Transactions
Acumentrics Holding Corporation
Westwood, Massachusetts
Power Generation for remote power applications
INVESTMENT AMOUNT: $3,000,000
INVESTMENT DATE: August 2014
“Cap X partners really delivered for Acumentrics, with a term loan that required a deep understanding of the two quite different business lines of the Company. They did very thorough homework on us, worked with us to fit the credit to the Company, were clear on their parameters and were able to deliver what they promised. They have been a pleasure to deal with.”
— John Cerulli, Chief Financial Officer, Acumentrics
INVESTMENT SITUATION
Acumentric (Westwood, Massachusetts) is leader in AC and DC uninterruptible power supplies for military and industrial power conditioning, backup power supplies, and other mission-critical applications. The holding corporation consists of two wholly owned subsidiaries, both of which are experiencing considerable growth opportunities.
Acumentrics RUPS, LLC is a preferred supplier of US-made power electronics to most of the world’s largest prime defense contractors. The company’s Rugged-UPS™ products are trusted in punishing environments with over 60,000 units deployed globally in military and industrial sites. They feature a unique Flo-Thru™ heatsink tunnel design and gasket sealed enclosure to provide maximum protection for components from the damaging effects of moisture, airborne particles and other contaminants.
Acumentrics SOFC Corporation is its solid oxide fuel cell subsidiary. A start-up in nature, it currently develops and manufactures a line of clean, reliable electric power generators with DC or AC outputs up to 10kW. Applying a proprietary tubular, ceramics-based fuel cell technology to serve remote, off grid and military applications, electrical power generators efficiently convert commonly available propane, natural gas or liquid fuels directly to electricity without combustion.
THE CAPX APPROACH AND SOLUTION
Acumentrics turned to the debt markets to strengthen its balance sheet and improve its capital structure. CapX provided a $3 million senior term loan that refinanced the Company’s existing debt and provided additional growth capital. The new facility positions the Company to exploit significant growth opportunities on both sides of its business.
“CEO Gary Simon and his team, along with the support of lead investor SourceSquared LLC, have established two attractive niche businesses. We have enjoyed working with John Cerulli, CFO, and James Wilson at SourceSquared to provide growth financing for these exciting businesses, and we look forward to an expanding relationship in the future.”
— Stephen Healey, Managing Director, CapX Partners