July 6, 2010 “Spectrum Control was a natural fit for Sage Labs’ product line and technological capabilities, and we are glad that Bryant Park Capital was able to assist us in this small, but strategic acquisition leveraging their existing relationship with Ceralta Technologies to effect a speedy and efficient transaction that benefits both parties.” Jack Freeman, Chief Financial Officer, Spectrum Control, Inc.
Client Profile: Spectrum Control, Inc. (“Spectrum Control” or the “Company”) is a $180 million market capitalization publicly-traded company (Nasdaq: SPEC). The Company is a leader in the design, development and manufacture of high-performance custom electronic solutions for the defense, aerospace, communications, and medical industries worldwide.
Situation Overview: Spectrum Control was opportunistically looking for acquisitions to expand its product and technology capabilities and had identified its microwave division as an area of focus.
BPC Value Add: BPC, through its industry relationships as well as its strong contacts within the private equity community, kept its eye out for potential acquisition candidates for Spectrum Control. BPC approached Ceralta Technologies, Inc., the parent company of Sage Laboratories, Inc. (“Sage”), a highly-respected manufacturer of high performance radio frequency and microwave components and integrated assemblies that are used primarily in defense and homeland security applications, regarding a potential sale of its Sage subsidiary. As a result of its proactive approach, BPC made a proprietary, non-auctioned introduction of Sage to Spectrum Control, and utilized its trusted position with both parties to facilitate an open discussion, culminating in a successful transaction. BPC initiated this transaction, assisted in the negotiations and acted as exclusive financial advisor to Spectrum Control.
Deal Resolution: On June 18, 2010, Spectrum Microwave, Inc., a wholly-owned subsidiary of Spectrum Control, acquired substantially all of the assets and assumed certain liabilities of Sage Laboratories, Inc.
BPC Team: Bryant Park Capital Managing Directors Dan Pickens and Volfi Mizrahi led the transaction.