WASHINGTON, D.C. – Farragut Capital Partners, LLC (“Farragut”) is pleased to announce the closing of an investment in Arc Drilling Holding, LLC (“Arc Drilling” or “the Company”). Farragut invested debt and preferred equity in support of a majority recapitalization of Arc Drilling by Washington Equity Partners in partnership with the Company’s existing owners and management team.
Founded in 1961 and headquartered in Cleveland, Ohio, Arc Drilling is a leading provider of electrical discharge machining (“EDM”) solutions to the industrial gas turbine and aerospace engine markets. The Company is an industry leader in production quality and turnaround times and it performs EDM services on over 200,000 parts per year for a diversified customer base that includes General Electric, Parker Hannifin, Precision Castparts, Swagelok and Woodward. With facility locations in Cleveland, OH, Greenville, SC, and Charleston, SC, Arc Drilling is strategically positioned near major industrial gas turbine and aerospace engine manufacturing centers.
Alan Cuthbertson of Farragut said of the transaction, “We’re excited to partner with Washington Equity and the Company’s management in this transaction. Arc Drilling is a well-established leader in the EDM market and has developed impressive long-term relationships as a critical supplier to some of the most-recognized companies in the industry. Washington Equity brings deep experience and knowledge of the space which will unlock some exciting growth opportunities for the Company moving ahead.”
Jesse Liu of Washington Equity Partners added, “As a pure-play EDM provider, Arc Drilling is uniquely positioned to benefit from the growing demand in the turbine market for manufacturing technologies that can reliably produce small and complex hole channels and pathways. The Farragut team’s diligence and conviction in the opportunity made it a great partner from start to finish on this transaction, and Arc Drilling will continue to benefit from Farragut’s resources, insights and support as it capitalizes on the growth opportunities ahead.”