Transaction solidifies the formation of a new industry leader providing highly engineered products to the aerospace and defense markets
Charlesbank Capital Partners ("Charlesbank"), a middle-market private investment firm, today announced that it has, through new aerospace manufacturing holding company Velocity One, successfully closed on its acquisition of EMCORE Corporation (NASDAQ:EMKR) ("EMCORE"), a provider of specialized inertial navigation solutions to the aerospace and defense ("A&D") industry. The transaction was first announced on November 8, 2024, following unanimous approval by the EMCORE board of directors.
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Headquartered in Fairfield, New Jersey, Velocity One (or the "Company") brings together EMCORE with Cartridge Actuated Devices, Inc. ("CAD") and Aerosphere Power, positioning itself as an industry leader with operating units capable of designing, manufacturing, and supporting a wide range of critical products including navigational solutions, energetic devices, and power system solutions for the aerospace and defense end-markets. Together, these leading businesses comprise approximately 250 employees across five facilities. Building on these capabilities, the Company will focus on partnering with leading component manufacturers as part of a strategy to build a market-leading aerospace and defense platform.
John Borduin, an industry veteran with 20 years' experience in senior leadership positions at prominent aerospace and defense companies including CAD, Avionic Instruments, Safran, and GE Aviation, will lead Velocity One as Chief Executive Officer. Brandon White, Managing Director and Co-Head – Flagship, at Charlesbank, has joined the Board of Directors of the combined company, along with Senior Vice President Samuel Bekenstein and Vice President Karan Talreja.
"The creation of Velocity One follows a multi-year thematic pursuit in the aerospace sector for Charlesbank. We are thrilled to complete this transformative acquisition, which we believe will solidify the formation of a new industry leader providing proprietary, highly engineered products to the aerospace and defense sectors," said Mr. White. "The three companies under the wing of Velocity One share a reputation for delivering high-quality products and a clear vision to create value organically and through M&A. We are excited to partner with this driven, highly skilled management team to propel future growth."
"The addition of EMCORE to our portfolio represents an exciting opportunity for us to accelerate our growth together as Velocity One," said CEO Mr. Borduin. "With the support of Charlesbank, we look forward to continuing to scale our business, capitalize on an attractive M&A pipeline and unlock new opportunities in the aerospace and defense sectors."
As part of the transaction, Launch Point Partners LLC ("Launch Point"), a private investment firm specializing in the A&D industry, will become a strategic co-investor in Velocity One alongside Charlesbank.
About Velocity One
As a newly formed aerospace and defense platform, Velocity One brings together EMCORE, Cartridge Actuated Devices, and Aerosphere Power, all committed to delivering cutting-edge solutions and exceptional performance. This strategic combination positions Velocity One as a global leader in aerospace and defense, enabling the company to capture new opportunities, strengthen its market position, and expand its shared customer base. Visit Velocity One at www.velocity-one.com.
About Charlesbank Capital Partners
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with approximately $19 billion of assets under management as of 9/30/24. Charlesbank focuses on management-led buyouts, growth capital financings, opportunistic credit, and technology investments. The firm seeks to invest in companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.
About EMCORE
EMCORE Corporation is a leading provider of inertial navigation products for the aerospace and defense markets. EMCORE leverages industry-leading Photonic Integrated Chip (PIC), Quartz MEMS, and Lithium Niobate chip-level technology to deliver state-of-the-art component and system-level products across our end-market applications. EMCORE has vertically-integrated manufacturing capability at its facilities in Budd Lake, NJ, Concord, CA, and Tinley Park, IL. EMCORE's manufacturing facilities all maintain ISO 9001 quality management certification, and the company is AS9100 aerospace quality certified at its facilities in Budd Lake and Concord. For further information about EMCORE, please visit https://www.EMCORE.com.
About Launch Point
Launch Point Partners LLC is a private investment firm specializing in the aerospace and defense sector. As experienced owner-operators, Launch Point works closely with management teams to drive long-term value creation through operational expertise and strategic expansion. For more information, visit www.launch-point.com.
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Media
Charlesbank Capital Partners
Alexa Ottenstein / Peter Gavaris
[email protected]
For Velocity One:
Julia McDowell
[email protected]
For EMCORE:
Tom Minichiello, Chief Financial Officer
[email protected]