Private equity firm Resilience Capital Partners, of Cleveland, Ohio has purchased the Satellite Communications Division of Andrew Corporation. Andrew Corporation, the CommScope subsidiary, has completed the sale of its Satellite Communications business to Resilience Capital Partners, a Cleveland, Ohio-based private equity firm.
The business will be operated as a newly-formed, independent company called ASC Signal Corporation but will continue operations from its current major facilities in the USA, Canada , UK, Germany and other select regional locations. Andrew will own a minority 17.9% share of ASC Signal and provide certain transition support services to the new company. At closing, Andrew received US$8.5 million in cash and a US$2.5 million note from ASC Signal that will mature in 39 months. In addition, Andrew expects to receive an additional US$2.5 million note upon completion of certain manufacturing asset transfers to an ASC Signal facility. The company also may receive up to an additional US$25 million in cash after three years, based upon ASC Signal ’s achievement of certain financial targets.
ASC Signal will design and build products that cover C, Ku, K, X, and the emerging Ka band frequency platforms. Products include type-approved earth station antenna hubs and gateways for broadband and broadcast; complete VSAT outdoor units (antennas, transceiver electronics and installation mounts) for consumer broadband and enterprise networks providing the “last mile” connectivity to customers for virtual private networks, Internet access and rural telecommunications; vehicle mounted communications-on-the-pause antenna solutions for disaster management and oil/gas exploration; tactical MilSatCom, air traffic control and weather radar, high frequency and troposcatter antenna systems for government and defence applications; direct-to-home antennas and electronics for home satellite television entertainment systems; and complete installation, testing, and value-added services.
* Resilience Capital Partners is a private equity firm with offices in Cleveland Detroit, and is focused on investing in underperforming, turnaround situations and non-core divisions of larger corporations. Resilience’s investment strategy is to acquire middle-market companies that have solid fundamental business prospects, but have suffered from a cyclical industry downturn, are under-capitalised, or have less than adequate management resources. Resilience typically acquires companies with revenues of US$25 million to US$250 million. Since its inception in 2001, Resilience has acquired 15 companies with combined revenues in excess of US$1 billion.
