Realized Investment
Nu Visions serves the electronic manufacturing services (EMS) market for high complexity/low volume printed circuit board (PCB) production. The company is a contract manufacturer to original equipment manufacturers (OEM) in a wide variety of industries including defense, general industrial, computer, medical and communication.
Golden Gate Capital had agreed to purchase Nu Visions in a divestiture from Nu Horizons, a publicly traded electronic components distribution company. Senior lenders, however, were hesitant to provide Golden Gate Capital with financing because of concerns about the EMS industry stemming from the difficulties that the telecommunications industry had experienced in early 2001.
Caltius Mezzanine looked past the prevailing negative bias toward the EMS industry, recognizing the value of Nu Visions’ long-standing customer relationships in the defense industry, Golden Gate Capital’s experience in and knowledge of the EMS industry and the confidence of the existing management team in the company’s future as evidenced by its financial commitment to the buyout transaction.
Caltius Mezzanine provided subordinated debt and direct equity to support the acquisition. Golden Gate Capital successfully closed its acquisition, thereby creating a leader in the high complexity/low volume PCB market and establishing a solid platform for future acquisitions.