Washington Equity Partners Acquires Accu-Tube and Announces Kevin McGrath as CEO

Washington Equity Partners Acquires Accu-Tube and Announces Kevin McGrath as CEO

MCLEAN, VA / ENGLEWOOD, CO, August 21, 2018 – Washington Equity Partners (“Washington Equity,” a private equity firm based in the Washington DC metro area) today announced that it has acquired Accu-Tube Corporation (“Accu-Tube” or the “Company”), a leading manufacturer of highly engineered small-diameter stainless steel tubing. Washington Equity also announces the appointment of Kevin McGrath as Chief Executive Officer of Accu-Tube, effective immediately. In addition, Bill Ellerkamp and Diane Loudon will join the Company’s Board of Directors.  

 Founded in 1973, Accu-Tube manufactures top quality standard and custom size stainless steel tubing, ranging from.009" OD (.23mm) to .375"OD (9.35mm). The Company is headquartered in Englewood, Colorado and largely sells to the medical, aerospace and industrial end markets.   

 Prior to joining Accu-Tube, Kevin McGrath most recently served as Vice President, Advanced Surgical at Tecomet, Inc., a leading manufacturer of complex parts for the Medical Device and Aerospace/Defense markets. Prior to Tecomet, Mr. McGrath had executive management roles at Mountainside Medical (where he was one of three original co-founders), Accellent, MedSource Technologies, and National Wire and Stamping. 

 Jesse Liu, a Partner at Washington Equity, states that, “Accu-Tube is a clear market leader with unique engineering capabilities and differentiated products, and the customer demand for its tubing far exceeds the Company’s current revenue base. We plan to make significant investments to expand the Company’s manufacturing capacity, and are excited to be partnering with new CEO Kevin McGrath and the current Accu-Tube team to grow the business.”     

 Kevin McGrath, Chief Executive Officer of Accu-Tube, continues, “I am excited to join the Accu-Tube team as the Company begins its partnership with Washington Equity. I have been a longtime customer of Accu-Tube’s tubing and have a strong appreciation for the market-leading quality of its products, the strong capabilities of its talented management and employees, and the opportunity ahead. We look forward to enhancing our service levels to each of our current customers and building increased awareness of our capabilities across each of our market segments.” 

 Bob Knibb, a Partner at Washington Equity, added, “We are thrilled to add Accu-Tube to our portfolio and we will invest our capital, expertise and resources to significantly expand Accu-Tube’s operations, manufacturing footprint, and employee base. In addition, we are also eager to pursue potential acquisitions of companies that have complementary tubing capabilities.”     

Plexus Capital and Private Advisors provided debt and equity financing in support of the transaction. 

 EdgePoint served as the exclusive financial advisor to Accu-Tube. 

 

 About Washington Equity Partners

Washington Equity Partners is a sector-focused private equity firm that makes control equity investments in established lower middle market businesses with strong prospects for rapid organic and acquisition-driven growth. The firm is headquartered in McLean, VA and is focused on investing in: (i)Aerospace, Defense, and Government Contracting, (ii) Industrial and Advanced Manufacturing, and (iii) Software and Technology. www.w-equity.com

 

About Accu-Tube

Headquartered in Englewood, CO, Accu-Tube is a leading manufacturer of highly engineered small-diameter stainless steel tubing. The Company was founded in 1973 and is a long-time tubing supplier to OEMs and Tier I suppliers in the medical, aerospace and industrial markets. Accu-Tube’s standard and custom size stainless steel tubing ranges from .009" OD (.23mm) to .375"OD (9.35mm).   www.accutube.com

 Contact:

Jesse Liu, Bob Knibb or Hagen Saville

Washington Equity Partners

1420 Spring Hill Road, Suite 600

McLean, VA 22101

(202) 839-3410

www.w-equity.com

 

 Source: Washington Equity Partners

Washington Equity Partners, with Management, Leads Majority Recapitalization of Arc Drilling

Washington Equity Partners, with Management, Leads Majority Recapitalization of Arc Drilling

MCLEAN, VA / CLEVELAND, OH, November 21, 2017 – Washington Equity Partners (“Washington Equity,” a private equity firm based in the Washington DC metro area), in partnership with the Company’s existing owners and management, today announced an investment in Arc Drilling, LLC (“Arc Drilling” or the “Company”).  Headquartered in Cleveland, Ohio, Arc Drilling is a leading provider of electrical discharge machining (EDM) solutions to the industrial gas turbine and aerospace engine markets.  Arc Drilling is Washington Equity’s second portfolio company in the Aerospace, Defense and Government (ADG) sector and will serve as Washington Equity’s platform company in the growing EDM market. 

Founded in 1961, Arc Drilling’s capabilities include Fast Hole EDM, Wire EDM and Sinker EDM.  The Company has a long history of being an industry leader in production quality and turnaround times, and it performs EDM services on over 200,000 parts per year for a diversified customer base that includes GE, Parker Hannifin, Precision Castparts, Swagelok and Woodward.  With facility locations in Cleveland, OH, Greenville, SC, and Charleston, SC, Arc Drilling is strategically positioned near major industrial gas turbine and aerospace engine manufacturing centers. 

Arc Drilling’s current management team, led by Lee Trem and Kevin Trem, will continue to lead the Company going forward.  “We are very excited to partner with Washington Equity as we lead Arc Drilling through this next stage of transformative growth,” said Lee Trem, President of Arc Drilling.  “Market demand for high quality EDM suppliers like Arc Drilling is at an all-time high, and Washington Equity’s strategic focus on growth and market leadership make it an ideal partner for us.”

Kevin Trem, Vice President of Arc Drilling, commented, “We look forward to leveraging Washington Equity’s resources, relationships and domain expertise in gas turbines as we expand our business.  Having more resources and capital available will enable us to provide even better value to our customers through geographic expansion and the development of new capabilities.”     

Jesse Liu, a Partner at Washington Equity, said, “As a pure-play EDM provider, Arc Drilling is uniquely positioned to benefit from the growing demand in the turbine market for manufacturing technologies that can reliably produce small and complex hole channels and gas pathways.  Lee Trem, Kevin Trem and the entire management team at Arc Drilling have built an industry leader in EDM capability and execution quality and we are proud to have the opportunity to partner with them.”

Gladstone Capital, Farragut Capital and Siguler Guff provided debt and equity financing in support of the transaction. 

EdgePoint Capital provided M&A advisory services to Arc Drilling.  

About Washington Equity Partners

Washington Equity Partners is a sector-focused private equity firm that makes control equity investments in established lower middle market businesses with strong prospects for rapid organic and acquisition-driven growth.  The firm is headquartered in McLean, VA and is focused on investing in: (i) Aerospace, Defense, and Government Contracting, (ii) Industrial and Advanced Manufacturing, and (iii) Software and Technology. 
www.w-equity.com

About Arc Drilling

Headquartered in Cleveland, Ohio, Arc Drilling is a leading provider of Fast Hole EDM, Wire EDM and Sinker EDM manufacturing services. The Company was founded in 1961 and 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, Ohio; Greenville, South Carolina; and Charleston, South Carolina.  www.arcdrilling.com

Contact:

Jesse Liu, Bob Knibb or Hagen Saville
Washington Equity Partners
1420 Spring Hill Road, Suite 600
McLean, VA 22101
(202) 839-3410
www.w-equity.com

SOURCE: Washington Equity Partners L.L.C.