Wind Point Makes Add-On Acquisition –

Chicago-based private equity firm Wind Point Partners made its first add-on acquisition recently through the platform company, Procyon Technologies, it created one year ago in the defense and aerospace sector.

Through Procyon it acquired aerospace component company G&H Technology for an undisclosed amount.

“It was a small acquisition, it’s a nice fit for the platform company and it gives us new, complementary technology,” said Bob Cummings, a managing director with Wind Point Partners.

Wind Point Partners and William Hall founded Procyon Technologies in fall 2000. The company focuses on energy conversion and actuation devices for the defense and aerospace industries. The company’s two operating divisions, Scot and McCormick Selph, make the products that allow for ejection from a military jet. The company’s major customers are the U.S. Air Force, U.S. Navy and other major defense contractors.

Cummings said G&H Technologies, which was founded in 1947 and provides connecting devices used in airplanes, missiles, space vehicles and submarines, “has a very good reputation among contractors” and a technology device that is “a strong, mission-critical component used in a number of missile defense systems” both factors that made the company attractive to his firm. The acquisition therefore expands Procyon’s product offerings and extends its customer base.

Cummings said Wind Point decided to create a platform in the defense and aerospace sector when it did because “we felt the industry was poised for a resurgence, whatever the outcome of the [presidential] election. This was mostly a reflection of the very depressed spending [in this sector] through most of the ’90s, which showed a constant decline, particularly in the operating and maintenance area, which in effect keep the forces battle-ready.”

For the moment, Wind Point has no exit strategy for its new acquisition. “Building the company is our priority right now,” said Cummings, acknowledging that with the war in Afghanistan, “the accelerated military spending will have an impact on our business.”

In October, Wind Point acquired Rehab Associates, an outpatient rehabilitation services provider, through its Benchmark Medical portfolio company. Wind Point Partners was founded in 1983, and the firm’s current fund, Wind Point Partners IV, has capital commitments of $405 million.