Graycliff Partners has acquired a majority equity interest in 901D, a provider of engineering, design, assembly and integration services for ruggedized consoles and protective enclosure systems. The current owners of 901D, Serge Seguin and Aldric Seguin, will continue to own an equity interest in the company and will be members of the company’s Board of Directors. The investment in 901D was made from Graycliff’s latest buyout fund, Graycliff Private Equity Partners III LP.
901D’s protective enclosure-based systems are made to customers’ exact specifications and are used with shipboard computing systems, command and control systems, vehicle communications systems and unmanned surveillance systems (“901D” is a military specification for high impact mechanical shock for equipment mounted on ships). Customers include defense, aerospace, security and industrial systems integrators that sell to the Department of Defense (Navy, Army, Air Force, Marines), and to companies operating in the maritime, homeland security, industrial, and oil & gas sectors. 901D has 120 active customers, with its top 10 clients averaging a relationship with the company for over 10 years. 901D is led by its CEO Frank Duvergne and is headquartered north of New York City in Tallman, NY (www.901d.com).
“We are excited to work with 901D’s outstanding management team and continue to build out the company’s product portfolio as the maritime electronics industry is poised for new opportunities,” said Stephen Hindmarch, a managing director at Graycliff. “We look forward to a very strong partnership as we help 901D expand into new end industries and reach as many customers as possible.”
Graycliff invests from $5 million to $25 million of equity and mezzanine capital in companies with revenues of at least $10 million and EBITDA margins of 10% or higher. Sectors of interest include manufacturing, services and distribution. Both control and minority investments are considered. The firm was formed in December 2011 by the former investment team of HSBC Capital. Graycliff is headquartered in New York with an additional office in São Paulo (www.graycliffpartners.com).
In 2014, the New York State Common Retirement Fund allocated $50 million to Graycliff Private Equity Partners III – the firm’s latest buyout fund. “We are pleased that the New York State Common Retirement Fund can play a role in helping New York businesses like 901D grow,” said New York State Comptroller Thomas DiNapoli. “Our In-State Investment Program is always on the lookout for opportunities close to home that offer solid returns.”
© 2016 Private Equity Professional • 7-7-16
