test equipment

Tonka Sells Circuit Check to North Branch

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Tonka Bay Equity Partners has sold its portfolio company Circuit Check to North Branch Capital.

Circuit Check (CCI) is a manufacturer of test interfaces for printed circuit boards and other electronic and electro-mechanical devices. The company was founded in 1979 and is based northwest of Minneapolis in Maple Grove, MN (www.circuitcheck.com).

Tonka Bay led the buyout of CCI in January 2007 in partnership with Greg Michalko, CEO.  During Tonka Bay’s ownership period it grew the company by developing the senior management team, building an outside board of directors with industry experience, executing a strategy focused on functional test systems, and completing the August 2012 add-on acquisition of Cimtek – an electronic test equipment maker based in Burlington, Canada.

“CCI has proved to be a successful investment for Tonka Bay,” said Peter Kooman, Partner at Tonka Bay.  “Greg Michalko and his management team have done a tremendous job establishing the company as a leader in functional test systems.”

Tonka Bay Equity Partners invests in manufacturing, value-added distribution and business services companies that have EBITDAs greater than $2 million. The firm is based in the Minneapolis suburb of Minnetonka (www.tonkabayequity.com).

“Tonka Bay has been a value-added partner,” said Mr. Michalko.  “They have provided guidance and capital to make strategic investments, which has allowed us to accelerate growth and further differentiate CCI as a global leader of test solutions for the printed circuit board industry.”

North Branch Capital, the buyer of Circuit Check, invests in companies with revenues of at least $10 million and EBITDA of at least $2 million. Sectors of interest include value-added distribution, industrial and business services, and niche manufacturing. North Branch Capital was founded in 2014 and is led by its partners Jon Leiman, Dan Bauman, and Bill Huber. The firm is headquartered in Chicago (www.northbranchcap.com).

North Branch partnered with Midwest Mezzanine Funds (www.mmfcapital.com), RGA Reinsurance Company (www.rgare.com), Pulleyworks Capital (a St. Louis-based private equity investor), and the Circuit Check management team to complete this equity investment.

The Private Bank (www.theprivatebank.com) provided senior financing alongside subordinated debt investments by Midwest Mezzanine and RGA. Katten Muchin Rosenman (www.kattenlaw.com) served as legal counsel to the financial investors in the transaction.

Below is a corporate video describing the operations of Circuit Check.

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© 2016 PEPD • Private Equity’s Leading News Magazine • 1-13-16

Salt Creek Acquires King Tester

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Salt Creek Capital has acquired King Tester Corporation, a manufacturer and distributor of metallurgical testing equipment.

King Tester sells a full line of hardness testers, microscopes, scanning devices and supplies. The company is the leading supplier of portable Brinell hardness testers and microscopes worldwide.  King Tester was founded in 1955 and is based in King of Prussia, PA (www.kingtester.com).

Salt Creek Capital is a private equity firm focused on executive-led buyouts of profitable companies with up to $50 million in revenue.  Sectors of interest include business services, distribution, energy services, franchising, logistics and specialty finance. The firm is based in Menlo Park (www.saltcreekcap.com).

“We’re excited about the King Tester acquisition and about our partnership with Jim Knight, incoming-CEO of King Tester,” said Dan Phelps, Managing Director of Salt Creek Capital. “King has a long history of market leadership, and we look forward to working closely with Jim and the current management team to ensure a smooth transition to the company’s next phase of growth.”

Mr. Knight was a participant in Salt Creek Capital’s Executive Partnership Program which assists executives in identifying and acquiring small businesses.  He joined Salt Creek Capital as an Executive Partner in 2014 and is now the CEO of King Tester.

Before joining Salt Creek, Mr. Knight was the founder and CEO of Pelletco, a startup in the renewable energy sector.  Prior to Pelletco, he was the President and CEO of Knight-Celotex, a maker of fiberboards for the residential and commercial construction industry.  Earlier in his career, Mr. Knight held positions at several companies, including Chicago Metallic Corporation, SCA Consulting, The Boston Consulting Group, and Apple.  He has a BS in Finance from Boston University and an MBA from Dartmouth College.

“I am excited to partner with Salt Creek, a firm with a strong track record of investing in growing manufacturing companies, on this acquisition. I look forward to working with the team at King to continue serving our loyal customer base and further our mission of providing the most innovative products to our industry,” said Mr. Knight.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-16-15