Contact: Eileen Newman
Fidelity Strategic Investments Public Relations
Fidelity Capital Investors Acquires Avtek, Inc. and Subsidiaries
Boston, MA – October 3, 2005 – Fidelity Capital Investors (FCI), a private equity leveraged buyout group, announced today that it has acquired a majority interest in Providence, Rhode Island-based Avtek, Inc, a leading manufacturer and distributor of industrial and commercial connectivity products and solutions. The purchase was made in conjunction with members of Avtek’s senior management team who will remain with the company and continue to operate Avtek as an independent business unit. Capstone Partners LLC served as advisor to Avtek in the sale. Terms of the deal were not disclosed.
Avtek conducts business through two operating subsidiaries: B&B Electronics Manufacturing Company, Inc. and System Connection, Inc. B&B Electronics designs, manufactures and sells industrial connectivity products such as communications protocol converters and Ethernet infrastructure products. B&B has locations in Ottawa, Illinois and Galway, Ireland. System Connection is a manufacturer of custom and OEM solutions cabling with offices in Provo, Utah and Taipei, Taiwan. With locations in the US, Europe, and the Pacific Rim, Avtek is able to deliver its products globally.
“The market for connectivity products is growing rapidly as communications protocols proliferate,” said FCI Managing Director David Wilson. “There is tremendous growth potential for companies that can provide a full range of products to meet the needs of industrial and commercial customers. As a leading manufacturer of both industrial and commercial connectivity products, Avtek, along with its subsidiary companies, is extremely well positioned to capitalize on the growth opportunities that exist in this market.”
“The acquisition presents many exciting opportunities for Avtek’s companies and our customers,” commented Richard McGrail, president and chief operating officer of Avtek. “Fidelity Capital Investors’ financial backing will ensure that we have the resources necessary to support our growth initiatives. We are very excited about the potential of this relationship and, moving forward, will remain focused on delivering exceptional service and high quality products to our customers.”
About Fidelity Capital Investors
Fidelity Capital Investors (FCI) is a private equity leveraged buyout firm focused on acquiring established middle-market businesses. Investing exclusively for the account of Fidelity Investments, FCI actively seeks to partner with existing management teams to acquire and grow companies with revenues between $25 million and $250 million. For more information, visit www.fidelityacquisitions.com.
About Avtek, Inc.
Avtek, Inc. is a privately-held, Providence, Rhode Island-based company that conducts business through two operating subsidiaries, B&B Electronics, Inc. and System Connection, Inc. Avtek is a premier manufacturer of industrial and commercial connectivity solutions in the U.S. With locations in the U.S., Europe, and the Pacific Rim, Avtek is able to deliver its connectivity solutions globally. For more information, visit www.avtekcorp.com.
About B&B Electronics
Founded in 1981, Ottawa, Illinois-based B&B Electronics designs, manufactures and sells industrial connectivity products such as communications protocol converters and Ethernet infrastructure products. With offices in the US and Europe, the company sells its products worldwide. In addition to manufacturing products, B&B is also a value-added distributor for many quality vendors, allowing the company to serve as a single source for comprehensive data communications solutions. For more information, visit www.bb-elec.com.
About System Connection, Inc.
Founded in 1985, System Connection provides cabling and interconnection solutions to OEMs, distributors, contract manufacturers and cable assembly manufacturers. Its customers represent a wide spectrum of industries, including audio/video, auto, computer, data/telecom, electronics, health fitness, industrial, medical, POS and security. Headquartered in Provo, Utah, the company has international offices in Taiwan. For more information, visit www.systemconnection.com.
About Capstone Partners LLC
Capstone Partners LLC is a leading national investment banking advisory firm dedicated to serving the needs of middle-market businesses. With offices in Boston and San Francisco, the firm maintains transactional and research resources in the technology & media, business services and specialty products industries. For more information, visit www.capstonellc.com.
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