Levine Leichtman Capital Partners (LLCP) has acquired NSL Analytical Services, a provider of material testing services, from May River Capital.
NSL provides materials testing services to more than 1,700 companies operating in a range of highly regulated and technologically advanced sectors including additive manufacturing (3D printing), aerospace, automotive, electronics, general manufacturing, medical devices, nuclear power generation, and nutraceuticals. The company’s testing capabilities include metals, alloys, plastics, composites, and ceramic materials in powdered, solid, or liquid form.
NSL operates from a 31,000 square foot facility in the Cleveland suburb of Warrensville Heights which houses its administrative offices, customer service department and polymer, ophthalmic, elemental chemical analysis and composite materials testing laboratory. NSL has an additional 11,500 square foot facility, also in Warrensville Heights, which houses the company’s mechanical and metallurgical testing and machining operations. NSL, led by CEO Ron Wesel, was founded in 1945 and acquired by May River in January 2020.
“Thanks to our loyal customers, our wonderful team, and our partners at May River, NSL today is poised to continue its legacy as a trusted provider of advanced materials testing services,” said Mr. Wesel. “Our new partnership with LLCP will further guide and fuel NSL’s growth in support of the critical quality assurance testing our team delivers to clients world-wide.”
“We are thrilled to partner with NSL, a leader in the materials testing and analysis sector,” said Matthew Frankel, a managing partner at LLCP. “NSL has established itself as a trusted partner for a loyal client base across numerous high-performance industries. We are excited to work with the NSL team to broaden the company’s testing capabilities and geographic footprint through both organic initiatives and strategic acquisitions.”
The acquisition of NSL is the sixth platform investment for LLCP’s third lower middle market fund, and continues the firm’s interest in the testing, inspection, certification and compliance (TICC) sector. Earlier investments include FlexXray, a provider of X-Ray inspection services to the food industry (2017 to 2021); Technical Safety Services, a provider of TICC services to the pharmaceutical, biotechnology, and healthcare sectors (acquired in 2022); Trinity Consultants, a provider of air and water compliance testing services (2015 to 2021); and Encore Fire Protection, a provider of testing and inspection, maintenance and repair services for fire protection systems (acquired in 2021).
“Our new partnership with LLCP will further guide and fuel NSL’s growth in support of the critical quality assurance testing our team delivers to clients worldwide,” added Mr. Wesel. “In an ever-increasing technology-driven world, NSL’s material testing capabilities provide the confidence and security demanded by traditional and evolving production methods such as additive manufacturing.”
LLCP invests in US and Europe-based middle-market companies across numerous industries including franchising, business services, education and training, engineered products and manufacturing, healthcare, and light manufacturing. Since its founding in 1984 by Arthur Levine and Lauren Leichtman, LLCP has managed $14.4 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. LLCP currently has $10.2 billion of assets under management with offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, The Hague, and Frankfurt.
Chicago-based May River invests from $20 million to $90 million of equity in companies with EBITDA of $3 million to $15 million and enterprise values of $20 million to $150 million. Sectors of interest include advanced manufacturing, engineered products and instrumentation, specialized industrial services, and value‐added industrial distribution services. May River held a hard cap close of its third fund, May River Capital Fund III LP, with $500 million in limited partner commitments in July 2023.
KPMG Corporate Finance was the financial advisor to May River and NSL on this transaction.
© 2024 Private Equity Professional | July 2, 2024
