Houlihan Lokey Advises API Technologies Corp.

Houlihan Lokey is pleased to announce that API Technologies Corp. (API), a portfolio company of J.F. Lehman & Company, has been acquired by AEA Investors LP (AEA). The transaction closed on May 9, 2019.

API Technologies is a leading designer and manufacturer of high-performance components and subsystems for demanding RF, microwave, and electromagnetic spectrum management applications in the defense, aerospace, space, and commercial end markets. With a heritage dating back to the 1950s, API’s products support critical applications such as radar, electronic warfare, space, current and next-generation military and commercial aircraft, and weapon systems, among others. API is headquartered in Marlborough, Massachusetts and has approximately 1,700 employees.

Since acquiring API in 2016, J.F. Lehman and management successfully transformed the company’s operations, rationalized its product portfolio, augmented research and development activities, and enhanced API’s sales and marketing strategy—resulting in substantial revenue and earnings growth. The substantial interest garnered from the competitive API process suggests further liquidity potential for other businesses that share API’s characteristics: highly engineered components designed into a strong and diverse portfolio of equipment and programs. The acquisition of API represents AEA’s continued investment in businesses that contain highly engineered component products.

J.F. Lehman & Company, a leading private equity firm founded in 1992, focuses exclusively on investing in companies in the aerospace, defense, maritime, government, and environmental industries and companies using the technical capabilities that originate from these sectors.

AEA was founded in 1968 and manages funds with more than $15 billion of invested and committed capital including the leveraged buyouts of middle market companies and smaller businesses and mezzanine and senior debt investments. AEA private equity invests across four sectors: value-added industrial products, specialty chemicals, consumer/retail, and services.

Houlihan Lokey served as financial advisor and assisted in marketing, structuring, and negotiating the transaction on behalf of J.F. Lehman and API. This transaction exemplifies the continued success of our aerospace and defense components coverage and represents another transaction in a long track record of advising and delivering outstanding results for sector leaders.