Channel Technologies Group, a portfolio company of Blue Wolf Capital Partners, has acquired H.C. Materials from Dr. Pengdi Han. As part of the acquisition, Dr. Han will become an equity owner of Channel Technologies, as well as an active board member.
“We look forward to a long and fruitful partnership with Dr. Han as we continue to support Channel Technologies’ growth, including diversifying its product offering through strategically important acquisitions,” said Haranjeet Narulla, Principal at Blue Wolf.
H.C. Materials is a developer and manufacture of giant-piezoelectric single crystals, specializing in lead magnesium niobate-lead titanate (PMN-PT) based piezocrystals and finished crystal elements. The company also supplies crystal products for acoustic transduction devices in a variety of applications such as medical ultrasound imaging, ocean mining, sensors, transducers and sonar systems. H.C. Materials was founded in 1995 and has its headquarters and production facilities in Bolingbrook, IL (near Chicago) (www.hcmat.com).
Channel Technologies Group (CTG) is a manufacturer of piezoelectric ceramics, transducers and sonar and navigation systems used in the defense, medical and energy industries. The company was acquired by Blue Wolf Capital in December 2011. CTG was founded in1959 and is based in Santa Barbara (www.channeltechgroup.com).
“This is an important strategic step for CTG as we continue to grow in mission critical segments of the defense, energy and medical technology sectors. The addition of H.C. Materials’ single-crystal technology strengthens our advanced materials segment, as well as our ability to deliver the high-quality, state-of-the-art technological applications demanded by our customers,” said Ralph Phillips, CEO of CTG.
Blue Wolf invests in companies in which effective management of relationships with complex constituencies, such as government and labor, can change organizations and create value. The firm’s investment criteria are minimum revenues of $25 million; minimum transaction size of $20 million; and a minimum investment size of $10 million. The firm focuses its efforts on companies based in the United States and Canada. Blue Wolf has $460 million of capital under management and is headquartered in New York (www.blue-wolf.com).
Houlihan Lokey served as financial advisor to H.C. Materials in this transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-14-13