Livingstone strikes deal for missile defense & rocket specialist

Advises Beranek on sale to J&E Precision Tool, an LFM Capital portfolio company
  • apr. 2021
  • Industrial
  • M&A: Sell-Side
  • US

Livingstone is pleased to announce the sale of Beranek, LLC (“Beranek” or the “Company”), a precision manufacturer of technical components for the aerospace & defense, and space exploration markets, to J&E Precision Tool (“J&E”), a portfolio company of LFM Capital (“LFM”). Livingstone was the exclusive financial advisor to Beranek. Terms were not disclosed.

Founded in 1978 and based in Torrance, California, Beranek is a second-generation family business serving blue-chip defense prime contractors and global aerospace customers that require high cost-of-failure parts for complex systems, manufactured to exacting specifications. The Company’s components are utilized in military aerospace, space rocket engines & firing systems, and commercial aircraft. Boasting complex manufacturing certifications, entrenched positions with key customers, and decades of highly technical experience, the Company represents a critical link in the global A&D supply chain.

George Beranek, President of Beranek, commented, “Livingstone provided flawless transaction execution advising our family throughout the sale process. They provided first-class representation and managed the process every step of the way, ultimately connecting us with a high-caliber set of interested parties. We are thrilled to be partnering with J&E to carry on Beranek’s legacy.”

We congratulate George and his team on the strong business they have built with Beranek,” stated Sean Holly, CEO of J&E. “We welcome the Beranek team to J&E. Together, we will expand our precision machining capabilities, west coast presence, and service capabilities.

Karl Freimuth, Partner at Livingstone, commented, “The Beranek family built a valuable enterprise specializing in the missile defense, military aircraft, and space exploration markets. The Company was a coveted asset and represents another successful transaction for Livingstone’s global industrial practice. We expect demand for high-quality industrial technology businesses to remain incredibly robust for the balance of 2021.”

The Beranek transaction highlights Livingstone’s commitment to delivering outstanding outcomes to family- and entrepreneur-owned clients. It was a pleasure working with George and his family, and we congratulate them on their next chapter with an excellent partner in J&E,” stated Patrick Hopkins, Director at Livingstone.

Founded in 1979 and based in Southampton, Massachusetts, J&E is a leading precision manufacturer of components for the aerospace and defense industry. It operates successfully in commercial & defense aviation end markets and other high-precision industries such as microwave equipment and electro-optic. J&E’s products are used on a wide variety of aerospace & defense platforms and include racking components, piston ejection systems, and pneumatic deck assemblies.

Based in Nashville, Tennessee, LFM is a private equity firm led by experienced and successful Fortune 50 global executive managers and private equity professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks, and a successful track record in lower middle-market investing. LFM targets lead or control investments in U.S.-based lower middle-market manufacturing and industrial services companies. Its mission is to partner with portfolio company management to develop and build world-class operations through a combination of manufacturing and operations excellence and targeted growth and expansion strategies.

Beranek is Livingstone’s 166th transaction completed since 2018, and the 64th global industrial transaction completed in the same timeframe following the sales of Lesman to Kele, LT Harnett to A&R, Cummins Allison to Crane, Capital Southwest’s portfolio company, SpotSee, to Harbour Group, Royal Truck Body to Shyft Group, and Artistic Carton to Graphic Packaging.

Guzman Law Group, PC served as legal counsel while Blythe Global Advisors, LLC provided transaction-related accounting services to Beranek. Bass, Berry & Sims PLC served as legal counsel, and LBMC, PC provided transaction-related accounting services to J&E.

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