KippsDeSanto & Co. Advises Capewell Aerial Systems on its Sale to Argosy Private Equity
KippsDeSanto & Co. is pleased to announce the sale of its client, Capewell Aerial Systems (“Capewell” or the “Company”) to Argosy Private Equity (“Argosy”).
Capewell is a leading designer, manufacturer, and distributor of aerial delivery, life support, and advanced tactical products for aerospace, defense, public safety, and law enforcement customers.
Capewell supports customers both domestically and internationally through a broad range of capabilities, to include design engineering, machining, life cycle support services, precision assembly, RF welding, and technical sewing. Capewell’s differentiated solutions have led to enduring positions on key programs and platforms, including the Army Air Warrior program, the C-130 aircraft, and various Boeing commercial aircraft. In-house engineering and internal R&D efforts drive new product development, resulting in a variety of proprietary solutions among Capewell’s numerous product lines. Customers depend on these proprietary products – to include parachute releases, emergency descent devices, and helicopter hooks, among others – to ensure the safe and successful execution of a wide variety of missions.
We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:
- The global aerospace / defense market remains robust, as equity private equity firms continue to seek opportunities to acquire firms with exposure to industry tailwinds and strong market fundamentals
- Companies with differentiated and proprietary solutions, coupled with entrenched positions on key, well-funded platforms and programs continue to drive interest among acquirers throughout the aerospace / defense M&A market
- Private equity firms continue to leverage strong credit markets and remain active in the aerospace / defense market to compete alongside strategic buyers
About KippsDeSanto & Co. KippsDeSanto & Co. is the largest independent investment banking firm exclusively focused on serving leading, 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.
CapitalWorks, LLC Exits Investment In Capewell Aerial Systems
September 13, 2018
CLEVELAND, OHIO – Cleveland private equity firm CapitalWorks, LLC announced the sale of its investment in Capewell Aerial Systems (“CAS” or the Company), a designer and manufacturer of highly advanced air soldier tactical gear, search & rescue, parachute, and aerial delivery products, to Argosy Private Equity. Terms of the deal were not disclosed.
After acquiring Capewell Holdings in 2014, CapitalWorks transformed Capewell from a component business to a full solution provider through its acquisition and integration of Aerial Machine and Tool. The combined company, Capewell Aerial Systems, became the world leader in innovative tactical safety products for the air warrior. “CapitalWorks added tremendous value through its network and strategy development. CapitalWorks assembled a world class advisory board and provided us with management processes that have given us an advantage over our competitors,” said John Marcaccio, CEO and President of Capewell Aerial Systems.
Todd Martin, Managing Director of CapitalWorks, commented, “We have truly enjoyed the partnership with John Marcaccio, his team and the CAS Advisory Board. While it is bittersweet, we are confident that John and his team have built a strong platform that will continue to create value. CAS is another example of CapitalWorks successfully partnering with management to position a business for future success.”
CapitalWorks, LLC was advised on the transaction by KippsDeSanto and legal counsel was provided by Calfee, Halter, & Griswold. Ironwood Capital was a trusted financial partner.
Working with Todd Martin on the transaction for CapitalWorks were Vice President, John Corrigan and Associate, Patrick Chang.
About Capewell Aerial Systems
Capewell Aerial Systems (http://capewellaerialsystems.com/) designs and manufactures highly advanced air soldier tactical gear, search & rescue, parachute, and aerial delivery products. CapitalWorks’ initial investment in the Company was made through its acquisition of Capewell Holdings in 2014, which was subsequently separated into two distinct operating companies (Capewell Systems and Ripley Tools). The acquisition of Aerial Machine & Tool by Capewell Systems created Capewell Aerial Systems. Ripley Tools remains a CapitalWorks portfolio company and is the leading developer and manufacturer of specialty hand tools for the fiber optic, telecom and utility industries as well as testing equipment for the fiber optic industry.
CapitalWorks LLC (capitalworks.net) is a Midwestern and family-focused private equity firm that encourages knowledgeable investors to partner with it in finding, vetting and owning companies. Based in Cleveland, Ohio, CapitalWorks acquires lower middle-market companies in the niche manufacturing, value-added distribution, and business services industries and gives them the capital, support and freedom to grow. Recent acquisitions include C&M Conveyor, GEMCITY Engineering and Manufacturing, Paradigm Windows and Chemtron Corporation. Founded in 1999, CapitalWorks’ investors are primarily successful entrepreneurs and executives who contribute to the evaluation and investment process.