investing in Ohmega will serve our customers well for many years to come.”

Arcline makes control investments in companies that have from $10 million to $100 million of EBITDA and enterprise values of up to $1 billion. Sectors of interest include industrial technology, life sciences, aerospace and defense, personal care, medical products, and specialty chemicals. The firm closed its first fund, Arcline Capital Partners LP, with $1.5 billion of committed capital in March 2019. Arcline was founded in September 2018 and has offices in San Francisco and New York.

Houlihan Lokey was the financial advisor to Ohmega on this transaction and Lincoln International advised Arcline.

© 2021 Private Equity Professional | January 8, 2021

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