Summit Park has sold its portfolio company, Tennessee Industrial Electronics, a provider of refurbished parts and repair services, to Diploma, PLC for approximately $93 million.
Tennessee Industrial Electronics (TIE) was acquired by Summit Park through its second fund in September 2014 and specializes in computer numerical control (CNC) systems and robotics.
TIE was founded in 1992 and initially focused on the refurbishment of servo and spindle motors and drives, controls, monitors, power supplies, robot parts, and CNC accessories with a specialization in FANUC systems.
Through a series of acquisitions during Summit Park’s ownership – the Parker Group, Master Robotics, and Robots.com – the company expanded its geographic footprint and capabilities into industrial automation parts, repair, and robotics. Today, according to Summit Park, TIE is one of the largest providers of aftermarket support for CNC automation in North America. The company, led by CEO Tony Wisniewski, is headquartered southeast of Nashville in La Vergne, Tennessee, with two additional facilities in Michigan.
“TIE’s significant growth and success are the result of the hard work of the entire TIE team, led by Tony Wisniewski,” said Bob Calton, co-managing partner at Summit Park. “They thoughtfully executed a value creation plan to broaden the company’s capabilities, expand into new end markets, and grow strategically through M&A, establishing TIE as a market-leading provider. We enjoyed a strong partnership with the TIE team, and we look forward to following their continued success as a part of Diploma.”
“I am proud of the team we have built, and the investments we have made in our business to build scale as a leader in aftermarket support for robotics and CNC automation. Summit Park has been a terrific partner for TIE and their guidance was invaluable to accelerating the company’s growth trajectory during their ownership,” said Mr. Wisniewski. “We are truly excited for the opportunity to build on this success with Diploma and believe that they are a perfect long-term cultural fit for the employees of TIE.”
Charlotte-headquartered Summit Park invests in lower middle-market companies that have operations primarily based in the Eastern half of the United States and have revenues between $20 million and $150 million, and EBITDA between $4 million and $15 million. Sectors of interest include business and consumer services, light manufacturing, and value-added distribution. Summit Park was founded in 2006 and has made over 40 investments in the lower middle market totaling more than $2 billion in enterprise value. The sale of TIE is Summit Park’s sixth exit from its second fund, Summit Park II LP, which closed in May 2015 with $118 million in capital.
Diploma (LSE:DPLM), the buyer of TIE, is a provider of engineering services and products that specializes in control valves, instruments and sensors, and valve actuators used in the oil and gas, power generation, water treatment, food processing and pharmaceutical sectors. Over the past four years, Diploma has invested £820 million in 27 acquisitions including the buys in 2022 of UK-based companies R&G Fluid Power, Hydraproducts, AMG Sealing, and Silicon Solutions; Australia-based Anti-Corrosion Technologies (ACT); US-based LJR Electronics; and Ireland-based Accuscience. London-headquartered Diploma was founded in 1931 and has annual revenues of just over £1 billion.
Lincoln International was the financial advisor to TIE and Summit Park on this transaction.
© 2023 Private Equity Professional | March 21, 2023
