Tower Arch Capital Partners with ACS Manufacturing
Tower Arch Capital is excited to announce its latest initiative, which involves recapitalizing ACS Manufacturing, a prominent provider of specialized enclosures for power systems. This partnership represents a significant milestone for both organizations as they aim to broaden their presence in critical infrastructure markets.
About ACS Manufacturing
Established in 1995 and based in Denison, Texas, ACS is well-known for its specialty manufacturing of structural enclosures tailored for backup power systems. These enclosures play a crucial role in data centers, hospitals, and utility campuses, ensuring that power demands are met reliably and efficiently. In addition to offering custom-engineered solutions designed to meet the specific needs of each generator, ACS also produces integrated electrical wiring and switchgear components through its subsidiary, Tier Power Systems.
Manufacturing Facilities and Expertise
With an extensive footprint of 475,000 square feet across several manufacturing sites, ACS operates in Texas, South Carolina, and Arizona. This broad setup enables them to collaborate closely with data center owners and power generator OEMs, providing exceptional value and quality. The company's dedication to excellence is evident in every project they undertake.
Leadership Insight
Dan Knox, the President and CEO of ACS Manufacturing, shared his excitement about the future, stating, "We are committed to delivering the highest quality products and services to our customers. Our partnership with Tower Arch Capital presents an exciting opportunity as we aim for further expansion in the data center sector and beyond." David Parkin, a Partner at Tower Arch Capital, expressed his enthusiasm for the collaboration, emphasizing their goal of helping ACS enhance its capabilities and strengthen customer relationships. Rhett Neuenschwander, another Partner at Tower Arch, highlighted the thrilling journey ahead, focusing on supporting ACS's growth strategies.
Financing and Advisors
While the specific terms of the transaction have not been disclosed, it is important to note that financing was arranged by a consortium of banking institutions, including Bank of America, Truist Bank, UMB Bank, and Zions Bank. This transaction reflects the confidence these financial institutions have in ACS’s market potential and operational direction. Tower Arch Capital received advisory support from industry experts such as Caddo Lake Capital and BDO USA LLP, while ACS was represented by Jackson Walker LLP.
About Tower Arch Capital
Based in Salt Lake City, Utah, Tower Arch Capital is recognized as a lower-middle market private equity firm that focuses on nurturing high-quality family and entrepreneur-owned businesses. Their investment approach emphasizes forming partnerships that improve operational efficiency and implement growth strategies, specifically targeting businesses with EBITDA ranging from $5 million to $30 million. Tower Arch Capital is committed to creating long-term value for both investors and management teams.
Frequently Asked Questions
What is the focus of ACS Manufacturing?
ACS Manufacturing specializes in designing structural enclosures for backup power systems, primarily serving data centers, hospitals, and utility campuses.
Who is leading ACS Manufacturing?
Dan Knox is the President and CEO, steering the company towards growth and operational excellence.
What are the benefits of the partnership with Tower Arch Capital?
This partnership aims to enhance ACS Manufacturing’s capabilities, expand its geographic reach, and maintain strong customer relationships while promoting growth.
Where are ACS Manufacturing’s facilities located?
ACS operates manufacturing facilities in Texas, South Carolina, and Arizona, encompassing a total of 475,000 square feet.
What investment focus does Tower Arch Capital have?
Tower Arch Capital focuses on investing in family and entrepreneur-owned businesses, particularly those with EBITDA between $5 million and $30 million.
