Graycliff scores 10x return on Talon Innovations sale to Ichor

  • Strategic buyer paid $130 mln for semiconductor equipment maker
  • Firm said revenue grew by 4x under its ownership
  • Ichor expects Talon to add $70 mln – $90 mln of annual revenue

Graycliff Partners made 10x its money on the sale of Talon Innovations Corp to Ichor Holdings, a source familiar with the matter said.

Ichor announced the closure of the transaction on Dec. 11.

Graycliff invested in Talon in September 2013. Based in Sauk Rapids, Minnesota, the company designs and manufactures precision machines for the semiconductor-equipment market, among other industries.

Ichor, a publicly traded provider of fluid subsystems for semiconductor capital equipment, agreed to buy Talon in November for $130 million. In a news release, Ichor said it expected the acquisition to generate between $70 million and $90 million of revenue annually.

Graycliff announced that Talon added more than 350 jobs, more than tripling its headcount, and increased annual revenue by 4x during the hold period.

Based in New York, Graycliff makes lower-middle-market private equity and mezzanine investments in the United States and Latin America. The team formerly invested as HSBC Capital and spun out in 2011.

Correction: Due to an editing error, a previous report included the wrong date of the deal announcement. The correct date is Dec. 11. The report has been updated.

Action Item: Check out Graycliff’s Form ADV here.

Technician working with silicon wafers in a high-tech lab. Photo courtesy leezsnow/XXX/Getty Images