L Squared Capital Partners has formed BTX Precision to continue its strategy to consolidate the fragmented North American precision components sector.
BTX is comprised ERA Industries (acquired in June 2023), Gen El Mec Associates (acquired in August 2023), and I3D Manufacturing (acquired in October 2023).
Illinois-based ERA is a contract manufacturer specializing in precision machining and assemblies that are used in the aerospace, military, medical, semiconductor, and transportation industries.
Oregon-based I3D is a provider of metal additive (3D printing) services to companies operating in the defense and space sectors. The company, using laser sintering technologies, specializes in aluminum, copper, titanium, Inconel, Haynes, Monel K, and stainless steel.
Connecticut-based Gen El Mec Associates is a provider of CNC milling and turning services, and electrical discharge machining (EDM) services to companies operating in the aerospace, medical, and semi-conductor industries.
BTX is led by CEO Rick McIntyre and now, in aggregate, operates four facilities with more than 175,000 square feet of production space. The leadership teams at each acquired entity within BTX have remained in place as both executives and ongoing owners of BTX in partnership with L Squared.
“We’re excited to continue to build the BTX Precision platform via an aggressive acquisition campaign,” said Randall Hunt, a partner at L Squared. “The assets we’ve acquired to date are great businesses in their respective domains with deep customer relationships built over decades via an unwavering commitment to quality and service. Our capital base and execution of our M&A strategy will enable BTX to continue to assemble a growing portfolio of complementary capabilities and enhance the value proposition to all customers across the BTX portfolio.”
L Squared invests from $50 million to $125 million of equity in North America-based companies that have revenues of $20 million to $125 million and EBITDA of $5 million to $30 million. Sectors of interest include tech-enabled services and software, education technology, and industrial technology and services. In November 2023, L Squared held the final closing of its fourth fund with $840 million of capital. The firm’s earlier fund closed in September 2020 with $505 million of capital.
Newport Beach, California-based L Squared is led by Robert Healy, Jeff Farrero, Sean Barrette, Randall Hunt and Adam Kimura, all of whom worked together at Chicago Growth Partners prior to founding L Squared in July 2014.
© 2024 Private Equity Professional | February 21, 2024
