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KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its acquisition of Wenzel Associates, Inc.

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its acquisition of Wenzel Associates, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition of Wenzel Associates, Inc., by our client, BEI Precision Systems & Space Company, Inc. (“BEI Precision”), a portfolio company of J.F. Lehman & Company (“JFLCO”).

Headquartered in Austin, Texas, Wenzel is at the forefront in the design and manufacture of crystal oscillators, fixed frequency systems, integrated microwave assemblies, and synthesizers for military, space, and commercial applications.  This marks the second acquisition BEI Precision has made since it was acquired by JFLCO in April 2017, and further solidifies BEI Precision’s robust portfolio of high-end positioning sensor solutions.

Similar to BEI Precision, Wenzel products are differentiated via their ability to provide the highest performance (e.g., lowest phase noise) reliably in extreme environments. Wenzel’s oscillators are key components on numerous military and space platforms, typically on a sole source basis. Notable examples of Wenzel’s past work include providing space-flight hardware for the Lunar Reconnaissance Orbiter for NASA, as well as oscillators for the Mars Pathfinder Lander and the National Polar-orbiting Operational Environmental Satellite System (“NPOESS”).  Currently, Wenzel is engaged to supply oscillators for numerous radar and electronic warfare systems found on high-profile aviation, land and naval platforms. BEI Precision intends to leverage Wenzel’s position on these noteworthy programs to further penetrate existing and tangential customer opportunities.  The acquisition of Wenzel further deepens BEI Precision’s existing base of high-end engineering talent, along with offering additional manufacturing and testing capabilities in Austin.

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Press Release

BEI Precision Announces Acquisition of Wenzel Associates, Inc.

October 23, 2019

NEW YORK – BEI Precision Systems & Space Company, Inc. (“BEI Precision”), a portfolio company of investment affiliates of J.F. Lehman & Company (“JFLCO”), announced today the recent acquisition of Wenzel Associates, Inc. (“Wenzel”).

Headquartered in Austin, Texas, Wenzel is a leading designer and manufacturer of crystal oscillators, fixed frequency systems, integrated microwave assemblies and synthesizers for military, space and commercial markets. Since 1978, Wenzel has defined the state-of-the-art in ultra-low phase noise crystal oscillators, manufacturing products that are capable of highly reliable and precise performance in extreme environments. Wenzel is supported by its Croven Crystals division in Whitby, Ontario, which supplies precision quartz resonators with extremely low noise and low sensitivity to vibration. Wenzel is the second add-on acquisition completed by BEI Precision under JFLCO’s sponsorship.

BEI Precision is a leader in high-accuracy positioning sensor technologies, providing advanced design, manufacturing and testing for reliable and resilient products and systems. BEI Precision’s core product lines, which are used primarily in mission-critical defense and space applications, include optical encoder-based and resolver-based positioning systems, scanners for situational awareness requirements and precision accelerometers. BEI Precision is headquartered in Maumelle, Arkansas with an operating subsidiary in Edinburgh, Scotland, and has a longstanding track record of technological innovation, with corporate roots dating back to 1862.

Mark Mirelez, Chief Executive Officer of BEI Precision, commented, “Our partnership with Wenzel will further strengthen both organizations’ abilities to meet the unique and evolving requirements of our customers, particularly in the space and military markets.”

“The Wenzel acquisition further enhances BEI Precision’s reputation as a provider of the highest-performance advanced sensing and positioning solutions for critical applications,” said Steve Brooks, Partner at JFLCO. “We are excited to welcome Wenzel and its strong engineering-focused culture to the BEI Precision platform,” added Will Hanenberg, Principal at JFLCO.

KippsDeSanto & Co. served as financial advisor to BEI Precision and JFLCO, and Jones Day (lead counsel) and Baker Hostetler (international trade, government contracts and defense security compliance matters) provided legal counsel. Sperry, Mitchell & Company served as financial advisor to Wenzel while McGinnis Lockridge were Wenzel’s legal representatives for the transaction.

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KippsDeSanto & Co. Advises Kforce, Inc. on its sale of TraumaFX Solutions to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners

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KippsDeSanto & Co. Advises Kforce, Inc. on its sale of TraumaFX Solutions to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, TraumaFX Solutions (“TFX” or the “Company”), a subsidiary of Kforce Inc., (NASDAQ: KFRC), to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners (“GCP”).

TFX is a leading developer, designer, and manufacturer of proprietary medical simulators that improve human and K9 survivability following trauma related incidents.  The Company has a leading position within its core markets and is well known for delivering high-fidelity simulators that deliver the most lifelike training experiences on the market.  TFX has established deep and recurring relationships within the well-funded Department of Defense (“DoD”), given its 10-year history supplying mission-critical products.

With the acquisition, TacMed, a provider of hemorrhage control and related safety products, expands its product portfolio, enabling the combined entity to cross-sell its complementary product offerings.  Additionally, the acquisition will expand TacMed’s customer base and accelerate the Company’s expansion into adjacent markets.

We believe this transaction demonstrates key trends in the training and simulation M&A environment:

  • Specialized and differentiated product offerings drive value in the market place
  • Company-owned IP provides important barriers to entry and promotes customer “stickiness”
  • Buyers remain interested in companies with strong margin profiles and recurring revenue
  • Both buyers and sellers continue to gain value from corporate divestitures

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Press Release

Tactical Medical Solutions Announces the Acquisition of Leading Medical Simulator Manufacturer, TraumaFX

ANDERSON, S.C.–Tactical Medical Solutions, a leading innovator and manufacturer of proprietary pre-hospital medical components and technology for tactical and civilian applications, and Guardian Capital Partners, announce the acquisition of TraumaFX Solutions.

TraumaFX is the global market leader in innovative medical simulation and training technologies that improve survivability of severe injuries on the battlefield and in civilian casualty situations. TraumaFX specializes in high-fidelity, rugged simulators that deliver the most lifelike experience for trainees while enabling field exercise in any environment and weather condition.

TraumaFX’s innovative platform, with its advanced sensor technology, monitors critical treatment procedures and wirelessly transmits data to trainers so instruction can be optimized in real-time. After-action reporting provides objective feedback to leaders and staff confirming competencies, capabilities, and readiness.

“With a growing need to deliver trauma response capabilities in many environments, the addition of TraumaFX provides our customers a continuum of capabilities, from training support to market leading products, that will enhance their ability to respond when required,” said Ross Johnson, TacMed CEO. “Tactical Medical Solutions’ mission is to lead in trauma response and minimize preventable death. That starts with training and ensuring responders have access to life-saving medical technology. We are pleased to add TraumaFX to our portfolio as nothing on the market creates a more realistic and effective training environment than the TFX product line. We know it will support our clients’ efforts to deliver on their critical mission.”