Compass Partners Acquires PRL, Inc.

October 26, 2020 

STAMFORD, CT | CORNWALL, PA | SOUTH WINDHAM, CT 

Compass Partners Capital LLC (“Compass”), a Stamford-based investment firm, is pleased to announce the acquisition of PRL, Inc. (“PRL”), a leading manufacturer of high-tech alloy castingsPRL will be combined with Micro Precision Inc. (“MPI”), a Compass portfolio company, to create best-in-class enterprise serving the United States Navynuclear power, and railroad industries. Vice Admiral John Morgan (USN, ret.), currently President & CEO of MPI, will serve as the Chief Executive Officer of the combined platform 

A former Deputy Chief of Naval Operations, Admiral Morgan stated, “We have no greater priority than our nation, our customers, and our employees. This combination demonstrates our steadfast commitment to all three with a concerted focus on the US submarine programs. We are building a trusted one-stop shop for critical components, with an unwavering dedication to quality and on-time delivery. These companies can and will grow as we serve the top priority programs in the Pentagon.” Headquartered in South Windham, CT, Micro Precision is a tier-one, Level 1/SUBSAFE supplier of critical components and assemblies for the US Navy’s Virginia and Columbia class submarines.  

Family owned since 1972, PRL is headquartered in Cornwall, PA and comprised of PRL Industries, Regal Cast, and Lebanon Tool Companyvertically-integrated enterprise, PRL and its subsidiaries have capabilities to pour a wide variety of ferrous and nonferrous alloy castings, conduct conventional to close tolerance machining on small to large components, and provide in-house non-destructive examination and upgrading services. Collectively, PRL’s team prides themselves on their decades of supplying high quality product and work to the US Navy and nuclear power industries. 

Janis Herschkowitz, PRL’s President & CEO said, “The acquisition by MPI will not only provide additional resources to our talented workforce, but increases PRL’s visibility with the nuclear Navy, and will be instrumental in growing PRL to the next level. PRL is ecstatic to welcome Admiral John Morgan as the new CEO, as his leadership skills and values are second to none.” 

“PRL’s employees have always been proud of the significant role we’ve played in our nation’s defense.  To continue to do that with our partners at Compass gives us opportunity to expand and grow our role in providing the best Navy in the world with more diverse components,” added Patricia Herschkowitz, a PRL, Inc. co-owner and Director of Public Relations, Government Affairs & Advertising.  “I think our father would be proud of the direction we are headed.”    

James Waters, Chief of Staff at Compass who led the deal team stated, “We are thankful to both Jan and Pat Herschkowitz and applaud them for building such unique company. We are humbled to carry on their legacy, believe in Admiral Morgan, and are eager to make a positive impact for our country and the communities of Windham County, CT and Lebanon County, PA. Our patriotic investors deserve tremendous credit for making all of this possible. 

Bigelow LLC represented PRL in the transaction. PRL was also advised by Blank Rome LLPCompass was advised by Willkie Farr & Gallagher LLPFiondellaMilone and LaSaracina LLP, and Trivista Business Group. 

 

About PRL Inc. 

Headquartered in Cornwall, Pennsylvania, PRL is comprised of PRL Industries, Inc., Regal Cast, Inc., and LTC, Inc.. PRL Industries provides customers with in-house poured castings, non-destructive examination and upgrading services on ferrous and nonferrous castings, as well as machining.   

About Micro Precision LLC 

Founded in 1981 and located in South Windham, CT, Micro Precision is a prime contractor supplying critical parts and mechanical assemblies to major submarine contractors, as well as the US Department of Defense and other government agencies. 

About Compass 

Compass Partners Capital LLC is a private investment firm located in Stamford, CT. An independent sponsor, Compass focuses on defense and aerospace-related investments that are aligned with US national security strategy. 

About Bigelow LLC 

Originally established in 1935, Bigelow LLC is widely known as the M&A Advisory Boutique that deals exclusively with private Entrepreneur Owner Managers. Bigelow has a reputation for having a unique understanding of the special requirements of the owner-managed, entrepreneurial operating company in building and ultimately capturing Enterprise Value. 

 

Investor Group Completes Acquisition of Precinmac Precision Machining

Transaction to Support Precision Machining Company’s Next Chapter of Growth

April 02, 2020

NEW YORK & BOSTON & STAMFORD, Conn.–(BUSINESS WIRE)–Pine Island Capital Partners, LLC, and Bain Capital Credit, LP today announced the acquisition of Precinmac Precision Machining, a diversified manufacturer of high-precision machined components and assemblies for companies in the aerospace & defense, semiconductor, and general industrials sectors. Compass Partners Capital helped arrange the transaction and is investing alongside Pine Island and Bain Capital. Financial terms of the private transaction were not disclosed.

Precinmac has four divisions – Maine Machine Products Company, Hoppe Technologies, Trimaster Manufacturing, and HPG. The Company specializes in precision milling and turning, multi-axis machining, molding and grinding, close tolerance fabrication, and complex geometries. Precinmac is a critical supplier to prime contractors in the aerospace, defense, semiconductor, automation, and other sectors that rely on ultra-high precision manufacturing capabilities and expertise. From its four integrated manufacturing locations in the U.S. and Canada, the Company is able to provide broad capabilities and expertise to these demanding industries.

“Precinmac has a long history of delivering value to customers through design assistance, precision manufacturing, and assembly, and we see an opportunity to further grow the business among aerospace, defense, semiconductor, and industrial companies,” said new Board Chairman and Pine Island Capital Partner, Admiral Mike Mullen. “We look forward to a constructive partnership with management as we continue to grow the business while serving Precinmac’s customers and strengthening the supply chain for critical industries.”

“With the support of Pine Island, Bain Capital, and Compass, we are excited to continue to expand the business by assisting high requirements customers who need impeccable quality, additional capacity, and flawless service,” said Precinmac’s CEO, Eric Wisnefsky.

 Houlihan Lokey, Inc. and Alantra served as financial advisors to the seller, GenNx360 Capital Partners. Legal advisors include Winston & Strawn, LLP to GenNx360, Willkie Farr & Gallagher, LLP to Compass, Paul Hastings LLP to Pine Island, and Davis Polk & Wardwell, LLP to Bain Capital.

About Precinmac Precision Machining

Precinmac (https://www.precinmac.com/) is a leading diversified manufacturer of high-tolerance precision machined components and assemblies. Precinmac has four divisions in the United States and Canada – Maine Machine Products Company, Hoppe Technologies, Trimaster Manufacturing, and HPG.

About Pine Island Capital Partners, LLC

Pine Island Capital Partners (https://pineislandcp.com/) is a U.S. based private equity firm that has combined an experienced investment team with a deeply-connected and accomplished partner group of former senior government and military officials. The extensive leadership, investing, and networking expertise of its partners enables the firm to make a significant improvement to its portfolio companies’ operations and business expansion.

About Bain Capital Credit, LP

Bain Capital Credit (www.baincapitalcredit.com) is a leading global credit specialist with approximately $41 billion in assets under management. Bain Capital Credit invests up and down the capital structure and across the spectrum of credit strategies, including leveraged loans, high-yield bonds, distressed debt, private lending, structured products, non-performing loans and equities. Its team of more than 200 professionals creates value through rigorous, independent analysis of thousands of corporate issuers around the world. In addition to credit, Bain Capital invests across asset classes including private equity, public equity, and venture capital, and leverages the firm’s shared platform to capture opportunities in strategic areas of focus.

About Compass Partners Capital, LLC

Compass Partners Capital (www.compasspartners.com) is a private investment firm focused on helping companies seize 21st century opportunities. Compass invests in high-priority aerospace, defense, and industrial platforms to create value for investors through active management. The Compass team’s multi-disciplinary backgrounds of deep investment and industry experience complement a core ethos centered on trust and collaboration, passion for excellence, and an enduring belief in humility and adaptability. As patriotic investors, Compass partners with owners, investors, and management teams to drive growth, enhance profitability, and strengthen U.S. national security.

Contacts 

Precinmac Precision Machining
Eric Wisnefsky
413-658-7227
ewisnefsky@hoppetech.com

Pine Island Capital Partners
Philip Cooper
(781) 325-6154
pcooper@pineislandcp.com
 

Bain Capital Credit
Scott Lessne
Stanton
(646) 502-3569
slessne@stantonprm.com 

Compass Partners Capital
Torey Saager
(212) 702-8663
torey.saager@compasspartners.com

 

 

Micro Precision LLC Names Vice Admiral John Morgan (Ret.) President and Chief Executive Officer

November 12, 2019

Stamford, CT – Compass Partners Capital LLC (“Compass”) announced today that Vice Admiral John Morgan (Ret.), currently a Director of Micro Precision LLC (“MPI”), has been selected as MPI’s new President and Chief Executive Officer (“CEO”).  Vice Admiral Morgan assumes his new role on November 12, 2019.  He succeeds Bob Mongell who has been CEO of MPI since 1989 and has built the company into a critical supplier of components for the US submarine program.

“I am honored to have been selected as MPI’s next President and CEO.  It is a privilege to be part of an organization that is a vital supplier in America’s Submarine Industrial Base and plays a significant role in our national defense,” said Vice Admiral Morgan.  He continued, “MPI has a significant opportunity to leverage its strong reputation for zero defect on-time delivery, and I look forward to leading the company through an unprecedented period of expansion as the United States reconstitutes its submarine force.”

Vice Admiral Morgan previously served as Chairman and CEO of Nobles Worldwide, a leading global provider of high-quality ammunition systems, until its recent sale.  A 36-year Navy veteran, Vice Admiral Morgan was a key advisor to the Secretary of the Navy, Chief of Naval Operations and the Chairman of the Joint Chiefs of Staff.  In addition, he commanded the USS Enterprise carrier battle group, which played a critical role following the attacks against the US on 9/11.  For his leadership in combat, Morgan received the Bronze Star.

“We are thrilled to appoint Vice Admiral Morgan as CEO of MPI,” said James Waters, lead Director of the Board.  He added, “John’s leadership combined with his knowledge and understanding of the US Navy will be a substantial asset for MPI and its customers.  We look forward to John stewarding the company’s growth in the years ahead.  We would also like to thank Bob Mongell for his leadership and dedication to the company over the past three decades.  He leaves MPI in a strong position to grow by serving its customers.”

About Micro Precision LLC

Founded in 1981 and located in South Windham, CT, Micro Precision is a prime contractor supplying critical parts and mechanical assemblies to major submarine contractors, as well as the US Department of Defense and other government agencies.

About Compass

Compass Partners Capital LLC is a family-owned investment firm located in Stamford, CT.  Compass focuses on defense and aerospace-related investments.

 

 

Compass Partners Acquires Micro Precision

July 29, 2019

STAMFORD, CT

Compass Partners Capital LLC (“Compass”), a Stamford-based investment firm, is pleased to announce it has completed the acquisition of Micro Precision, LLC (“MPI” or “the Company”), a critical supplier to the US submarine program.

Founded in 1981, Micro Precision is a prime contractor supplying critical parts and mechanical assemblies to major submarine contractors, as well as the U.S. Department of Defense and other government agencies.  In recent years, Micro Precision’s experienced management team, led by CEO Robert Mongell, has leveraged its Level 1/SUBSAFE and Navy Nuclear qualification and strong reputation for zero defect on-time delivery to significantly expand its scope of business and manufacturing capabilities.

Mongell and his employees are enthusiastic about the transaction: “MPI is ready to turn the page and focus on growing our company to play an even larger role in the all-important US submarine build. In Compass, we now have partners whose industry experience and contacts represent the perfect formula to support our customers and expand our efforts to meet the exciting market opportunities ahead.”   

Phil Cagnassola, a private investor who will serve as an independent director on MPI’s Board, lauded Compass for its dogged pursuit of the transaction: “If Compass demonstrates even half the determination it showed in getting this deal done, MPI will be a massive beneficiary. We’re going to leverage MPI’s human and financial capital to ensure its customers know they can always count on MPI to get the job done.”  

Radek Kozlowski, a Managing Director who led the Compass deal team stated, “We are extremely thankful for all the support it took to get here and particularly for the investors who helped us get this done. We see a unique opportunity to create significant value for investors, the State of Connecticut, and the Nation.”  

Compass’ Chief of Staff, James Waters, stated “In the SEAL Teams, we have a simple but important saying: ‘The only easy day is yesterday.’ Let’s get to work.” 

 

Compass Partners Announces New Board for Micro Precision LLC

July 18, 2019

STAMFORD, CT

Compass Partners Capital (“Compass”) is pleased to announce the appointment of a high caliber Board of Directors to help lead Micro Precision LLC (“MPI”) during an important time for the United States submarines program. MPI is a tier-one Level 1/Sub-Safe supplier of critical components for the U.S. Navy’s Virginia Class and Columbia Class submarines.

“As active investors, Compass believes the combination of a strong management team with a highly credible Board will help ensure that MPI is well-positioned to serve its customers and the United States Navy,” said James Waters, Compass’ Chief of Staff and former US Navy SEAL Platoon Commander, who will serve as a Compass director on the Board. “We think MPI can serve as a model for advanced manufacturing in important pockets of the country like Connecticut. Each of our Board members brings an extremely relevant skill set that will be a value-added resource for management and help MPI scale its strong reputation for zero-defect, on-time delivery of critical components.”

Radek Kozlowski, a Compass Managing Director and a mechanical engineer with extensive M&A, management, and technical experience with manufacturing and industrial companies, said: “Compass is excited to partner with these esteemed directors. With the Virginia Class submarine Block V and Columbia Class submarine procurement beginning soon, MPI is positioned for growth and Compass will work to support the company through what is expected to be an unprecedented period of expansion. We believe MPI has tremendous potential to solve a number of the supply chain problems that the prime contractors, the US Navy, and the Pentagon are working through.”

The Board will also include:

  • Vice Admiral John Morgan (Ret.), the Chairman and former CEO of Nobles Worldwide, a 36-year Navy veteran who served as a key advisor to the Secretary of the Navy, Chief of Naval Operations and Chairman of the Joint Chiefs of Staff. 
  • Walker Stapleton, the President and CEO of real estate investment firm Sonoma West Holdings, former two-term Colorado State Treasurer, and the 2018 Republican nominee for Governor of Colorado. 
  • Paul Finnegan, the founder of North Manitou Partners, a lower middle market investment firm. 
  • Phil Cagnassola, the founder of Frasier Capital LLC, a firm exclusively focused on growing “little leaders” by leveraging human and financial capital, a 20-year veteran of the private equity industry, former partner at Hamilton Robinson, and director/executive for numerous private-equity owned companies. 
  • Bob Mongell, the founder & CEO of MPI. 

Vice Admiral Morgan stated: “In this new era of great power competition and the potential spread of nuclear weapons, strategic deterrence is of utmost importance for our national defense.  MPI is a vital supplier in America’s Submarine Industrial Base that produces the nation’s nuclear deterrence.  The next generation of our Navy’s submarine force, to include nuclear powered ballistic missile submarines, will continue to rely on MPI.”

Finnegan stated: “We believe long-term, flexible capital is often a key ingredient in supporting growth of companies like MPI.” Stapleton added: “As patriotic investors, we feel there is no better place to invest than in the long term national security of the United States.”

The transaction will close in late July.

Compass Partners to Purchase Micro Precision LLC

June 27, 2019

STAMFORD, CT and SOUTH WINDHAM, CT

Compass Partners Capital LLC (“Compass”) is pleased to announce the signing of a definitive merger agreement to purchase Micro Precision LLC (“MPI”) of South Windham, CT.  The Company is a tier-one Level 1/Sub-Safe supplier of critical components for the U.S. Navy’s Virginia and Columbia class submarines. 

Stephen Waters, Compass’ Managing Partner said: “MPI serves an important role in supplying critical components for our Navy’s submarine force.  Compass is excited to partner with the management team at MPI to support its future growth.” He continued: “Compass and its partners represent a new class of patriotic investors who are deeply committed to the national security of the United States and the vitality of the submarine supplier base in Connecticut and elsewhere around the nation.”

Bob Mongell, MPI’s co-founder and Chief Executive Officer added: “Our team and Compass look forward to supporting Electric Boat and Newport News in the rebuilding and expansion of the US submarine fleet – the highest priority in America’s defense budget.”

Compass, located in Stamford, CT, focuses on defense and aerospace-related investments.