Nogales Investors has acquired a controlling interest in DR Technologies from Huntington Capital, via a recapitalization. No financial terms were disclosed, but LBO Wire puts the equity piece at approximately $20 million. DR Technologies is a San Diego-based maker of composite structural products for aerospace and defense applications.
Nogales Investors, a Los Angeles-based private equity firm, has acquired a controlling interest in DR Technologies, a company engaged in the development and manufacturing of advanced composite structural products for aerospace and defense applications. The transaction was structured as a recapitalization, whereby Nogales Investors provided liquidity to outside shareholders, while management retained a substantial ownership position in the company.
“DR Technologies is strongly positioned to capitalize on the long-term trends in the aerospace industry, and specifically the continued use of composites in a wide variety of aerospace applications,” said Luis Nogales, Managing Partner of Nogales Investors. “Going forward, management will continue to own a significant equity stake in the business, and we look forward to a successful partnership with Lyle Dunbar and his management team.”
DRT conducts its business through the DRT parent company and its wholly-owned subsidiary companies: Vanguard Composites Group, V System Composites and Vector Composites. The company and its subsidiaries have quality and management systems certified for ISO9000:2001 and AS9100 levels for aerospace production. Major products and applications include highly-engineered antenna reflectors and bus structure components as well as assemblies for commercial telecommunications, military, and civil satellites; production of composite structural components and assemblies for military and civil aircraft, missile, engine, and electronic applications; space solar-power components and subsystem assemblies for satellites; and production of precision composite tube products, composite electronics enclosures, and specialized electronic structural products for aerospace applications. Further information on DR Technologies and its subsidiary companies can be found at www.drtechnologies.com
Lyle Dunbar, Founder and CEO of DR Technologies stated, “We are pleased to complete this recapitalization of our company and obtain the financing necessary to implement our growth strategy. We selected Nogales Investors as our financial partner for a number of traditional reasons, but a unique reason was their approach to partnering with the management/employee shareholder team to provide a sound foundation for the company’s continued growth.”
About Nogales Investors
Nogales Investors Management LLC is a private equity investment firm based in Los Angeles that manages capital for some of the largest institutional investors in the world. Nogales Investors makes investments in middle market businesses located throughout the United States, investing $10 million to $40 million per transaction in companies valued from $25 million to $250 million. The goal of the company’s investments is to generate superior returns while at all times maintaining the highest levels of fairness, integrity and professionalism. The firm aims to complete transactions that meet the needs and aspirations of all parties through a creative and flexible investment approach which results in either a control or non-control ownership position for the fund.