Merit Capital Partners has exited its investment in Simi Valley, California-based RSA Engineered Products, a maker of airflow control systems as a result of the latter’s acquisition by TriMas Corporation. No financial terms were disclosed.
MERIT CAPITAL PARTNERS EXITS RSA ENGINEERED PRODUCTS
Merit Capital Partners is pleased to announce the successful exit of its Fund V investment in RSA Engineered Products (“RSA” or the “Company”). RSA was sold in February 2020 to TriMas Corporation, a diversified global manufacturer and provider of products for customers primarily in the consumer products, aerospace and industrial end markets.
Merit made its investment in RSA in 2012 in partnership with Cornerstone Capital Holdings. Headquartered in Simi Valley, California, RSA designs and manufactures a broad array of highly-engineered airflow control systems for use in commercial and military aircraft. RSA’s primary products include ducting, anti-icing and ozone products. The majority of the Company’s sales are comprised of proprietary part numbers exclusive to the Company. RSA sells to a broad customer base that spans a high number of both legacy and new aircraft platforms.
Jonathan Alt, a Principal and Founder of Cornerstone Capital commented, “Our collective investment in RSA was a great success story for all stakeholders. Merit was the ideal capital partner for this complex transaction, which included the challenge of capitalizing a corporate carve-out, and establishing a new operating facility within a few months of closing. Throughout our investment period, we worked alongside Merit to expand capacity and build an exceptional management team, ultimately leading to a successful exit for the shareholders and management.“
Merit invested both subordinated debt and equity in its acquisition of RSA.
Merit, Cornerstone and RSA were advised on the transaction by Houlihan Lokey. Please contact Evan Gallinson or Tim MacKenzie for additional information.
Merit Capital Partners is a private investment firm which invests both equity and subordinated debt in our transactions. We have raised over $2.2 billion of capital since 1993 through six institutionally sponsored limited partnerships. Merit partners with business owners, management teams and independent sponsors to provide flexible capital for management buyouts, recapitalizations, acquisition financings and other shareholder liquidity events. We are open to both control and non-control ownership positions. Merit focuses on high-quality, established businesses with carefully conceived operating strategies, principally in manufacturing, distribution and services industries. Our goal is to work with committed owners and strong managers to help increase a company’s value.
We generally invest between $15 million and $60 million in companies with minimum EBITDA of $4 million. For more information on Merit Capital Partners, please visit www.meritcapital.com.