M&A Deal Summary

Washington Equity Partners, The Gladstone Companies, Farragut Capital Partners and Plexus Capital Acquire Arc Drilling

On November 21, 2017, private equity firm Washington Equity Partners, lender The Gladstone Companies, mezzanine finance firm Farragut Capital Partners and private equity firm Plexus Capital acquired manufacturer Arc Drilling

Acquisition Highlights
  • This is Washington Equity Partners’ 1st, The Gladstone Companies’ 5th, Farragut Capital Partners’ 5th and Plexus Capital’s 6th transaction in the Manufacturing sector.
  • This is Washington Equity Partners’ 1st, The Gladstone Companies’ 23rd, Farragut Capital Partners’ 66th and Plexus Capital’s 70th transaction in the United States.
  • This is Washington Equity Partners’ 1st, The Gladstone Companies’ 2nd, Farragut Capital Partners’ 3rd and Plexus Capital’s 2nd transaction in Ohio.

M&A Deal Summary

Date 2017-11-21
Target Arc Drilling
Sector Manufacturing
Buyer(s) Washington Equity Partners
The Gladstone Companies
Farragut Capital Partners
Plexus Capital
Deal Type Recapitalization
Advisor(s) EdgePoint Capital Advisors (Financial)

Target

Arc Drilling

Valley View, Ohio, United States
Arc Drilling is a provider of fast hole EDM, wire EDM, and sinker EDM manufacturing services. Arc Drilling is a long-time supplier to OEMs and Tier I suppliers in the industrial gas turbine, aerospace engine, and industrial markets. Arc Drilling has manufacturing operations in Cleveland, Greenville, South Carolina and Charleston, South Carolina. Arc Drilling was founded in 1961 and is based in Valley View, Ohio.

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Buyer(S) 4

DESCRIPTION

Washington Equity Partners is a private equity firm focused on opportunities in the aerospace, defense, industrial, software, and technology sectors. The Firm looks to invest $5 to $50 million of equity for controlling stakes in profitable companies with $3 to $15 million of EBITDA. Washington Equity Partners looks to help portfolio companies with a variety of growth/valuation creation strategies including acquisitions, operational improvements, recruiting, and access to capital markets. Washington Equity Partners was established in 2016 and is headquartered in McLean, Virginia.


DEAL STATS #
Overall 1 of 3
Sector (Manufacturing) 1 of 3
Type (Recapitalization) 1 of 2
State (Ohio) 1 of 1
Country (United States) 1 of 3
Year (2017) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-08-21 Accu-Tube

Denver, Colorado, United States

Accu-Tube is a manufacturer of quality standard and custom size stainless steel tubing. Sizes from small diameter hypodermic medical tubing .009" OD (.23mm) to .375"OD (9.35mm). Fabrication processes include welding, drawing, straightening, cutting, deburring, cleaning, bending, coiling, end-forming, beading, flaring, swaging, and others. Accu-Tube was founded in 1973 and is based in Denver, Colorado.

Buy -
Buyer

The Gladstone Companies

Investor


Category Lender
Founded 2001
PE ASSETS 2.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

The Gladstone Companies manages a series of publicly traded investment vehicles and looks to make debt and equity investments in US-based small to middle-market businesses. The Firm focuses on second lien debt, mezzanine debt, secured and unsecured subordinated loans, equity and real estate sale leasebacks. Target investments generally range from $5 to $30 million in companies with over $3 million in EBITDA. Target sectors include manufacturing, industrial products, business and government Services, media, communications, consumer products and services, healthcare services, transportation, specialty chemicals, and energy services. The Gladstone Companies was formed in 2001 and is based in McLean, Virginia.


DEAL STATS #
Overall 23 of 23
Sector (Manufacturing) 5 of 5
Type (Recapitalization) 3 of 3
State (Ohio) 2 of 2
Country (United States) 23 of 23
Year (2017) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-01 Behrens Manufacturing

Winona, Minnesota, United States

Behrens Manufacturing is a manufacturer and distributor of galvanized and metalware products that are sold primarily in home improvement, automotive, and hardware stores. Products produced by the company include a variety of galvanized steel products such as pails, garbage cans, utility tubs, planters, and funnels as well as other products for the promotional and advertising premium markets. Behrens Manufacturing was founded in 1911 and is based in Winona, Minnesota.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-06-04 Drew Foam

Monticello, Arkansas, United States

Drew Foam is a provider of custom-fabricated expanded polystyrene foam ("EPS") products serving the packaging, building products, and consumer end-markets, primarily in the Southeastern United States. Drew Foam was founded in 1965 and is based in Monticello, Arkansas.

Sell -
Buyer

Farragut Capital Partners

Chevy Chase, Maryland, United States


Category Mezzanine Finance Firm
Founded 2011
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Farragut Capital Partners LLC is a private investment firm that provides mezzanine and equity capital to help finance buyouts, generational transfers, growth capital financings, and recapitalizations. The Firm prefers asset-light businesses with unique and defensible market positions, stable business models, and reasonable capital expenditure and working capital needs. Sectors of interest include light and niche manufacturing, business services, distribution & logistics, and media. Farragut's target investment size is $2 to $10 million. Farragut Capital Partners was formed in 2011 and is based in Washington, District of Columbia.


DEAL STATS #
Overall 66 of 98
Sector (Manufacturing) 5 of 9
Type (Recapitalization) 12 of 16
State (Ohio) 3 of 7
Country (United States) 66 of 98
Year (2017) 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-11-03 Ted s Bulletin

Washington, District of Columbia, United States

Ted's Bulletin is a modern American diner with 6 locations in the Washington, DC market. Ted serves as a community anchor in its neighborhoods offering classic American comfort dishes. Ted's Bulletin was founded in 2010 and is based in Washington, District of Columbia.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-02-01 Insight 2 Design

Overland Park, Kansas, United States

Insight 2 Design provides outdoor products and portable lighting. Insight 2 Design develops outdoor products like – tents, sleeping bags, packs, camping furniture, lanterns, headlamps, flashlights, and more. Insight 2 Design was founded in 2012 and is based in Overland Park, Kansas.

Buy -
Buyer

Plexus Capital

Charlotte, North Carolina, United States


Category Private Equity Firm
Founded 1995
PE ASSETS 2.2B USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Plexus Capital is a private equity firm that invests in buyouts, acquisitions, recapitalizations and growth financings in the form of junior and/or equity capital. Plexus focuses on lower middle-market businesses located in the Mid-Atlantic and Southeast areas of the US. The Firm looks for businesses companies in the business services, consumer services, manufacturing, value-added distribution, and healthcare sectors with up to $2 to $15 million of cash-flow. Plexus Capital was formed in 1995 and is based in Charlotte, North Carolina.


DEAL STATS #
Overall 70 of 147
Sector (Manufacturing) 6 of 12
Type (Recapitalization) 22 of 29
State (Ohio) 2 of 3
Country (United States) 70 of 147
Year (2017) 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-10-25 Quality Oil Tools

Jennings, Louisiana, United States

Quality Oil Tools, Inc has developed an excellent reputation in the oilfield as a premier provider of high quality pressure control equipment, including gate valves, check valves, chokes and kill manifolds as well as replacement parts and repairs.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-12-01 Claris Vision

Warwick, Rhode Island, United States

Koch Eye Associates, Inc. is a provider of eye care and surgical practices, with twenty doctors treating patients at eight office locations, three laser vision centers, and a surgery center. Koch Eye Associates was founded in 1981 and is based in Warwick, Rhode Island.

Sell -