Behrman Capital completed a dividend recapitalization for Data Device Corp. and a tax-free spin-off of ILC Dover to existing shareholders. The Data Device recapitalization consisted of a $300 million six-year term loan and a $30 million five-year revolving credit facility. Credit Suisse and GE Capital Corp. led the recapitalization. Behrman together with Clifford Lane acquired both businesses from ILC Industries in 2003 for $303 million. GE Capital also led the financing of a $37 million credit facility for Dover. Behrman is a private equity firm based in New York and San Francisco.
Behrman Capital, a private equity investment firm based in New York and San Francisco, announced today that it has completed a dividend recapitalization for Data Device Corporation (DDC) and a tax-free spin-off of ILC Dover (Dover) to existing shareholders. Both units were subsidiaries of ILC Industries, which was acquired by Behrman Capital, in partnership with Chief Executive Officer Clifford Lane, in 2003 through a transaction worth $303 million.
“Separating Dover from ILC will allow Dover management to focus on long-term strategic growth. Dover’s ability to protect people in the harshest environments has a wide variety of applications, and the company is poised to benefit from its leadership in advanced softgoods technology.”
DDC is a leading designer and manufacturer of microelectronic components for the defense, space and aerospace industries. Dover manufactures highly-engineered softgood products for various space, military, homeland security and commercial applications. Dover has been supplying space suits to NASA since the first lunar mission in the late 1960s.
The DDC recapitalization consisted of a $300 million six-year term loan and a $30 million five-year revolving credit facility. Credit Suisse and GE Capital Corp. led the DDC recapitalization. GE Capital also led the financing of a $37 million credit facility for Dover. Proceeds from the recapitalization and spin-off were used, along with cash on hand, to pay a cash dividend to shareholders and repay existing debt.
Grant G. Behrman, Managing Partner of Behrman Capital, said, “DDC is a very strong company with excellent growth prospects. Together with Clifford Lane and the ILC management team, we have been able to realize substantial value for ILC’s investors since acquiring the company in 2003. We look forward to our continued partnership with DDC as it pursues new opportunities for growth and expansion.”
He continued, “Separating Dover from ILC will allow Dover management to focus on long-term strategic growth. Dover’s ability to protect people in the harshest environments has a wide variety of applications, and the company is poised to benefit from its leadership in advanced softgoods technology.”
Latham & Watkins LLP acted as legal advisor to Behrman Capital for the transaction.
About Data Device Corporation
Data Device Corporation is the world leader in the design and manufacture of high-reliability data bus products, motion control, and solid-state power controllers for aerospace, defense, and industrial automation applications. DDC headquarters and their design and manufacturing operations are located in Bohemia, NY. For more information, visit www.ddc-web.com.
About ILC Dover
Since 1947, ILC Dover has been active in the design and development of products for both government and industry. Most Dover products are comprised of softgoods materials. Flexible by nature, these products provide innovative solutions to customer problems. For more information, visit www.ilcdover.com.
About Behrman Capital
Based in New York City and San Francisco, Behrman Capital was founded in 1991 by Grant G. and Darryl G. Behrman. The firm invests in management buyouts, leveraged buildups and recapitalizations of established growth businesses. The company’s investments are primarily focused in five industries: defense, specialty manufacturing, outsourcing, health care and information technology. The firm currently has a combined capital base in excess of $2.0 billion. For more information, please visit www.behrmancap.com.
For Behrman Capital:
Kekst and Company
Michael Freitag or James David