Branford Castle has acquired Vitrek, a manufacturer of electrical safety test and measurement equipment.
Vitrek’s products, which include high potential testers, high voltage meters and power analyzers, are used to measure electrical safety and power consumption of a variety of consumer and industrial products in the electrical, medical, cable, power, lighting and consumer appliance sectors. High potential testers are used to verify electrical insulation in finished appliances, cables, wired assemblies, printed circuit boards, electric motors, and transformers. Vitrek was founded in 1990 and is headquartered near San Diego in Poway, CA (www.vitrek.com).
“Customers use our equipment to test their electrical products during the development stage and also in mass production,” said Kevin Clark, Co-founder and Chief Executive Officer of Vitrek. “Vitrek’s power analyzers aid design engineers in improving the power efficiency of their products. At the mass production stage, Vitrek’s electrical safety testers confirm that end-users will be protected from “electrical shock” when using that product.”
Branford Castle invests in companies that have enterprise values of up to $75 million and also have from $1.5 million to $15 million of EBITDA. Sectors of interest include industrials, consumer goods & services and transportation & logistics. Between its founding in 1986 to 2016, Branford Castle operated as a family office. The firm is led by John S. Castle and David Castle and is headquartered in New York (www.branfordcastle.com).
In October 2016, Branford Castle held a final close of its first fund that was open to outside investors and the buy of Vitrek is the fourth transaction completed by that fund. In February 2017 Branford Castle acquired Surface Preparation Technologies, a provider of rumble strips and related roadway safety services based in Mechanicsburg, PA (www.rumblestrips.com); in July 2016 it acquired Earthlite Massage Tables, a manufacturer of massage tables, spa and wellness equipment based in Vista, CA (www.earthlite.com); and in September 2017 the firm completed an add-on acquisition for Earthlite with the buy of Continuum Footspas, a designer and manufacturer of pedicure chairs and pedicure equipment based in New Berlin, WI (www.mycontinuumpedicure.com).
“We are moving rapidly to deploy our investors’ capital, and Vitrek represents an exciting growth opportunity,” said David Castle, a Managing Partner of Branford Castle. “We are especially pleased to be partnering again with Don Millstein, who is taking over as Operating Executive and Chairman of Vitrek. Don previously partnered with Branford Castle as President of E-Mon, a manufacturer of electrical sub-metering equipment that Branford sold for an 11x return.” Branford acquired Langhorne, PA-based E-Mon in 2007 and sold the company to Honeywell in 2010.
“We plan to establish a comprehensive sales and marketing program to begin to access or further penetrate growth markets and to formalize OEM program opportunities,” said Mr. Millstein. “We also want to expand the product line and launch an electronic component distribution program.”
“Vitrek continues our focus on acquiring companies that have strong organic growth and bolt-on acquisition growth potential,” said Laurence Lederer, a Managing Director of Branford Castle. “We see exceptional growth opportunities for Vitrek in 2018 and beyond.”
© 2018 Private Equity Professional | January 10, 2018