December 5, 2006

Celerity Partners forms Rincon Industries – completes acquisition of Paris Precision and recap of SharkRack


On November 20th, 2006, Celerity Partners completed the acquisition of Paris Precision, and, simultaneously, the recapitalization of SharkRack, Inc., to form Rincon Industries. Total consideration for the transaction was $32.5 million, with the financing provided by D.B. Zwirn, who in September of 2005 provided the financing for the $55 million leveraged acquisition of PC Helps, also led by Celerity. With this transaction, Celerity has completed its eighth leveraged acquisition or recapitalization within the last 16 months for aggregate consideration of approximately $300 million.

Rincon Industries, in which Celerity Partners owns a majority interest post-close, is a precision metal fabrication company based in Paso Robles and Union City, California with approximately 240,000 square feet of manufacturing facilities and $30 million in revenues. Rincon currently services about 180 active customers, including Applied Materials, Celestica, Flextronics, General Dynamics, Haas Automation, Jabil Circuit, Lucent Technologies, Motorola, NEC, Raytheon, Sanmina-SCI, Solectron, Tyco Electronics and Varian Electronics, in vertical markets encompassing capital equipment, data storage, industrial electronics, military/defense, transportation, telecommunications, financial services and oil and gas.

If you have acquisition prospects in precision metal fabrication or precision machining, please contact Mark Benham at (650) 233-8250 or Allen Chi at (650) 233-8234.