HDT Global (“HDT” or the “Company”), the leading manufacturer of highly engineered, mission-capable infrastructure solutions across defense, aerospace and government markets, announced today that an affiliate of Nexus Capital Management LP (“Nexus”) has signed a definitive agreement to acquire the business from Charlesbank Capital Partners (“Charlesbank”).
Founded in 1937, HDT is known for its rapidly deployable and state-of-the-art solutions to meet critical military and emergency needs. Primarily serving the US military and its allies, HDT designs and manufactures a range of highly engineered and integrated expeditionary products and solutions, including: tactical shelters, environmental control units, chemical/biological/ radiological/nuclear (CBRN) filtration and protection systems, heaters and power generators, military vehicles, perimeter protection systems and robotics.
“Together with HDT’s talented management team, we were able to execute on key elements of our investment thesis, including transforming HDT’s go-to-market approach and broadening its reach and capabilities to new customers, geographies and markets through organic growth and five key acquisitions,” said Sam Bartlett, Managing Director at Charlesbank. “The Company has strong brand and market positioning, and we are confident it will enjoy continued success under its new ownership.”
“We are excited to acquire HDT, a world leader in the design, engineering and manufacturing of proven solutions for extreme environments. Together, we will ensure that customers across the military and commercial sectors will continue to receive the best quality and service for their critical needs,” said Daniel Flesh, Partner at Nexus. Nexus Managing Director Evan Glucoft added, “We look forward to working with HDT’s management and all employees to build on this great platform and to leverage their commitment to technology, innovation and new product development.”
“We appreciate Charlesbank’s trust and support of our vision throughout their ownership,” said Jim Stephens, CEO of HDT. “Now we look forward to our next chapter with Nexus. HDT is well-positioned to build on our history of delivering industry-leading, mission-focused solutions, and with Nexus we will remain focused on excellence and improvement across operations, innovation and customer service.”
The transaction is expected to close at the end of Q2, subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed.
Houlihan Lokey served as sole financial advisor to HDT. Lazard served as sole financial advisor to Charlesbank. Ropes & Gray is serving as the Company’s legal advisor.
RBC Capital Markets, Barclays and Société Générale are serving as financial advisors and providing debt financing commitments to Nexus. Munger, Tolles & Olson and O’Melveny are serving as legal advisors to Nexus.
About HDT Global
Headquartered in Solon, Ohio, HDT Global is widely recognized for its industry-leading production of state-of-the-art, fully integrated expeditionary solutions, including shelters, generators, heaters, air filtration devices, robotics and other engineered technologies, currently used by U.S. and allied military units worldwide, as well as civilian government and commercial customers. Proven solutions for extreme environments. We’re there with you. For more information, visit www.hdtglobal.com.
Nexus is an alternative asset investment management company based in Los Angeles, California, that was founded in 2013. Nexus employs a flexible investment mandate that focuses on long-term value creation by partnering with leading management teams and businesses. For more information, please visit www.nexuslp.com.
Based in Boston and New York, Charlesbank Capital Partners is a middle-market private investment firm with more than $15 billion of capital raised since inception. Charlesbank focuses on management-led buyouts and growth capital financings, as well as opportunistic credit and technology investments. The firm seeks to build companies with sustainable competitive advantage and excellent prospects for growth. For more information, please visit www.charlesbank.com.