KippsDeSanto & Co. is pleased to announce the sale of its client, Seaward Marine Services, Inc. (“Seaward Marine” or the “Company”) to MHI Holdings, LLC, a portfolio company ofStellex Capital Management. Seaward Marine is a leading provider of underwater hull cleaning and ship husbandry services, including underwater painting, inspections, repair sand maintenance, testing, and other specialized diving services, primarily to the U.S. Navy, as well as other commercial and government customers.

Headquartered in Norfolk, VA, and supported by additional locations in California, Florida, Hawaii, and Japan, Seaward Marine’s team of highly-trained professional divers has consistently delivered mission-critical support services around the globe for more than 35years. The Company’s reputation is established on a foundation of experience, deep domain knowledge and technical expertise, and an emphasis on safety and accountability. Seaward Marine was recently awarded another five-year, multimillion dollar contract with Naval Sea Systems Command worldwide underwater hull cleaning and ship husbandry services. The Company has developed extensive Intellectual Property and robust tools to complement its unique offerings, including advanced processes, procedures, and techniques surrounding cleaning and safety, rigorous training regimens and continuing education for Seaward personnel, and a proprietary database designed to store hull readings, diagnostics, high-quality imaging, and vulnerability reports.

We believe this transaction demonstrates several key trends in the government technology solutions M&A environment:

• Strategic acquirers remain focused on acquisitions of companies with unique skillsets and proprietary processes and intellectual property
• Value continues to be placed on companies with established relationships withdefense and commercial customers, especially those aligned with evolving budget trends
• Continued interest in transformational acquisitions that provide synergies and presentlong-term growth opportunities with enhanced profitability

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and government technology companies.  For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein

 

Press Release

PE-backed MHI acquires Seaward and AME

NORFOLK, Va. – March 31, 2017 – MHI Holdings, LLC (“MHI”) announced today that it has completed the acquisitionsof Seaward Marine Services, Inc. (“Seaward”) and Accurate Marine Environmental, Inc. (“AME”). These are the first twoacquisitions since affiliates of the private equity firm Stellex Capital Management LP (“Stellex”) acquired MHI ShipRepair in 2015. The acquisitions mark the first expansion of the MHI business, broadening both the range andgeographic scope of services offered by the Company.

• Seaward is a leading provider of underwater hull cleaning and ship husbandry services, including underwaterpainting, inspections, repairs and maintenance, testing, and other specialized diving services, primarily to theU.S. Navy, as well as other commercial and government customers. Seaward has delivered mission criticalsupport to the U.S. Navy for over 35 years out of its Norfolk-based headquarters and offices in Florida, California,Hawaii and, Japan.
• AME performs bilge and tank cleaning, chemical cleaning, gas free engineering, and the removal of hazardousand non-hazardous materials for the U.S. Navy and commercial industries. AME, also headquartered in Norfolk,VA, performs work primarily across the East Coast of the U.S., including Virginia and Florida.

Tom Epley, Chief Executive Officer of MHI, commented, “Both Seaward and AME are world-class businesses that we have worked with and respected for many years. These additions to the MHI platform will allow us to better serve the needs of our customers both domestically and abroad.” Mr. Epley further commented, “Seaward and AME add capabilities that will augment MHI’s existing business, allowing the opportunity to bid on a wider variety of projects. In addition, both acquisitions expand the geographic reach of the MHI organization outside the port of Norfolk, a key development in the growth of our Company.”David Waxman, Managing Director at Stellex stated, “We believe these acquisitions are important steps to expandingMHI’s capabilities as one of the U.S. Navy’s leading ship repair contractors. We look forward to continuing to build theMHI platform while working with Tom and the team to grow each of its businesses.”Both Seaward and AME will continue to be run by their respective management teams.

About MHI Holdings, LLC

Headquartered in Norfolk, VA with nearly 500 employees, MHI is a major marine repair and conversion contractor serving Commercial ship owners, the U.S. Navy, Military Sealift Command and Maritime Administration and operators worldwide. MHI’s shipyard and full service pier is located in Norfolk, Virginia. The Company has earned their well-regarded reputation by providing accurate job pricing, reliability, quality and economical ship repair services to its clients for over 33 years.

About Seaward Marine Services, Inc.

Founded in 1972, Seaward is a leading provider of underwater hull cleaning, inspection, and repairs to the U.S. Navy and Commercial clients including underwater welding and painting. Headquartered in Norfolk, VA, and supported by additional locations in California, Florida, Hawaii, and Japan, Seaward’s team of highly-trained professional divers has consistently delivered mission-critical support services around the globe for more than 35 years.

About Accurate Marine Environmental, Inc.

AME was founded in 1994 and rapidly became a leader in the Hampton Roads area as an environmental service company providing marine and industrial tank and bilge cleaning services, environmental remediation, waste transportation and waste disposal services. Over the last 20 years, AME grew into one of the largest employee owned and operated environmental service companies in Norfolk. AME has a water front facility on the Elizabeth River complete with a 350’+ pier and state of the art water treatment plant.

About Stellex Capital Management LP

Stellex is a private equity manager that invests in and oversees US and European corporate assets. Stellex’s focus is on middle-market companies going through business or industry transitions, as well as special situation opportunities. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement, and growth for its portfolio companies.

KippsDeSanto & Co. is pleased to announce the sale of Sensor Technology Systems, Inc. (“STS”) and Diffraction Ltd. (collectively, the “Companies”), subsidiaries of The O’Gara Group, Inc. (“TOG”), to Steiner-Optik GmbH.  The Companies provide industry leading advanced situational awareness and intelligence, surveillance, and reconnaissance (“ISR”) solutions for the Department of Defense (“DoD”), Intelligence Community (“IC”), law enforcement, foreign government agencies, and select commercial customers.

STS (based in Beavercreek, OH), is a premier provider of mission-critical vision, beacon, and laser systems to support identification, surveillance, tagging, tracking, and locating, ultimately providing forward operators with decisive advantages in austere conditions, both day and night.  Diffraction (based in Burlington, VT), supports STS through high-end research and development capabilities, which serve to enhance existing STS solutions, as well as develop new products.  Together, the Companies have an established presence in the design and development of night vision systems, Heads Up Displays (“HUD”), and a suite of infrared imagers, illuminators, pointers, and thermal beacons.  The Companies continue to build upon extensive operational expertise supporting high-profile customers and covert Special Operations Forces (“SOF”) missions.  Through its partnership with Steiner-Optik GmbH, the Companies expect to deliver additional value to current customers, while expanding into emerging opportunities and adjacent markets with significant growth potential.

We believe this transaction demonstrates several key trends in the defense technology M&A environment:

• Commercial buyers seeking to acquire high-end, proprietary defense technology products to complement existing solutions for use in commercial applications
• Value continues to be placed on companies with differentiated technologies focused on ISR capabilities that improve situational awareness and enhance probability of mission success
• Importance of entrenched relationships with a diverse, well-funded customer base that supports demanding missions (e.g., U.S. Special Operations Command)

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace, defense, and technology companies.  For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

PRESS RELEASE

Beretta Holding Acquires Two Companies in U.S., STS and Diffraction Ltd.

• The two U.S. companies sell highly specialized products and systems mainly utilized for night vision applications

• The Group increases its presence in the United States, where it already generates more than 50% of revenues

• The two acquisitions will be part of the Electro-Optics Division

Gardone Val Trompia (BS), January 4, 2016 – Beretta Holding, through its German subsidiary Steiner, announces the acquisition of STS, based in Beavercreek, Ohio (USA), and Diffraction Ltd, based in Burlington,  Vermont (USA), both held by The O’Gara Group. The companies offer leading edge solutions in the field of night vision and related technologies relying on the strength of a solid and multifunctional team of highly skilled engineers. The two acquisitions represent an important strategic step in increasing the Group’s product offering in the field of electro-optics.

STS and Diffraction’s products utilize advanced technology recognized worldwide and primarily used by Western countries’ special forces, including the United States (all branches of the US military, government and law enforcement agencies) to many other agencies around the world (including Canada, UK, France, Germany, Italy, France, Switzerland, Norway, etc.).

The acquisition was completed on December 31st using the Group’s own financial resources without any external funding.

STS and Diffraction allow a further strengthening of Beretta Holding into the electro-optics sector, which currently accounts for approximately 15% of the total revenue of the Group, with offerings that includes a range of products and solutions in the electro-optics field, including aiming devices, binoculars, laser pointers and portable illumination systems.

This partnership is expected to drive a significant increase of technology and production synergies in the design and marketing of new products and solutions in an industry characterized by a high technological content, where the Group will continue to analyze the possibilities of further growth and integration.

An additional strategic benefit of the transaction for the Beretta Group is the ability to strengthen its presence in the US, where the Group currently generates more than 50% of sales and where investments for the transfer of the activities of Beretta USA to a new production facility located in Tennessee are currently being completed.

Pietro Gussalli Beretta, President and CEO of Beretta Holding, said: “Through the acquisition of STS and Diffraction, our Group achieves a fundamental step in its growth plan to achieve a leadership position in the field of electro-optics. We will continue our process of internationalization and investment in R&D to support the growth of all the companies of the group and to design products and solutions that are always innovative and competitive”.

Beretta Holding

Beretta Holding SpA is an international industrial group (94% of turnover is made abroad), with approximately 3,000 employees, active in the production and distribution of light firearms, used for sports, hunting and self-protection, clothing, accessories and advanced systems in the field of electro-optics.  It is based in Gardone Val Trompia (Brescia) and coordinates the activities of 26 companies operating in the main European countries, the United States (where it accounts for about 50% of sales) and in the major countries of other continents. Since inception to date the turnover and the number of subsidiaries is growing as a result of a careful policy of investments and strategic acquisitions, carried out in order to gradually expand the range of products offered and to ensure a direct commercial presence in the most important markets where it operates. Consolidated revenues in 2014 amounted to Euro 623 million, EBITDA to Euro 89.3 million and net income to Euro 40 million.

For more information:

Moccagatta Associati

8645.02 8645.1695 – 02 8645.1419

E: segreteria@moccagatta.it

KippsDeSanto & Co. is pleased to announce the sale of our client, Arkansas Power Electronics International, Inc. (“APEI” or “the Company”), to Cree, Inc. (“Cree”).  APEI develops, designs, and manufactures high performance power electronics and wireless systems, including motor drives, inverters, power modules, and DC / DC converters.  APEI has been a recognized industry leader in power modules and power electronics applications.   Based in Fayetteville, AR, APEI sits at the center of the SiC power module market, with a focus on providing high performance modules and systems and driving a market shift from traditional silicon-based power electronics towards SiC components.

We believe this transaction demonstrates several key trends in the electronics M&A environment:

• Attractiveness of proprietary, differentiated technologies
• Strategic acquisition to enhance technology depth, gain customer reach, and vertically integrate manufacturing to quickly capitalize on a rapidly growing market
• Growing demand for high performance, highly durable power electronics components for aerospace, defense, and commercial markets

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace / defense and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

 

PRESS RELEASE

DURHAM, N.C., July 9, 2015 – Cree, Inc. (Nasdaq:  CREE), a market leader in silicon-carbide (SiC) power and RF products  today announced the acquisition of APEI, a global leader in power  modules and power electronics applications. Combining two highly complementary innovators, the acquisition enables Cree’s Power and RF  business to extend its leadership position and help to accelerate the  market for high-performance, best-in-class SiC power modules.

This acquisition strengthens Cree’s market-leading position for SiC power electronics, infusing the Power and RF business with additional  intellectual property and applications expertise at the systems level  from APEI. The companies’ shared mission to deliver the industry’s most  innovative SiC power products has already led to successful  collaboration on multiple government contracts. In 2014, the  co-development of a High-Performance Silicon Carbide-based Plug-In  Hybrid Electric Vehicle Battery Charger on an ARPA-E program resulted in  an R&D 100 award, recognizing the 100 most innovative technology  advancements of the year.

“Adding this expert team of innovators and portfolio of patents will enable us to further disrupt and expand the market,” said Frank Plastina, executive vice president, Cree Power and RF. “Extending our  research and development capabilities with APEI, a leader in wide bandgap power R&D, will help us accelerate delivery of a full spectrum of SiC power modules to meet customer requirements for performance and cost.”

“Joining forces with the market leader in silicon-carbide power gives  us an opportunity to commercialize our products faster,” said Dr.

Alex  Lostetter, president and CEO of APEI. “This ideal combination of chip  technology and packaging will give us first-mover advantage, helping us  to set the industry standard for power modules.”

The APEI team, now Cree Fayetteville, Inc., will continue to be based  in Fayetteville, AR., and will operate as part of Cree’s Power and RF  business. Under the terms of the agreement, Cree will acquire APEI in a  merger transaction. The transaction is not targeted to have a material  impact on Cree’s fiscal 2016 earnings.

About Cree, Inc.

Cree is leading the LED lighting revolution and making energy-wasting  traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading  innovator of lighting-class LEDs, LED lighting and semiconductor products for power and radio-frequency (RF) applications.

Cree’s product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree® products are driving improvements in applications such as general illumination, electronic  signs and signals, power supplies and solar inverters.