Houlihan Lokey Advises Excelitas Technologies Corp.

Houlihan Lokey is pleased to announce the successful placement of $570 million of HoldCo PIK Notes for Excelitas Technologies Corp. (Excelitas), a portfolio company of AEA Investors LP (AEA). Proceeds from the transaction were used to repay existing senior indebtedness and provide liquidity for the Company’s growth initiatives and M&A. The transaction closed on April 26, 2024.

Headquartered in Pittsburgh, PA, Excelitas is a leading industrial technology platform that provides sensing, detection, imaging and specialty illumination solutions to ~6,000 customers globally. Excelitas is a critical design partner to leading players across Life Sciences, Semiconductor, Industrial, IoT & Smart Building and Defense & Aerospace end-markets, with strong engineer-to-engineer collaboration to develop spec’d in solutions. The Company utilizes its advanced engineering and manufacturing capabilities to address global megatrends, including precision medicine, industrial automation, semiconductor production, the Internet of Things and military modernization. Excelitas has a demonstrated history of making acquisitions to enhance product offerings, expand its geographic footprint and diversify end-markets served. The financing transaction provides the Sponsor and management team with significant flexibility to pursue growth initiatives & M&A as well as unlock incremental equity value.

Founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co., AEA is a middle-market private equity firm with over 120 investment professionals that operates globally across offices in New York, Stamford, San Francisco, London, Munich and Shanghai. The firm manages funds that have approximately $19 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies, growth capital and debt investments.

Houlihan Lokey served as exclusive placement agent to Excelitas, assisting the Company in arranging, structuring and negotiating the financing. The Capital Markets Group ran an extremely targeted, efficient process and achieved outlier results leveraging significant competitive tension from a small group of interested parties. This transaction highlights the team’s expertise and continued leadership in raising PIK securities with bespoke terms in an elevated interest rate environment.

Hybrid Capital within Goldman Sachs Alternatives and Warburg Pincus Capital Solutions jointly provided the financing to Excelitas.