Trident Maritime Systems, a portfolio company of J.F. Lehman, has acquired the assets of Custom Alloy Corporation (CAC).
CAC is a provider of specialized alloyed forgings, fittings, and pipe used in demanding conditions such as high-pressure lines, corrosive environments, heat severity, and nuclear applications. The company is a provider to the U.S. Navy on many of its key programs including nuclear submarines and aircraft carriers. CAC is headquartered in High Bridge, New Jersey.
Trident was the prevailing bidder in a Section 363 bankruptcy auction for the assets of CAC. The company filed for chapter 11 protection in the District of New Jersey in October 2022.
Trident Maritime Systems was formed by J.F. Lehman in 2012 through the combination of US Joiner (acquired in June 2011) and IMECO (acquired in December 2012). The company’s services include the design, engineering and installation of nearly all aspects of a ship’s interior as well as various systems including HVAC, cargo handling, electric steering, propulsion, communication, navigation and fire suppression.
Most of the services provided by Trident are for new ship construction, retrofit and repair activities for the cruise, military, offshore oil and gas, and commercial ship markets. The company, led by CEO Tom Eccles, has more than 1,300 employees in 19 countries – the company has locations positioned near major naval and commercial shipbuilders across the U.S. and internationally – and is headquartered in Arlington, Virginia.
“We are very excited to welcome the Custom Alloy Corporation employees into the Trident family,” said Mr. Eccles. “The success that the CAC team has achieved in penetrating the U.S. Navy market is a testament to the quality of their products and their deep technical expertise. We look forward to integrating CAC’s capabilities and services into the Trident platform and delivering even more value to our customers.”
The buy of CAC follows earlier add-on acquisitions by Trident of Newsystem, an Italy-based provider of outfitting systems to the cruise ship new construction market (June 2018); Callenberg Technology Group, a Sweden-based designer and assembler of HVAC, electrical, and insulation systems for commercial and government vessels (October 2016); and the Heavy Equipment Group of Oldenburg Group, a Wisconsin-based manufacturer of cranes, door and structural components used in the maritime and mining industries (August 2016).
“The acquisition of CAC expands our presence on key U.S. Navy nuclear vessel programs, a critical element of our growth strategy,” said Alex Harman, the chairman of Trident and a partner at J.F. Lehman. “Trident’s growing scale and breadth of offerings allow us to more holistically partner with our shipbuilding customers to efficiently deliver the solutions required by them and the U.S. Navy.”
J.F. Lehman is a middle-market private equity firm focused primarily on the maritime, defense and aerospace sectors. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. J.F. Lehman is headquartered in New York City with an additional office in Washington, DC.
SSG Capital Advisors was the financial advisor to CAC on this transaction.
© 2023 Private Equity Professional | June 22, 2023
