August 17, 2021
J.F. Lehman & Company Completes Sale of BEI Precision

NEW YORK – J.F. Lehman & Company (“JFLCO”), a leading middle-market private equity firm focused exclusively on the defense, aerospace, maritime, government and environmental industries, announced today that investment affiliates have sold BEI Precision Systems & Space Company, Inc. (“BEI Precision” or the “Company”) to Quantic Corporate Holdings, Inc. (“Quantic Electronics”), a portfolio company of Arcline Investment Management. Terms of the transaction were not disclosed.

BEI Precision designs, engineers, and manufactures highly accurate, resilient, and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. Headquartered in Maumelle, AR, the Company’s products are designed into many of the U.S. government’s highest priority, long-life programs.

Since acquiring BEI Precision in 2017, JFLCO worked closely with management to successfully identify and integrate two strategic acquisitions, overhaul the Company’s R&D and business development functions, and optimize manufacturing operations. In turn, the Company has developed and delivered industry-leading products for numerous programs of national significance, resulting in substantial revenue and earnings growth.

“Our successful partnership with management has enabled BEI Precision to transform from a small, stable business unit of a larger corporate parent into a standalone, high-growth enterprise with state-of-the art products occupying sole-source positions on high priority space and defense electronics programs,” said Steve Brooks, Chairman of BEI Precision’s Board of Directors and Partner at JFLCO.

Mark Mirelez, President and Chief Executive Officer of BEI Precision, commented, “Today’s milestone is a validation of the market leading position, operational excellence, and culture that we have worked tirelessly to achieve. We are immensely grateful for JFLCO’s support and look forward to continuing to deliver on future growth opportunities with our new partners at Quantic Electronics.”

“We are extremely proud of the accomplishments Mark and his team achieved during our ownership,” added Will Hanenberg, a member of BEI Precision’s Board of Directors and Managing Director at JFLCO. “As a result of their efforts, BEI Precision is uniquely-suited to address the dynamic requirements of its demanding space and military customers, and we believe Quantic Electronics is the ideal partner to help guide the Company through the next phase of its growth.”

KippsDeSanto & Co. served as exclusive financial advisor to JFLCO and Jones Day served as lead legal counsel. BakerHostetler provided legal support related to international trade, government contracts, and defense security compliance matters.