contract mfg.

Swander Pace Acquires Captek Softgel

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Swander Pace Capital has completed the buy of Captek Softgel International from Prairie Capital and Skyline Global Partners.

Captek Softgel is a contract manufacturer and distributor of softgels for vitamin, mineral and supplement (VMS) brands across North American and international markets. The company currently services more than 200 brands in 20 countries.

Captek Softgel has encapsulation lines that operate 24/5 and are capable of producing over three billion softgels annually. The company’s facility has approximately 85,000 square feet of production, analytical laboratory, pilot laboratory, and warehousing space and is FDA registered, audited and compliant; and GMP (Good Manufacturing Practice) certified. Captek is led by its CEO David Wood and is headquartered south of Los Angeles in Cerritos, CA (www.capteksoftgel.com).

“I am excited to announce this transaction and partnership with Swander Pace Capital,” said Mr. Wood. “The firm has an incredible track record growing companies in the consumer products industry, and I look forward to partnering with them to enhance our market leadership as one of the top softgel companies in the world.”

“Captek has established itself as a world-class manufacturer and marketer of specialized softgel products for domestic and international VMS brands,” said Corby Reese, a managing director at Swander Pace Capital. “We are impressed with Captek’s management team and look forward to working with them to build upon Captek’s strong positioning and success.”

Swander Pace invests in middle-market consumer products companies including branded and non-branded manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $400 million in revenues.  The firm has raised over $1.3 billion of equity capital through five private equity funds and has led investments in more than 40 consumer products companies.  Swander Pace was founded in 1996 and has offices in San Francisco; Bedminster, NJ; and near Toronto in Oakville, ON (www.spcap.com).

“Captek is poised for significant growth with its high quality manufacturing, formulation expertise, and unparalleled customer service,” added Mark Poff, a managing director at Swander Pace Capital. “While the VMS category has strong growth, softgels are growing even faster due to their multiple end-use applications, high potency, and ease of swallowing, and we see Captek on the leading edge of that opportunity.”

Kirkland & Ellis (www.kirkland.com) served as the legal advisor to Swander Pace Capital on the acquisition.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-14-15

Vance Street Capital Exits Secure Technology

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Vance Street Capital has entered into an agreement to sell Secure Technology Company to Benchmark Electronics for approximately $230 million in cash. Vance Street acquired a majority interest in Secure in October 2009.

Secure Technology is a provider of electronics, sub-systems, and components used in the industrial, aerospace and defense markets. The company’s products include rugged computer systems, RF components; electronic manufacturing services, and digital audio/video instrumentation products.  Secure’s products are often used in mission critical applications in which they are exposed to severe operating environments and are integrated into aircraft, surface-to-air missiles, torpedoes, locomotives, subway cars, tactical ground vehicles or are carried by soldiers and other combat personnel.  The company is headquartered in Santa Ana, CA (www.securetechnologycompany.com).

During its term of ownership, Vance Street achieved significant growth in sales and profitability as a result of an expansion of the company’s products and customer base in both the defense and non-defense end markets. Vance Street also completed three add-on acquisitions with the buys of Tactical Micro in January 2014; Lark Engineering in September 2013; and Smart Electronics & Assembly in May 2013.

“Following our acquisition of Secure in 2009, we took several steps to grow the business. These initiatives included the implementation of continuous improvement processes, the creation of an advanced technology division to capitalize on the company’s strong engineering capabilities, and the addition of new products, technologies and customers via strategic acquisitions,” said Richard Crowell, Managing Partner at Vance Street Capital. “Secure is an impressive organization and the success we have had in partnership with CEO Allen Ronk and his management team has been gratifying.”

Vance Street Capital makes control investments in companies with enterprise values up to $200 million. Sectors of interest include general industrial, aerospace & defense, and medical components and devices.  The sale of Secure is the fourth from Vance Street Capital’s current fund, Vance Street Capital II LP, which closed in 2008. The firm is based in Los Angeles (www.vancestreetcapital.com).

“Secure has benefitted significantly over the last six years from the operational support and strategic guidance Vance Street Capital provided,” said Mr. Ronk. “Since 2009 our team of engineers has grown from less than ten to over 55 and our program base has grown from less than 30 to over 135. We remain focused on the many opportunities we see to meet and exceed our customers’ needs and continue to drive growth.”

Benchmark Electronics (NYSE: BHE), the buyer of Secure, is an electronics manufacturing services company that provides product development and contract manufacturing services to original equipment manufacturing companies. Benchmark is headquartered in the Houston suburb of Angleton (www.bench.com).

Harris Williams & Co. is the financial advisor to Secure and O’Melveny & Myers is acting as its legal counsel.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-28-15

CIVC Partners Exits Epic

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CIVC Partners has sold its portfolio company EPIC Technologies, a specialty electronics engineering and manufacturing company, to Natel Engineering Co. CIVC Partners first invested in EPIC in 2004.

EPIC is a specialty electronics engineering and manufacturing company in the high-mix, low-to-medium volume segment of the electronic manufacturing services (EMS) industry. EPIC manufactures complex printed circuit board assemblies and provides complete systems integration including board layout, test development, prototype testing, printed circuit board assembly and box build. Its customers are in the medical, energy, communications, industrial equipment and transportation markets. The company has plants in Ohio, Mexico, and Romania and is headquartered in Norwalk, OH (www.epictech.com).

Natel is a microelectronics manufacturer serving companies in the military, aerospace, telecommunication and medical industries. Natel was founded in 1975 and is headquartered in Chatsworth, CA with manufacturing locations in California and Nevada (www.NatelEMS.com).

“We are extremely pleased with the addition of EPIC because it strengthens and expands product solutions to include higher-level full system integration capabilities, as well as additional opportunities to reduce costs for our customers through the geographical distribution of our manufacturing locations,” says Natel President and CEO Sudesh Arora. “Natel’s history of strategic acquisitions has enabled us to grow and the acquisition of EPIC provides market diversification in the building infrastructure, lighting, transportation and energy industries.”

CIVC invests from $15 million to $85 million in middle-market companies that have revenues from $40 million to $300 million and minimum EBITDAs of $5 million. Sectors of interest include business services and financial services. CIVC currently manages over $1.2 billion in capital and is investing out of CIVC Partners Fund IV. The firm is based in Chicago (www.civc.com).

Lincoln International (www.lincolninternational.com), a Chicago-based investment bank, represented EPIC in this transaction.

© 2013 PEPD • Private Equity’s Leading News Magazine • 10-9-13