Transforming Vision Into Value


Kidd & Company is a principal investment firm that takes a unique approach. Our investment model is based on an intensive research process to design businesses that transform their industry segments, combined with the hands-on involvement required to successfully execute those strategies. Our ability to build highly successful businesses has enabled our firm to generate world-class investment returns.


About Us

Kidd & Company (“KCO”) is the private investment arm of the Kidd family office. The firm traces its roots to 1976 when Bill Kidd made his first private equity investment. Since that time, the firm has grown and prospered by following a non-traditional approach to private equity investing, both in terms of firm structure and investing philosophy. KCO is not a typical private equity firm—we are not a fund. The partners fund the operational costs of the firm, and we invest our own money in every transaction. Our investing philosophy is rooted in identifying opportunities that will produce above-market returns for us and our investor-partners through rigorous execution of a strategy-led investment thesis.

We partner with founders/owners and senior management of businesses who have created valuable franchises but who, for personal, professional and financial reasons, have reached a stage in their business life cycle where they desire outside resources—managerial, operational and financial—to help them take their businesses to the next level, while also addressing their lifestyle objectives.

Our focus is on strategy-led investments in the lower end of the middle market (typically companies with less than $10 million EBITDA) where the complementary skill set of the partnership between KCO and company management can be applied to create value over time by fundamentally improving the businesses in which we invest. Returns in our business model are derived directly from the execution of our investment strategy and from fundamental improvements—operational, managerial, financial—that we enable during our ownership period.

Our investments may be standalone businesses or may involve the simultaneous acquisition of multiple companies to create the necessary foundation to achieve our investment goals. We are generalists in terms of the businesses in which we invest, but the unifying theme of our investments is a cohesive strategy, developed at the outset, that forms the basis of an execution plan that is rigorously pursued to improve the underlying business operations, accelerate growth, create and/or enhance competitive differentiation and substantially boost profitability. Our firm’s structure allows us to be more creative and flexible in the types of transactions we evaluate, and in the manner in which we structure our investments. This allows us to best satisfy the interests of varied constituents—founders/owners, management, lenders, employees and investor-partners—in each individual transaction.

Approach

We are not a typical private equity firm. Our superior investment returns are derived by fundamentally improving business operations and accelerating growth, not undertaking financial engineering or collecting asset management fees. We differentiate ourselves in terms of our own business model as well as through our investing philosophy. Our approach is to think and act like business owners, not passive investors. We maintain a disciplined focus on our core market—the lower end of the middle market—and seek to make strategy-led investments in partnership with business owners and founders.

Middle Market

We focus on the lower end of the middle markets

Businesses of this size benefit the most from our direct involvement—it is in this segment of the market where we as a firm have the most to offer—therefore, by focusing our efforts here we can produce differentiated returns for ourselves and our investor-partners (including the owners/founders of businesses in which we invest).

We believe inefficiencies in this segment of the market afford the most attractive investment opportunities from a risk/return perspective.

The engine of economic growth in this country is small businesses. By investing our time, effort and capital here, we can help build the next generation of world class businesses and thereby derive differentiated returns for ourselves and our investor-partners.

Strategy-Led Investments

We focus on strategy-led investments

We want to "control our own destiny" as much as possible in terms of generating investment returns for our partners and ourselves. That is, we do not rely on economic or other forces that are beyond our control or influence to derive our returns. We believe that rigorous execution of a sound business strategy is the key to driving fundamental value and generating exceptional investment returns, while best controlling downside risk.

We believe the days of high leverage and ever ascending purchase price multiples are gone. Without a differentiated business strategy, the ability to generate fundamental value, and thereby derive differentiated returns, is severely limited if not non-existent.

For a firm of our size, our partners have remarkably diverse backgrounds and skill sets. It is this experience that allows us to work with founders and management to actively assist in the execution of the strategy, rather than to act as passive investors.

Change, and the ability to adapt to it, is a business reality in today's economy. Only by thoughtfully exploiting changes underway in a given marketplace can businesses emerge as leaders in the future.

Partnering with Business Owners

We focus on partnering with business owners / founders

Our philosophy is to partner with business owners/founders to help them achieve a shared long-term vision for the businesses they have created. We are often the first non-family or non-founder investor in the businesses in which we invest. We do not generally "cash out" business owners entirely - rather we structure our transactions to align interests and allow business founders and owners to benefit from the dramatic value creation that we can create together.

Very often, the single largest repository of knowledge and experience about a given business is the owner/founder of that business. We value that knowledge and experience and want to build on it. Only by creating a real partnership can we truly access this value as the foundation for our investments.

We provide substantial, tangible value to business owners/founders by bringing a wealth of experience and skills that are not often present in smaller companies. By combining our strengths, we can accelerate growth and value creation far more than could be accomplished on a standalone basis.

We are business owners and entrepreneurs ourselves, and we welcome and enjoy working with other entrepreneurs.

Value
Creation

How do we create value
While we do not run companies on a day-to-day basis, we are actively involved in all aspects of the businesses in which we invest. We work with management to drive the execution of our investment strategy and to implement fundamental business improvements to accelerate growth and improve profitability.

Although our level of involvement in any particular investment depends on the specifics of that company’s needs, the areas in which our value creation efforts are generally focused include the following broad categories:

  • Implementation of Management Best Practices–organizational, operational and financial
  • Management Evaluation, Enhancement and Augmentation
  • Governance and Board of Directors, including the recruitment of independent directors
  • Strategic Planning
  • Sales and Marketing
  • Financial Function/Office of the CFO
  • Corporate Finance and Treasury
  • M&A and Corporate Development
  • IT Systems: Financial and Operating
  • Human Capital – supplement senior leadership team within company, as needed

Case Studies

Imaginetics

 

Website: www.imagineticsinc.com

Status: Current Investment

Thesis
The commercial aerospace supply chain is currently responding to unprecedented demand from OEMs that are in the process of scaling their production facilities to meet record-level backlogs. As OEMs continue to outsource more of their production, they will rely more heavily upon well-regarded suppliers with a historical track record of success and a demonstrated ability to grow to meet their increasing needs.


Company

Founded in 1989, Imaginetics is a manufacturer of precision metal components and assemblies for the aerospace industry.

Overview

In December 2012, KCO, in collaboration with an institutional investor, acquired Imaginetics. The founders and owners of the business made a substantial ongoing investment.


KCO Value Add:

Recruited Chairman of the Board of Directors with deep domain expertise and strong industry relationships.

Filled newly created positions of CFO and VP of Sales & Marketing.

Met with key customers to explain the strategic vision and obtain buy-in.

Created detailed 100-Day Plan to guide executional priorities.

Driving formal sales and marketing strategy to expand existing customer relationships and to develop new business opportunities.

Implemented formal strategic planning and budgeting process.

Applied enhanced financial reporting and controls, including flash reports, operational dashboard and audited financial statements.

Structured the acquisition financing to provide for substantial ongoing liquidity for growth (more than $5 million at close).

Upgraded current facility to showcase breadth of capabilities for existing and new customers.

Numet

 

Website: www.numet.net

Status: Current Investment

Thesis
Capitalize on trends in the gas turbine engine supply chain to create a leading manufacturer of high-precision, low-run parts and components for use in aerospace and defense, power generation and other end use markets.


Company

For more than 25 years Numet has been a leading supplier of high precision parts for use in gas turbine engines for commercial and military customers in the aerospace industry.

Overview

In September 2011, KCO acquired a majority interest in Numet. The founders and owners of the business made a substantial ongoing investment.


KCO Value Add:

Recruited and hired CEO and CFO, prior to close.

Created detailed 100-Day Plan to guide executional priorities.

Formed formal Board of Directors with outside industry expert participation.

Introduced formal strategic planning and budgeting process.

Consolidated and relocated four sub-optimal facilities into one new state-of-the-art facility with room for growth.

More than tripled backlog in less than three years.

Funded more than $5 million of expansion capital expenditures for initial platform creation and future growth.

Applied enhanced financial reporting and controls, including flash reports, operational dashboard and audited financial statements.

Hired new VP of Operations and new Quality Manager.

Implemented new ERP financial and manufacturing system.

Improved operational scheduling, on-time tracking and backlog reporting.

Overhauled employee benefits and welfare programs to provide substantially better options for employees at lower cost.

RelaDyne

 

Website: www.reladyne.com

Status: Current Investment

Thesis
Combined with the structural changes in the lubricant value chain that have created an opportunity to consolidate the lubricant distribution industry, there was a void in the technical knowledge and provision of services around best practices for use of lubricants in a proactive equipment reliability management strategy. Kidd & Company sought to combine the complementary capabilities of well-established best-of-class industry leaders in the business of distributing commercial and industrial lubricants and related services into a new platform company that would provide value-added equipment reliability management products and services along with traditional lubricants to commercial and industrial customers.


Company

RelaDyne is a leading supplier of lubricants and comprehensive equipment reliability management products and value-added services.

Overview

In November 2010, KCO facilitated the simultaneous acquisition of four leading regional lubricant distributors to form RelaDyne. The founders and owners of each of the platform companies made a substantial ongoing investment in RelaDyne, and they each continue to be actively involved in the company.


KCO Value Add:

Developed investment thesis and strategy and had discussions with more than 200 prospective companies.

Negotiated letters of intent to acquire four companies to form the initial RelaDyne platform.

Led the process of recruiting and hiring a Chief Executive Officer and Chief Financial Officer prior to close.

Created supporting management team by placing former leaders of each business into functional corporate positions that leverage their respective strengths and expertise.

Developed the concept of an industry-leading field reliability management services unit to implement specific lubrication based equipment reliability programs for customers.

Consolidated financial reporting of four companies into one unified view.

Identified a comprehensive company-wide ERP system to facilitate the integration of the business units.

iPacesetters

 

Website: www.ipacesetters.com

Status: Current Investment

Thesis
Capitalize on the opportunity to be a value-added marketing and sales partner, not just a commodity contact center, by providing customized client solutions to a few target vertical markets, utilizing a needs-based selling approach.


Company

iPacesetters powers growth and prosperity of its clients through high quality customer engagement solutions. Its contact center solutions combine high-tech and high-touch to help clients better market/sell their products/services.

Overview

In 2004, the principals of KCO acquired then-named American Pacesetters, an outbound call center with less than $3 million of revenue and manual processes. Through a combination of its involvement and its investment in people, processes, and technology, KCO has grown the company, organically and via acquisition, to $40 million in revenue with global operations and a world-class client base.


KCO Value Add:

Identified the initial platform acquisition, as well as several follow-on acquisitions.

Grew the management team, both in quality and quantity, as the company grew.

In combination with the management team, integrated the various follow-on acquisitions.

Established focus on program and operational Key Performance Indicators (KPIs).

Invested in new technology infrastructure with advanced functions and capabilities.

Diversified the end market and client base well beyond the initial two core clients.

Expanded both domestically and internationally to serve its growing client base.


Year

Key Initiatives

2004

Enterprise-wide process evaluation/design
Implementation of new accounting system

2005

Contact center operational system design/implementation
Quality assurance system design/implementation

2006

Cradle-to-grave project management system design/implementation
Two small “books of business” acquired to diversify client base within B2B publishing

2007

Integration of operating, project management, QA & accounting systems
Added new operational management with significant industry experience

2008

More proactive solutions orientation implemented
Several new clients within trade publishing industry added

2009

Identification of key strategic growth initiatives
Addition of offshore capacity via acquisition of small Indian company

2010

Expansion to other vertical markets via acquisition of provider to cable companies
Addition of customer database management and non-voice communication technologies

2011

Further expansion into cable end market through acquisition of another player in space
Selection by Comcast as single partner for development of Xfinity Home product line

2012

Expansion into telecom and financial services end markets via acquisition
Enterprise-wide technology upgrade/integration design/testing

2013

Enterprise-wide technology upgrade implementation (network, infrastructure, etc.)
Investment in new client development initiative, resulting in major new client wins

Chatham Technologies

 

Status: Exited

Thesis
KCO began the process by taking a high-level look at the electronics industry with the objective of finding a low-tech industry segment supplying a high-tech market that was ripe for a new way of doing business. After performing a significant amount of research, KCO decided to pursue the electronic enclosure industry, which is the casing on an electronic system that, in addition to providing a certain appearance and structure to the product, protects it from environmental exposure.


Company

Chatham Technologies provide complete system solutions to the communications infrastructure industry. Its turnkey services encompass system design, fabrication, integration, testing, logistics and deployment of electronic enclosures.

Overview

KCO identified the leading companies who manufactured electronic enclosures and assembled the components within the enclosure and acquired seven businesses with all transactions closing on the same day. Starting with a business that generated $147 million in revenue, KCO and management grew the company in three years through internal growth and the acquisition of complementary business to revenue of $600 million, at which point the company was acquired by Flextronics International Ltd.


KCO Value Add:

Developed the investment thesis.

Acquired the seven companies that were part of the initial closing and consummated several add-on acquisitions.

Recruited the management team.

Worked with management to install and refine the infrastructure and systems required to support a company positioned for above-average growth.

Arranged for all of the financing for the transaction, including significant availability of capital for capital expenditures and working capital.

With management, developed and implemented a strategic plan that resulted in Chatham becoming a global company in a three-year period, with operations in eight countries.

Team

William J. Kidd
William J. Kidd

William J. Kidd Founding Partner

Bill has been investing in privately owned companies since 1976. His aim in founding Kidd & Company was to build a firm that was both personally and professionally fulfilling for its principals. "We've been fortunate to have a great team. We're always thinking. There's enormous satisfaction in taking an idea no one has thought of before and building it into a company that changes the rules of the game." Bill earned both his BA and MBA from Cornell University.

James G. Benedict
James G. Benedict

James G. Benedict Principal

James joined Kidd & Company in 2005 and oversees all of the human resource and recruiting aspects of new and existing investments. James joined Kidd & Company from Spencer Trask, a venture capital firm, where he served as Senior Managing Director & Chief Talent Officer. Prior to joining Spencer Trask James was Managing Director and Co-Head of the E-Commerce and Technology Practice for the Diversified Search Companies. He joined the Diversified Search Companies via Diversified's acquisition of RLM Associates, where he was Co-Founder and Partner. James has also served as a consultant to the World Bank and the Japanese Ministry of Finance. James earned a Ph.D. in International Economics from Columbia University, a Certificate on Monetary and Fiscal Policy from the Japanese Ministry of Finance, and a Bachelor of Arts (Honors Program Graduate with Distinction) from Baylor University.

Anthony T. Castor III
Anthony T. Castor III

Anthony T. Castor III Managing Director/Partner

Tony joined Kidd & Company in 2009 as its Managing Director and Operating Partner. Tony has a 25 year track record as a CEO, building and running businesses across a variety of industries in the US and international markets, including the capital equipment, chemicals, automotive, construction, pool and spa industries. Tony has been the CEO of Katy Industries, Chromalox, The Morgan Group, Precision Industrial Corporation, Hayward Industries and Inland Specialty Chemical Corporation. He also held several senior management positions at Crompton Corporation and Uniroyal. Tony began his career in marketing at Thiokol Corporation. He currently serves on several private equity-backed boards. Tony graduated from Pfeiffer University where he earned a B.S. in Chemistry and Business Administration. He is also a graduate of the Advanced Marketing Management Program at Harvard Business School.

Matthew A. Cook
Matthew A. Cook

Matthew A. Cook Principal

Matt joined Kidd & Company in 2012 with experience in investment banking, venture capital, and management consulting. Previously, Matt worked as an investment banker at MHT Partners and Canaccord Adams where he completed numerous public and private financing, merger and acquisition, and advisory engagements for middle-market growth companies. Matt also worked as a principal venture capital investor at Braemar Energy Ventures and management consultant at PricewaterhouseCoopers LLP. Matt’s experience includes work in aerospace, clean technology, energy, business services, consumer goods, and industrial products. Matt received a BS in Accounting and BS in Business Administration from Villanova University and an MBA from Yale University’s School of Management.

Gerard A. DeBiasi
Gerard A. DeBiasi

Gerard A. DeBiasi Partner

Gerry joined Kidd & Company in 2001 and has been the driver of the iPacesetters transformation and growth strategy, in addition to being involved in MedSource and Empower Health. He came to KCO from one of its portfolio companies, Chatham Technologies, where he served as SVP of Business Development/M&A and was instrumental in driving value from his work in developing the original strategy to executing the strategy on a day-to-day basis. He spearheaded senior relationship development with several global customers, headed the SWAT team responsible for operational integration and directed the acquisition activities of the company. Prior to Chatham, Gerry was a strategy consultant with The Monitor Company over a ten-year period. He also worked at Fidelity Investments and The Federal Reserve Board of Governors, in addition to co-founding a specialty publishing company. Gerry received a BA in Economics, summa cum laude and Phi Beta Kappa from Dartmouth College and received his MBA from Harvard.

Donald M. Hardie
Donald M. Hardie

Donald M. Hardie Partner

Don Hardie joined Kidd & Company as a partner in 2009. Previously, Don was a partner in private equity at Investcorp International, a leading alternative asset investment firm with $13 billion of AUM. Don brings over 20 years experience in private equity investing, corporate finance and law, having previously served as an investment banker in leveraged finance with Credit Suisse First Boston and as an attorney with White & Case. Don received his J.D. from New York University School of Law and a BA from the University of Virginia where he was an Echols Scholar.

Kenneth J. Heuer
Kenneth J. Heuer

Kenneth J. Heuer Principal

Ken joined Kidd & Company in 2008 and participates in all facets of the firm’s activities, including sourcing new opportunities, investment strategy development, conducting technical, financial and market due diligence, maintaining relationships with debt and equity co-investors and overseeing strategy execution for existing investments. Previously Ken was a Managing Director at Spencer Trask, an early-stage venture capital firm, where he worked with companies in the life sciences, healthcare, information technology, software and communications sectors. Prior to Spencer Trask, Ken was an investment banker at JPMorgan, where he worked on numerous capital-raising and M&A transactions. Ken received a BS in Civil Engineering from Lehigh University and an MBA from New York University, where he was a Stern Scholar. Ken currently serves on the Board of the New York Chapter of the Alliance of Merger & Acquisition Advisors (AM&AA).

News

06.19.2014

Rand Partners with Kidd & Company in International Customer Acquisition and Retention Business, iPacesetters LLC

Rand Capital Corporation (www.randcapital.com) [NASDAQ: RAND] a Buffalo, New York based Business Development Company (BDC) and Small Business Investment Company (SBIC) announced that it has partnered with Kidd & Company LLC (www.kiddcompany.com) “KCO” in a $3.0 million equity financing for Teleservices Solutions Holdings, LLC, which operates as iPacesetters LLC (www.iPacesetters.com), a 1,600+ seat customer contact center specializing in customer acquisition and retention for selected industries.  The Company operates in seven states and two international sites.

Pacesetters was founded over 25 years ago and has since grown to be a leading point of customer contact across many industries, including: Cable and Broadband, Telecom and Wireless, Home/Office Security, Financial Services, Energy and Utilities; Healthcare and more.

Kidd & Company originally acquired iPacesetters in 2004, as part of its focus on strategy-led investments in the lower end of the middle market where it can create value over time by fundamentally improving the businesses in which it invests.  William Kidd, founding Partner of KCO,  stated: “We have been long-time investors in the business, and are very pleased to welcome Rand Capital as a fellow investor.  We continue to see opportunities to significantly grow the business, both organically and via acquisition.”

Allen F. Grum, Rand’s President, stated: “We are pleased to partner with Kidd & Company to provide expansion capital for iPacesetters to help fund its continued growth with current customers and new opportunities.  As a leading sales organization, they bring measurable growth and increase in positive outcomes for their clients.”

Gerry DeBiasi, Partner of Kidd & Company and Executive Chairman of iPacesetters stated: “The vision we have had for the Company has been to continue to excel in assisting select industries in providing superior levels of customer engagement.  This has provided our client base with market leading lead generation, appointment setting, acquisition and retention services to their customers.  The new capital will continue to expand our foothold in this dynamic marketplace.”

Safe Harbor Statement
Information contained in this release should be considered forward-looking, and may be subject to inherent uncertainties in predicting future results and conditions.  Please see the Corporation’s Form 10-Q, Item 1A, previously filed with the Securities and Exchange Commission for a detailed discussion of the risks and uncertainties associated with the Corporation’s business.

About Rand Capital
Rand Capital is a publicly held Business Development Company (BDC). Its wholly owned subsidiary is licensed by the Small Business Administration (SBA) as a Small Business Investment Company (SBIC).  Rand provides capital and managerial expertise to small and medium sized private companies primarily located in the Northeast U.S.  Rand is traded on the NASDAQ under the symbol “RAND” and is headquartered in Buffalo, NY.  www.randcapital.com Contact:  Chris Tofalli, Public Relations, (914) 834-4334

About Kidd & Company
Kidd & Company, LLC is an Old Greenwich, Connecticut-based principal investment firm.  KCO traces its roots to 1976 when William Kidd made his first private equity investment.  Today, KCO is the private investment arm of the Kidd Family Office engaged in sponsoring private equity transactions in the lower middle market.  The firm's focus is on driving superior returns by implementing fundamental strategic and operational improvements to drive above-market growth in revenue and earnings, both organically and through accretive acquisitions.  The diverse skill set of its partners allows KCO to bring management, operational, sales and marketing, corporate finance and M&A expertise to bear to substantially increase the total value of its investments.  For more information, visit www.kiddcompany.com.

05.29.2014

Numet Announces Promotion of Mark Roscio to CEO

Scott Kokosa Promoted to CFO

ORANGE, CT, May 29, 2014 – Numet Manufacturing Techniques (“Numet”), a manufacturer of precision metal components and assemblies for jet turbine engines, today announced the promotion of Mark Roscio to President and Chief Executive Officer, effective immediately.   Also, Scott Kokosa was promoted to Chief Financial Officer.

Mr. Roscio was previously Senior Vice President of Sales and Marketing.  Additionally, Mr. Roscio is one of the original owners of Numet who reinvested in the business when it was acquired by Kidd & Company, LLC, a private investment firm, in August 2011. Donald M. Hardie, a Partner at Kidd & Company, said, “We are very pleased with the progress of Numet since our acquisition and Mark’s leadership has been instrumental in continuing to grow the business and to strengthen new and existing customer relationships.  Our financial and management resources are available to him as we work together to continue the company’s growth path.  Mark has been a terrific partner, and we trust and value his leadership and judgment.”

As a 20+ year industry veteran prior to joining Numet, Mr. Roscio held various positions at aerospace companies, including Pratt & Whitney and Electro Methods.  Since joining Numet as an equity partner in 1989, he has helped lead revenue growth, customer diversification and efficiency improvements using lean manufacturing principles, key performance indicators, and a focus on quality and customer service.

Mr. Kokosa joined the Company in 2013 as Vice President of Finance.  Mr. Kokosa also has more than 15 years of finance and operations experience and across a variety of manufacturing and service industries.

About Numet
Numet is a self-release Tier 1 provider of parts and components for jet turbine engines to General Electric Aviation, Pratt & Whitney, and the U.S. Department of Defense.  Additionally, Numet also services customers in the overhaul and repair market for both military and commercial aviation and ground power applications.  The Company currently specializes in complex turned and 5-axis milled components up to 70” in diameter and assemblies made from extreme temperature alloys such as Waspaloy, Titanium, Cobalt, Inconel, Rene 41, Haynes 242, and Haynes 188. Numet  holds ISO-9001 Rev C, AS9100 and Nadcap certifications.

About Kidd & Company
Kidd & Company, LLC is an Old Greenwich, Connecticut-based principal investment firm. KCO traces its roots to 1976 when William Kidd made his first private equity investment. Today, KCO is the private investment arm of the Kidd Family Office engaged in sponsoring private equity transactions in the lower middle market. The firm's focus is on driving superior returns by implementing fundamental strategic and operational improvements to drive above-market growth in revenue and earnings, both organically and through accretive acquisitions. The diverse skill set of its partners allows KCO to bring management, operational, sales and marketing, corporate finance and M&A expertise to bear to substantially increase the total value of its investments.

Contact: Chris Tofalli at Chris Tofalli Public Relations, LLC 914-834-4334

02.4.14

Imaginetics Announces Management Team Promotions

AUBURN, WA, February 4, 2014.  Imaginetics is pleased to announce it has promoted Scott Strong to Chief Executive Officer and Pat Prince to Chief Operating Officer, effective immediately.  Imaginetics is a leading manufacturer of precision metal structural components and assemblies for the aerospace industry, where it enjoys a reputation for superior quality, on-time delivery and customer service.

Scott joined Imaginetics in March 2011 as Vice President & General Manager and was promoted to President in December 2012, coincident with the acquisition of the Company by Kidd & Company and Centerfield Capital.  As a 20+ year industry veteran, prior to joining Imaginetics Scott held positions at numerous other aerospace companies, where he led revenue growth and efficiency improvements using lean manufacturing principles, key performance indicators, and a focus on quality and customer service.

Pat Prince joined the Company in February 2011 as Operations Manager and was most recently the Vice President of Operations since December 2012.  Mr. Prince also has more than 20 years of aerospace manufacturing experience and oversees numerous business functions, including quoting, planning, procurement, outside processing and manufacturing.

 

01.24.13

Kidd & Company, LLC Joins Forces With Centerfield Capital Partners To Acquire Imaginetics, Inc.

Management Team Strengthened Concurrent With Transaction

OLD GREENWICH, CT, January 24, 2013 – Kidd & Company, LLC ("KCO"), a private investment firm focused on the middle market, in collaboration with Centerfield Capital Partners, announced it has acquired Imaginetics, Inc. (“Imaginetics” or the “Company”), a manufacturer of precision metal components and assemblies for the aerospace industry.

Located in Auburn, Washington, Imaginetics has developed a strong track record of growth and an outstanding reputation with its customers, based upon its leading technical capabilities, high quality standards, on-time performance and customer service. Imaginetics has begun to benefit from substantial growing demand in the airframe and aerostructures supply chain, as original equipment manufacturers struggle to secure capacity to allow them to meet aircraft delivery forecasts. The Company’s current customer base includes Boeing Commercial Airplanes, Boeing Defense Services, Hexcel Corporation, Spirit Aerosystems, and Zodiac Aerospace, among others.

“We are impressed by the breadth of the Company’s capabilities, spanning metal fabrication, CNC machining and part-to-part and final assembly, to offer customers a single-vendor solution for a variety of complex manufacturing needs,” said Donald M. Hardie, a Partner at KCO. "We are excited to partner with the management team to build on the terrific foundation they have created and, together, plan to continue to grow Imaginetics by serving the increasing demands of its customer base.”

In connection with the transaction, Imaginetics has promoted Scott Strong to President and Pat Prince to Vice President of Operations, while adding Bob Mozzacavallo as the Company’s new Chief Financial Officer and Michael Cook as the new Vice President of Sales, Marketing and Contracts. Mr. Strong, a 20+ year industry veteran, joined Imaginetics in early 2011 as the Company’s Vice President of Operations. Mr. Strong said, “We are very excited about our new partnership with KCO. There are many growth opportunities for Imaginetics and we are confident in our ability to capitalize on them with the help of our newly expanded management team and the additional resources that come from the KCO team.”

Mr. Prince initially joined the Company in early 2011 and has 19 years of aerospace manufacturing experience, most recently at Compass Aerospace, a division of Synchronous Aerospace. Mr. Mazzacavallo joins Imaginetics from his previous position as CFO of Veridiam, a contract manufacturer of assemblies and precision components machined from high performance metal alloys and medical grade plastics. Mr. Cook brings 28 years of aerospace industry experience to the newly created sales and marketing position.

Tony Castor, a KCO Partner and Board member of Imaginetics, added, “This investment fits perfectly with KCO's investment strategy of partnering with management teams to transform businesses in industries undergoing change in order to build fundamental value. We are very excited about the opportunities within the aerospace sector and are thrilled to be partnering with Scott and the expanded management team to take the company to the next level.”

Centerfield Capital Partners and related parties provided subordinated debt and equity to support the transaction led by KCO. BMO Harris Bank N.A. provided senior debt.

About Kidd & Company
Kidd & Company, LLC is an Old Greenwich, Connecticut-based principal investment firm. KCO traces its roots to 1976 when William Kidd made his first private equity investment. Today, KCO is the private investment arm of the Kidd Family Office engaged in sponsoring private equity transactions in the lower middle market. The firm's focus is on driving superior returns by implementing fundamental strategic and operational improvements to drive above-market growth in revenue and earnings, both organically and through accretive acquisitions. The diverse skill set of its partners allows KCO to bring management, operational, sales and marketing, corporate finance and M&A expertise to bear to substantially increase the total value of its investments. For more information, visit www.kiddcompany.com.

Contact: Chris Tofalli Chris Tofalli Public Relations, LLC 914-834-4334

02.24.2012

Manufacturer will relocate to Orange

ORANGE — A Stratford-based manufacturer of jet engine components is moving into the former Wallach Surgical Products building on Edison Road this spring.

Numet Machining Techniques is moving into 40,600 square feet of light industrial and office space at 235 Edison Road as part of a $7 million sale and lease deal, town officials and a commercial real estate broker said Friday.

A Manhattan-based real estate investment firm, TMC Properties, bought the building for $3.1 million and Numet signed a long-term lease on the property valued at $3.9 million, said Carl Russell, executive vice president of George J. Smith & Son Commercial & Investment Real Estate in Milford.

The building had been vacant for about 18 months, Russell said.

"Right now, given the current state of the economy, that amount of time is pretty typical," he said. "We're starting to see an uptick in activity: Since last summer, we're getting more calls, more property visits, more interest in general."

Russell's observations replicate what Orange Economic Development Corp. Executive Director Paul Grimmer has seen in terms of the vacancy rate for similar light industrial properties in the past year. Vacancy rates have gone from 15 percent to the current level of 6.9 percent, Grimmer said.

"We're definitely moving in the right direction," Grimmer said.

Numet operates out of three facilities with a total 20,000 square feet in Stratford. Company officials estimate they will have fully completed the moved to Orange by the end of May.

The company has 30 employees and expects to hire six more by this June and expects to have 50 employees by the end of 2013.

"We have also started recruiting for experienced machinists to support our growth plans," said Andrew Gale, Numet's president and chief executive officer. "In a competitive market for these skilled workers, this facility will be a major recruiting tool as it is one of the nicest working environments in the entire region."

Gale said Numet will also be purchasing more than $2 million in new equipment during the next year.

10.24.2011

Kidd & Company Recapitalizes Numet Machining Techniques, Inc.

New Chief Executive Officer and Chief Financial Officer Appointed

OLD GREENWCH, Conn., Oct. 24, 2011 /PRNewswire/ -- Kidd & Company, LLC ("KCO"), a leading private investment firm focused on the middle market, announced it has sponsored the recapitalization of Numet Machining Techniques, Inc. ("Numet") in partnership with its two founding shareholders, Mark Roscio and Tony Neto.

Headquartered in Stratford, CT, Numet is a manufacturer of precision machined parts, kits, and assemblies for jet turbine engines for a wide variety of commercial and military aircraft. The Company serves original equipment manufacturers including GE Aircraft Engines and Pratt & Whitney Aircraft, as well as the Department of Defense.

"We are excited to partner with Mark and Tony to build on the terrific foundation they have created over the last 27 years and, together, plan to continue to grow Numet by serving the increasing demands of its customer base," said Donald M. Hardie, a Partner at KCO. "This investment fits perfectly with KCO's investment strategy of partnering with business owners to transform businesses in industries undergoing change in order to build fundamental value."

Numet has also expanded its management team with the appointment of Andrew Gale in the newly created post of Chief Executive Officer and Dennis Nolan in the newly created role of Chief Financial Officer. Mr. Gale joins Numet from his previous position as CEO of Veridiam, a contract manufacturer of assemblies and precision components machined from high performance metal alloys and medical grade plastics. Mr. Nolan was most recently Senior Vice President and General Manager of U.S. Operations for Rockwood Services Corporation.

Mr. Gale stated, "I am excited to be joining Numet at such an opportune time in the aerospace industry. Numet is extremely well-positioned with its customers and is poised to continue growing by expanding its capabilities into more complex parts, components and assemblies."

Mark Roscio, co-founder of Numet, said, "We are very excited about our new partnership with KCO. There are many growth opportunities for Numet and we are confident in our ability to capitalize on them with the help of our newly expanded management team and the additional resources that come from the KCO team."

Tony Castor, a KCO Partner and Chairman of Numet, added, "We are extremely impressed with the franchise that Numet has built with its strong customer relationships and outstanding reputation, and we are thrilled to be partnering with Mark and Tony and the expanded management team to take the company to the next level."

The founders of Numet made substantial co-investments along with KCO in the transaction. Advantage Capital Connecticut Partners provided senior debt financing, while Ironwood Capital and Spring Capital Partners provided subordinated debt.

About Kidd & Company
Kidd & Company, LLC is an Old Greenwich, Connecticut-based principal investment firm. KCO traces its roots to 1976 when William Kidd made his first private equity investment. Today, KCO is the private investment arm of the Kidd Family Office engaged in sponsoring private equity transactions in the lower middle market. The firm's focus is on driving superior returns by implementing fundamental strategic and operational improvements to drive above-market growth in revenue and earnings, both organically and through accretive acquisitions. The diverse skill set of its partners allows KCO to bring management, operational, sales and marketing, corporate finance and M&A expertise to bear to substantially increase the total value of its investments. For more information, visit www.kiddcompany.com.

Contact: Chris Tofalli Chris Tofalli Public Relations, LLC 914-834-4334

SOURCE Kidd & Company, LLC

11.10.2010

Reladyne launched to provide
first-of-its kind equipment reliability products and services platform in U.S. lubrication markets

Company to provide first-of-its kind equipment reliability products and services platform in U.S. lubrication markets

CINCINNATI, OHIO, Nov. 10, 2010 - A rapid transformation is taking place among commercial and industrial businesses that rely on critical manufacturing, transportation and process equipment in the United States, prompting an unprecedented response from four leading lubricant product and services companies. Backed by the international private equity investment firm AEA Investors LP, the four businesses have joined forces to form RelaDyne, Inc. The new company offers an industry-leading comprehensive platform of products and services to fulfill the unmet customer needs of industrial and commercial equipment users, as well as service centers in the automotive sector.

According to RelaDyne Board Chairman Tony Castor, research shows U.S. industry wastes at least $600 billion per year on inefficient and ineffective equipment maintenance. RelaDyne was formed to create the market leader in providing the necessary products and services to help companies achieve "best-in-class" equipment reliability performance levels and a greater return on commercial and industrial equipment assets, which is vital to their business profitability and success. "In addition to the company's established distribution network and customer service capabilities, RelaDyne will distinguish itself from competitors with a focus on value-added services," said RelaDyne Chief Executive Officer Larry Stoddard. These Field Reliability Management (FRM) service offerings are organized as a separate group within the company and provide customers with a suite of comprehensive solutions to improve equipment up-time, production output and bottom-line profitability.

RelaDyne was built upon the solid foundation of four successful businesses - Mid-Town Petroleum, Inc. (Bridgeview, IL); Oil Distributing Company (Cincinnati, OH); The Hurt Company, Inc. (Houston, TX) and Pumpelly Oil Company (Sulphur, LA). Combined, they have more than 225 years of experience in the lubricant products and related equipment reliability services industry. "These RelaDyne founding businesses have been successful because they've always listened to their customers' needs and provided innovative solutions to make their business operations more reliable, productive and profitable," Stoddard said. "This is the solid, customer-centric foundation upon which RelaDyne is built."

Industry Focused Sales, Market Expansion The initial RelaDyne sales, distribution and services platform is strategically located within the central corridor of the United States, a territory that accounts for approximately 50 percent of the U.S. lubricant market. RelaDyne operates 12 distribution centers in eight states within this corridor throughout the Midwest and Gulf Coast regions, and is expected to deliver more than 16 million gallons of lubricants in 2010.

RelaDyne is investing in industry-dedicated sales professionals, field technicians, reliability solutions specialists and associate training, all of which will provide new career opportunities for existing employees, according to Stoddard. There also are plans to eventually hire additional personnel to service its customer base, which is expected to grow significantly in the coming years, he said.

"One of the most attractive features of RelaDyne is that each organization brings a distinctive value proposition and core competency to customers," Stoddard said. Mid-Town Petroleum excels in industrial sales and marketing, as well as the manufacturing of custom-blended specialty niche lubricants; The Hurt Company has built unparalleled expertise in FRM services and will be championing this offering at RelaDyne; Oil Distributing Company brings nearly three decades of sales and marketing experience in the automotive industry; and Pumpelly Oil Company has unmatched expertise in the commercial market and is a leading seller of diesel exhaust fluid (DEF), used to lower harmful diesel emissions in new truck engines. The owners of each of the four founding businesses are assuming leadership roles at RelaDyne best suited to their skills and experience.

"I am excited about the potential to work with such a terrific group of entrepreneurs and help them take their successful platforms to the next level," continued Stoddard, who brings to RelaDyne significant experience in growing distribution companies.

Stoddard started his career with Ferguson Enterprises Inc. During his 27-year tenure, he was a vital part of Ferguson's growth which rose from $140 million to $11 billion in distribution of plumbing and construction-related products. During his career, he ultimately became COO of Ferguson's parent, Wolseley, which at the time was a $34 billion distributor of building products. He also has served as CEO of Bradco Supply, a leading roofing supply company in North America, and currently he is chairman of Crescent Electric Supply.

Jeff Hart, executive vice president of business development, added that the RelaDyne management team and its sponsors are committed to growing the company through a variety of initiatives, including exploring acquisitions in the distribution channel to further expand in targeted geographies and service-related businesses where there is opportunity to leverage RelaDyne's comprehensive business model.

Field Reliability Management According to Jay Hurt, executive vice president for RelaDyne's FRM services platform, its rollout is the first of its kind in the industrial and commercial markets. He said while most other lubricant distributors only distribute products, some try to provide training or consulting, but they cannot offer the scale nor breadth of solutions needed. With its FRM capabilities, RelaDyne certified lubricant technicians work in the field at customer locations implementing innovative processes and services that keep plants, vehicles or machinery performing reliably, Hurt said.

The FRM platform includes such services as contamination control, assessing storage and use of lubricants, flushing and filtering lubricants for extended life, plant turnarounds, oiler outsourcing, as well as designing and implementing lubrication programs that create measurable results for greater uptime and cost savings.

"FRM will appeal to companies that in the past have lost valuable production time due to equipment failures, as well as organizations trying to increase profit margins by using fewer products and improving their efficiency," Hurt said. "This includes companies involved in process manufacturing, utilities, food and beverage processing plants, mining equipment and commercial fleets, to name a few."

Hurt said one Texas oil refinery documented more than $1 million in cost savings over four years because of proactive steps recommended by his company. "Our customer was able to reduce equipment failures by 25 percent using only a piece of what we now call FRM," he said.

Stoddard said, "This is the first time that a one-stop lubricant product and equipment-reliability services provider has been available to customers in this industry. RelaDyne makes it easier for our customers to acquire lubrication products and services. Working with us, there is no longer a need to source from multiple distributors."

 

About RelaDyne RelaDyne, Inc., headquartered in Cincinnati, Ohio, is one of the largest providers of integrated equipment reliability management products and services for industrial, commercial, transportation and automotive businesses in the United States. Four industry leaders--Mid-Town Petroleum, Inc. (Bridgeview, IL), Oil Distributing Company (Cincinnati, OH), The Hurt Company, Inc. (Houston, TX) and Pumpelly Oil Company (Sulphur, LA) - joined to form RelaDyne on November 8, 2010. The company's innovative Field Reliability Management (FRM) platform of services is designed to enhance the operations of companies involved in process manufacturing, utilities, food and beverage processing, mining equipment and commercial fleets. RelaDyne also benefits from an exclusive relationship with Mansfield Oil and the support of its business building partner, Kidd & Company, who originally conceived the RelaDyne concept, and AEA Investors LP, which manages funds worth approximately $5 billion of invested and committed capital. For more information, visit www.RelaDyne.com.

About AEA Investors AEA is one of the most experienced international private equity investment firms, founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA's active investors include a network of more than 70 highly successful business executives, industrial families and influential institutional investors. The firm manages funds that have approximately $5 billion of invested and committed capital. AEA has continued the operational and industrial orientation of its founders as it seeks investments in well-positioned businesses which can benefit from transformational capital to improve operationally, strategically and financially. This business building focus has allowed AEA to invest successfully over many economic cycles.

About Kidd & Company Kidd & Company, LLC (KCO), is a Greenwich, CT based principal investment firm. Unlike most private equity firms, KCO's investment model proactively identifies emerging or existing unmet customer needs. KCO invests its time and money to conduct the necessary research and to develop a transformational business strategy that provides a differentiated solution for these customer needs. Through this process, KCO's goal is to create market-defining businesses that transform the basis of competition in an industry segment. This concentrated effort enables KCO to prove the value of the business idea before an investment is made. Through this work, the KCO investment model is designed to eliminate almost all of the risks associated with market acceptance of the strategy, thereby leaving execution risk as the primary barrier to substantial equity appreciation.

Contact: Chris Tofalli Chris Tofalli Public Relations, LLC 914-834-4334

SOURCE Kidd & Company, LLC

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