Tuesday 20 September 2022: Inspirit Capital, a UK based investment firm, has signed an agreement to acquire the Alpha3 Manufacturing group (“Alpha3”) through a carve out from a UK division of US-based Avnet group.
Alpha3 specialises in the manufacture of complex electro-mechanical assemblies, cable harnesses and other electrical components. The business operates across a number of brands including Tekdata Cryoconnect (www.cryoconnect.com), Tekdata Interconnections (www.tekdata-interconnect.com), CTL Manufacturing (www.ctlmanufacturing.com) and CCS Electronics (www.ccselec.com).
Operating across two sites in Scunthorpe and Stoke-on-Trent, Alpha3 serves multinational organisations spanning various end-markets including aerospace & defence, space/cryogenics, automotive, healthcare and industrials.
Inspirit Capital is a London-based investment firm that specialises in acquiring businesses that are no longer core to their parent company’s strategic objectives and require a different ownership structure to achieve their full potential.
Will Stamp, founding Partner at Inspirit Capital, says: “We are delighted to be investing in Alpha3, which continues to reinforce Inspirit’s status as a trusted counterparty for large corporations. Alpha3 has a stellar customer base, which is testament to its niche world-class product offering. We are excited about the prospect of continuing to grow the business, both organically and through select acquisitions.”
Dave Moore, Managing Director, at Alpha3, commented: “I am extremely excited by this development. With Inspirit’s support, Alpha3 now has the opportunity to operate in a more entrepreneurial environment and unlock its growth potential. Alongside our team’s outstanding know-how and customer focus, I am confident that Alpha3 will be a very successful independent business.”
Inspirit has assumed ownership with immediate effect and is making the investment from Inspirit Fund I. As part of the transaction, the business will also benefit from a substantial funding line with Shawbrook Bank. The transaction was notifiable under the National Security & Investments Act, with the Secretary of State for Business, Energy & Industrial Strategy determining that he will be taking no further action in relation to the acquisition.
Inspirit was advised on the transaction by Squire Patton Boggs (legal), FRP Advisory (debt), Arthur J Gallagher & Co (insurance), European Valuations (collateral review) and JacksonBreen (IT).
For further information, please contact:
Will Stamp, Partner, Inspirit Capital, wstamp@inspiritcap.com
