Rift Valley Equity buys Arlington Machine and Tool Company

Rift Valley Equity Partners has acquired Arlington Machine and Tool Company. Financial terms weren’t announced. Fairfield, New Jersey-based Arlington Machine makes close-tolerance, machined components for the aerospace, defense, semiconductor and healthcare sectors. Heritage Equity Partners advised Arlington Machine.


FAIRFIELD, N.J. & EASTON, Md.–(BUSINESS WIRE)–Heritage Equity Partners (“HEP”), a premier M&A advisor to distressed organizations and special situations, today announced that it acted as investment banker and exclusive sell-side advisor to Arlington Machine and Tool Company (the “Company”) in the recently completed sale of the Company to Arlington Precision Components, LLC (“Arlington Precision”) an entity affiliated with leading middle market private investment firm, Rift Valley Equity Partners.
Heritage Equity Partners was retained by Arlington Machine and Tool on September 17, 2015 to explore a strategic sale of the Company to a buyer who could support the working capital needs of the growing CNC machining shop and manufacturing operations. HEP quickly obtained an offer from Arlington Precision, an entity formed by Rift Valley Equity Partners, and determined it to be the most desirable and best option for the Company. The sale to Arlington Precision was completed on November 6, 2015— a little over seven weeks from the date HEP was initially retained.
HEP’s extensive experience in identifying potential buyers and executing an expedited sales process enabled the Company to continue operating without interruption to meet the needs of its customers and vendors, while maintaining jobs for over 75 highly-skilled employees.
Commenting on the sale, John J. Staudinger, President of Arlington Precision Components and former Chief Operating Officer of Arlington Machine and Tool stated, “Because of Heritage Equity Partners process, we were able to put the company into a position where we are now hiring, expanding, and are assured to be successful and to grow substantially in the future. Because of this transaction, the future of Arlington looks brighter than ever.”
Arlington Machine and Tool was founded in 1963 by John Staudinger with one lathe, and over the years, grew into a leading manufacturer of close-tolerance, machined components for the aerospace, defense, semiconductor and healthcare sectors. The Company occupies a 56,000 square foot facility and its manufacturing capabilities include CNC milling and turning, assembly and inspection as well as value-added services such as programming, modeling and tooling. Arlington maintains AS9100 Rev. C and ISO 9001 certification. In order to continue providing innovation, service and quality for each of its end markets and customers, the Company was seeking a strategic buyer to support its working capital needs.
Professionals, who worked on the transaction, include:
• Paul DeFilippo of Wollmuth Maher & Deutsch served as legal counsel to the seller, Arlington Machine & Tool Company;
• Diane E. Vuocolo of Greenberg Traurig served as legal counsel for the secured lender, M&T Bank;
• Eric I. Moskowitz of Morrison Cohen served as legal counsel to the buyer, Arlington Precision Components, LLC
• Keith Northern of Qorval, LLC served as consultant to the secured lender, M&T Bank;
About Heritage Equity Partners (www.EquityPartnersHG.com):
Heritage Equity Partners (HEP), formerly “Equity Partners,” based in Easton, MD, provides boutique investment banking services for special situations. Recognized as the nation’s leader in maximizing value for distressed businesses and properties, Heritage Equity Partners uses a proven process that has provided solutions for over 450 clients throughout the United States since 1988, preserving more than 40,000 jobs. HEP is a wholly owned subsidiary of Heritage Global Inc.(OTCQB: HGBL and CSE: HGP).