On the heels of its first control buyout of Merant PLC (Buyouts Aug. 27, p. 9) San Francisco-based Golden Gate Capital last month acquired a majority stake in Nu Visions, Inc. the former EMS subsidiary of Nu Horizons and electronic manufacturing services for approximately $31.5 million. The group financed the deal with $10 million in subordinated debt, which was provided by Libra Mezzanine Partners and a $15 million credit facility by Orix Financial Services and Comerica Bank. Tucker Anthony Cleary Gull advised the seller on the transaction.
Springfield, Mass.-based NU Visions specializes in providing high-complexity, low-volume electronic manufacturing services to original equipment manufacturers in the defense, industrial, and medical industries. The company had revenues north of $50 million last year.
“Anything technology-based that has high growth and high margin potential is attractive to us,” said Prescott Ashe, a managing director at Golden Gate. Ashe added that Golden Gate’s goal is to increase the company’s revenue by 15% to 25%.
Golden Gates’ partners see strong growth potential in the sector for hi-mix low-volume companies such as NU Vision. Similar to the Merant PLC, this transaction is indicative of a corporate parent looking to divest its contract manufacturing segment because it, like so many others, has restrained resources in this down economy, Ashe said. “What’s nice, from a Golden Gate perspective, is that the economy is creating some great deals,” he added.