NEW YORK, VICTORIA, and HOUSTON, July 8, 2019 ─ ATL Partners (“ATL”) and British Columbia Investment Management Corporation (“BCI”) announced today that they have acquired Valence Surface Technologies LLC (“Valence” or the “Company”), the largest independent aerospace surface finishing platform in North America. Existing management also invested in the Company.
Founded in 2013 and based in Houston, the Company provides critical surface treatments such as non-destructive testing, shot peening, chemical processing, plating painting and spray coating to aerospace and defense components that require complex finishing to meet engineering specifications. Valence currently operates eight (8) facilities throughout the U.S. in key aerospace and defense manufacturing regions, serving over 3,000 customers and processing over 12 million individual parts annually.
“Over the last several years we have built Valence into a market leading platform and we look forward to expanding the Company’s capabilities and geographic footprint as we seek to offer additional, differentiated services to our growing customer base” said Tracy Glende, Chief Executive Officer of Valence. “We are very excited to partner with ATL given their sector focus and in-depth knowledge of commercial aerospace and the surface finishing market.”
“ATL has followed the Valence story since the beginning and we are very impressed with the business that the Valence management team have built,” said Frank Nash, Founder and Managing Partner of ATL. “We believe there are many opportunities for growth in the Company, through both organic initiatives and strategic add-on acquisitions, and we are excited to support the Valence management team as they execute their strategic vision for the Company over the coming years.”
“Valence Surface Technologies is a well-managed leader in the aerospace industry, and BCI looks forward to supporting the business through its next phase [of growth],” said Jason Cawley, Senior Portfolio Manager, Private Equity at BCI. “This investment aligns with our clients’ long-term objectives to invest in companies with solid management teams and strong growth potential.”
Owl Rock Capital Corporation and Antares Capital LP provided debt financing to support the acquisition. Lazard Ltd. was financial advisor to the Company.
BCI’s acquisition of governance rights in the Company remain subject to customary regulatory approvals.
Valence Surface Technologies is the world’s largest independent provider of aerospace and defense metal finishing services. With eight (8) facilities, 750,000+ sq. ft. of manufacturing space, and over 3,500 unique industry approvals, processing more than 12 million parts per year. In addition to being Nadcap and AS9100 accredited, all Valence sites provide specialized metal processing and product finishing services for OEMs such as Airbus, Boeing, Lockheed Martin, SpaceX and more, supporting a highly diversified set of fast-growing commercial aerospace, defense, and space/satellite markets.
About ATL Partners
Founded in 2014, ATL Partners makes private equity and certain preferred securities or debt investments in the aerospace, transportation and logistics sectors principally in North America. ATL brings deep sector expertise to its investment approach with seven investment professionals and six Executive Board members who have decades of combined operating experience in each of ATL’s core sectors. For more information about ATL Partners, visit www.atlpartners.com.
With C$145.6 billion of managed assets, British Columbia Investment Management Corporation (BCI) is a leading provider of investment management services to British Columbia’s public sector and one of Canada’s largest asset managers. We generate the investment returns that help our institutional clients build a financially secure future. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk/return requirements over time. BCI’s private equity program, valued at C$10.3 billion, is focused on direct investments in industrials, technology, consumer/retail, healthcare, as well as financial and business services. For more information about BCI, please visit www.bci.ca.