Gridiron Capital has acquired H.M. Dunn Company and Nex-Tech Aerospace

Lincoln International (“Lincoln”), a leading global mid-market investment bank, has announced the successful completion of the financing of Gridiron Capital, LLC’s (“Gridiron”) acquisition of H.M. Dunn Company (“HMD” or the “Company”), as well as Gridiron’s acquisition of Nex-Tech Aerospace (“Nex-Tech”). Going forward, Nex-Tech will operate as a division of HMD. HMD and Nex-Tech are leading manufacturers of precision machined structural aerospace components, assemblies, and kits for military, commercial, and business jet aviation end-markets.

Lincoln  acted as exclusive financial advisor to Gridiron. The financing consisted of a senior secured revolving credit facility and term loan. Proceeds from the transaction were used to finance the acquisition of HMD and Nex-Tech, pay fees and expenses associated with the acquisitions and provide for HMD’s and Nex-Tech’s ongoing working capital needs. The credit facilities were provided by a consortium of lenders led by Fifth Third Bank, with BBVA Compass and U.S. Bank participating.

As Gridiron’s exclusive financial advisor, Lincoln worked closely with Gridiron and HMD’s senior management team on all aspects of the transaction, helping to structure, arrange and negotiate the financing. Geoff Spillane, a Managing Director at Gridiron, stated, “We were very pleased with Lincoln’s process. The team got up to speed on the business very quickly, prepared compelling offering materials that streamlined lenders’ underwriting processes and efficiently approached a wide universe of senior capital providers. They created healthy competition among lenders that ultimately resulted in very favorable financing terms. Oftentimes, it is challenging to optimize a financing package under the constraints of a time-sensitive acquisition transaction; however, we feel we obtained excellent financing terms while also meeting our deadlines.”

Bob Horak, Managing Director and co-head of Lincoln’s Debt Advisory Group, added, “The HMD transaction is an excellent example of how outsourcing an acquisition financing process to Lincoln can significantly improve the terms and conditions obtained from lenders through a competitive process. Additionally, by streamlining certain steps in the financing process, Lincoln placed the capital in an expedited manner, taking only eight weeks from approaching lenders to closing the financing and the HMD acquisition. This accelerated process ensured Gridiron was able to meet its transaction timeline.”

About H.M. Dunn Company

Founded in 1975 and headquartered near Dallas, Texas, H.M. Dunn Company is an ISO 9001:2008 and AS9100 Rev. B certified manufacturer of high-precision, complex machined components, assemblies and kits used by original equipment manufacturers (“OEM”s) and Tier 1 suppliers to OEMs in the defense, commercial and civil sectors of the aerospace and defense industry. With its highly-advanced machining equipment and unmatched design and machining expertise, HMD is uniquely positioned to provide value-added complex parts across a wide range of difficult-to-machine metals, including titanium, aluminum and stainless steel. For more information, visit HMD’s website at www.hmdunn.com.

About Nex-Tech Aerospace

Nex-Tech Aerospace is an ISO 9001:2000 and AS9100C registered manufacturer of precision machined structural components and complex assemblies for the aerospace industry. Headquartered in Wichita, Kansas, with additional facilities in St. Louis, Missouri and Mexicali, Mexico, Nex-Tech currently operates 160,000 sq. ft. of aggregate facility capacity. Nex-Tech serves a diverse set of commercial, business jet and military aerospace customers including Boeing, Gulfstream and Lockheed Martin. For more information, visit Nex-Tech’s website at www.nex-techaerospace.com.

About Gridiron Capital, LLC

Gridiron Capital, LLC, headquartered in New Canaan, Connecticut, is a private equity firm focused on creating value by acquiring and building middle market manufacturing, service and specialty consumer companies in the United States and Canada. The firm’s principals have historically achieved superior investment returns by employing a combination of strategic, operating and financial experience to provide portfolio companies with competitive advantages. Gridiron’s principals work closely with management teams to develop strategies for portfolio companies, as well as providing resources to execute business plans and build industry-leading companies. Additional information is available on the firm’s website at www.gridironcapital.com.

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