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Behrman Completes Another Dividend Recap For DDC

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Behrman Capital has completed a $515 million dividend recapitalization of Data Device Corporation (DDC), a provider of connectivity and power products used in aerospace, defense, and industrial applications.

DDC is a designer and manufacturer of data networking, motion control, and solid-state power controller products for aerospace, defense, and industrial applications. The company was founded in 1964 and is headquartered in Bohemia, NY (www.ddc-web.com).

Behrman acquired DDC when it acquired ILC Industries in April 2003. At that time, ILC Industries was composed of two operating subsidiaries: Data Device Corporation, a manufacturer of microelectronic components for the aerospace and defense industries, and ILC Dover, a manufacturer of soft good materials for space, military and commercial applications.

Since acquiring DDC, Behrman Capital has completed two add-on acquisitions with the buy of Emrise Electronics in June 2015 and National Hybrid in July 2013.  The firm also spun off ILC Dover to shareholders January 2011.

This is the sixth recapitalization of DDC since being acquired by Behrman in April 2003.  Today’s recapitalization was completed with a $515 million one-stop facility (that included a $25 million revolving credit facility, which was unfunded at closing). Golub Capital (www.golubcapital.com) is the administrative agent on the transaction.

“The steps we have taken in partnership with management to build on DDC’s world-class reputation as a leading supplier to the aerospace and defense industries have enabled us to realize significant value for DDC’s investor,” said Grant Behrman, Managing Partner.  “We look forward to our continued partnership with DDC as the company executes on its strategic plan and pursues new opportunities for growth.”

Behrman Capital invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The firm’s investments are primarily focused in four industries: health care, specialty manufacturing, business-to-business outsourcing and defense.  The firm has raised five funds with a combined capital base in excess of $3 billion.  Behrman Capital was founded in 1991 by Grant G. and Daryl G. Behrman and has offices in New York and San Francisco (www.behrmancap.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-20-15

Summit Park Acquires NSi

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Summit Park has acquired NSi Holdings, a supplier of insulated connectors and mechanical and digital time controls.  The transaction closed on December 28th, 2012, marking Summit Park’s third investment in the past eighteen months.

NSi is a supplier of a wide variety of electrical connectors, time switches, wire management products, and related electrical components for construction, maintenance, and repair applications.  Brands include Polaris insulated connectors, Tork time and lighting controls, and Easy-Twist wire connectors.  The company’s products are sold to end users primarily through the electrical distributor channel.  NSi Holdings was founded in 1975 and is based in Charlotte, NC (www.nsiindustries.com).

Summit Park makes investments in lower middle market companies in a range of industries that have revenues between $10 million and $100 million or EBITDAs between $4 million and $10 million. The firm is based in Charlotte, NC (www.summitparkllc.com). 

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-11-13

Morgenthaler Private Equity Exits Avtron Industrial Automation

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Avtron Holdings, a portfolio company of Morgenthaler Private Equity, has sold Avtron Industrial Automation, a provider of control and automation products, to Nidec Corporation.

Avtron Industrial Automation (AIA) manufactures AC and DC drive systems, diagnostic and productivity software, and encoders to the cranes and material handling, pulp and paper, mining, metals, and marine sectors. The company’s products and systems are used for the precise control of the motion of heavy industrial equipment in applications such as oil and gas drilling rigs, port cranes and hoists, mining shovels and draglines, maritime vessel propulsion systems, steel rolling mills, and paper machines. AIA has 150 employees and was founded in 1953. The company is headquartered in Independence, OH (www.avtron.com).

AIA was one of three companies owned by Avtron Holdings. In March 2012, Avtron Loadbank was sold to Emerson. Avtron Aerospace was not part of this transaction and will continue to operate under Avtron and be owned by Morgenthaler Private Equity.

Morgenthaler Private Equity invests in companies in the lower middle market with transaction values between $25 million and $150 million and EBITDA in excess of $5 million. Sectors of interests include high-value manufacturing and proprietary business services. The firm has offices in Cleveland, OH and Boston, MA (www.morgenthaler.com).

Western Reserve Partners served as financial advisor to Morgenthaler Private Equity.

© 2012 PEPD • Private Equity’s Leading News Magazine • 10-1-12