Branford Castle Expands Portfolio with Testek Solutions Acquisition

Branford Castle Acquires Testek Solutions

Branford Castle Partners, a prominent private equity firm focused on the North American market, has recently made a strategic move by acquiring Testek Solutions. This company is well-regarded as a leading manufacturer of aviation component testing equipment. The financial terms of the transaction, however, have not been publicly disclosed.

Significance of the Acquisition

The acquisition of Testek Solutions marks a significant milestone for Branford Castle, being the seventh platform investment and the twelfth acquisition for its Fund II, which was closed in 2021. In recent months, Branford Castle has also successfully acquired another company, Hoffman Engineering, and executed profitable exits from its investments in Clean Solutions Group and Earthlite Massage Tables.

About Testek Solutions

Headquartered in Wixom, MI, Testek Solutions specializes in designing and manufacturing advanced testing solutions specifically for military and commercial aircraft components. Since its inception in 1969, Testek has built a solid reputation within the aerospace industry. Their innovative products are trusted by numerous major airlines, the U.S. military, Maintenance, Repair and Overhaul (MRO) enterprises, as well as aerospace and defense OEMs (Original Equipment Manufacturers).

Leadership Commitment

With this acquisition, Testek's CEO, Bruce DeWitt, along with the existing management team, will continue to lead the company, ensuring a seamless transition. DeWitt expressed his enthusiasm about the new partnership with Branford Castle, highlighting the immense potential as the aerospace sector continues to grow, leading to increased demand for specialized aviation testing equipment.

Market Opportunities

Eric Korsten, the Senior Managing Director at Branford Castle, shared insights on the market dynamics, stating that the aerospace industry is poised for expansion. This growth reflects the need for Testek's innovative testing solutions, which align perfectly with the evolving requirements of the aviation sector. Korsten believes that Testek's strong market position and proprietary technologies present a terrific platform for further growth.

Future Growth Vision

DeWitt also shared a candid sentiment regarding this milestone, seeing it as a testament to the commitment to delivering trusted solutions and maintaining a customer-centric culture. He acknowledged the importance of their previous sponsor, Odyssey Investment Partners, in reaching this new stage and expressed eagerness to pursue future growth opportunities alongside Branford Castle.

Support from Partners

Branford Castle has appreciated the crucial support of longtime financing partner Siguler Guff & Company in facilitating this transaction. David Castle, Managing Partner at Branford Castle, emphasized the importance of this support in expanding their growing portfolio of investments.

Advisory Roles

In the advisory capacities, Branford Castle received legal advice from Akerman LLP, while RSM provided accounting and tax advisory. Additionally, Testek Solutions was counseled on the sell-side by Kroll investment banking. The transaction was supported by unitranche debt capital and equity from Siguler Guff & Company, which plays a pivotal role in Branford Castle's financial backing.

About Branford Castle Partners

Branford Castle is a dedicated private market investor with a focus on lower middle-market investments, boasting over 35 years of experience in nurturing business growth. The firm targets control investments in companies with EBITDA up to $15 million, emphasizing the importance of forming strong connections with the management teams of its portfolio companies. It has established expertise in various sectors including industrials and specialty manufacturing, consumer products, business services, and logistics.

Frequently Asked Questions

What does the acquisition of Testek Solutions involve?

The acquisition allows Branford Castle to enhance its portfolio with Testek's specialized aviation testing solutions.

Why is Testek Solutions important in the aviation sector?

Testek Solutions is recognized for its advanced testing equipment, crucial for ensuring the safety and reliability of aircraft components.

Who will lead Testek Solutions after the acquisition?

CEO Bruce DeWitt and the current management team will continue to lead Testek following the acquisition.

What are the expected outcomes from this acquisition for Branford Castle?

Branford Castle anticipates leveraging Testek's position in the market for substantial growth in the aerospace equipment sector.

How does Branford Castle support its portfolio companies?

Branford Castle fosters strong relationships with portfolio company managers to aid growth and strategic development.

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