Daily News: April 24, 2012

Graycliff Partners Acquires Majority Interest in Skandia

Graycliff Partners, a middle-market investment firm focused on private equity, mezzanine and real estate investments in the U.S. and Latin America, announced that the firm has acquired a majority interest in Skandia, Inc., an interior products and services provider to the aviation industry. Financial terms of the transaction were not disclosed. East West Bank and Brookside Mezzanine Partners provided acquisition financing.

Headquartered in Davis Junction, IL, Skandia’s core offerings include DAX foam, the industry standard foam used in business jet seats, and flammability testing services. Founded in 1983, Skandia has been a value-added supplier to business jet manufacturers, airplane component manufacturers and modification centers for over 25 years.

“The investment in Skandia exemplifies our commitment to partnering with strong, entrepreneurial management teams seeking the next phase of growth and expansion,” said Jim Marley, managing director, Graycliff Partners. “We are pleased to announce this investment on the heels of our spin out from HSBC late last year and we look forward to applying our proven investment strategy and experience in investing in the aviation industry to further bolster Skandia’s growth.”

“Skandia is a leading player in a niche market with a profitable track record and diversified customer base,” said Duke Punhong, principal, Graycliff Partners. “The company fits squarely within Graycliff’s investment approach and we are excited to build a long and successful relationship with the Skandia team.”

“Skandia’s market position is well established and it enjoys a reputation as a value-added partner to the major OEMs and mod centers worldwide,” said Will Henderson, principal, Graycliff Partners. “We believe Skandia is well positioned to benefit from improving fundamentals in the private aviation industry.”

“Our partnering with Graycliff will provide us with the resources and strategic guidance to improve the business and better position ourselves to meet our customers increasing demands,” said Gary Palmer, president of Skandia. “We look forward to working side-by-side with the Graycliff team as we continue to provide superior products and services to the aviation industry and execute our growth plan.”

The investment in Skandia marks Graycliff’s first new platform investment since spinning out of HSBC in December 2011. Since 1991, the Graycliff Partners team, previously operating as HSBC Capital, has invested over $1 billion and completed in excess of 80 transactions.