Leonid Capital Partners Fuels PE Acquisition of 55 Industries with $7MM Private Credit Financing
Leonid Capital Partners, a leading private credit firm focused on the US Government sector, today announced a strategic $7 million financing to support private equity firm, Teedup, in their acquisition of 55 Industries, an inspections services company serving the Aerospace and Defense industries as a Prime contractor. This customized loan agreement, structured around 55 Industries' robust government contract pipeline and backlog, exemplifies Leonid's innovative approach to empowering strategic acquisitions within underserved and nationally critical sectors.
55 Industries: Revolutionizing Material Support Services
55 Industries delivers material support to the US Armed Forces and 100+ countries, sourcing from small business partners, purchasing specialists, and direct DLA sources. They specialize in revitalizing obsolescent parts and provide quick-response solutions for mission-critical needs. 55's ex-warfighter team ensures a deep understanding of personnel requirements and delivers a proactive and successful infrastructure, as opposed to more antiquated supply chain methods. Their innovative approach has positioned 55 Industries as a sought-after partner, securing a strong backlog of government contracts, making them a highly desirable target for Teedup's strategic acquisition.
Teedup's Vision: Building a Defense Industry Powerhouse
Teedup, recognized for its focus on acquiring profitable, established, high-growth companies within the Defense and commercial sectors, identified 55 Industries as a unique, off-market acquisition for their portfolio. This strategic move expands Teedup's reach within the National Security market, further leveraging 55 Industries' established government contract network and expertise.
Leonid's Unique Financing: Built for Strategic Growth
Understanding the critical role of 55 Industries' contract pipeline in securing the acquisition's success, Leonid Capital Partners crafted a customized financing solution critical to deal close. This innovative loan is specifically structured around the projected revenue generated by 55 Industries' existing and future government contracts, minimizing upfront costs and providing Teedup with the financial agility needed to seamlessly integrate the new acquisition.
"55 Industries' innovative model and strong contract pipeline perfectly serves the kind of cash-flowing opportunity we strive to provide our investors," said Adam Wood, Partner at Teedup. "Leonid Capital Partners' deep understanding of our industry and their willingness to structure a financing solution tailored to our needs were instrumental in closing this strategic acquisition. This partnership allows us to focus on integrating 55 Industries and accelerating their growth within the defense sector. The Leonid team is a special group of A-players."
"We are proud to support Teedup's vision and empower their acquisition of 55 Industries," said James Parker, Founding Partner of Leonid Capital Partners. "This customized financing showcases our commitment to fostering strategic growth within critical National Security sectors. By leveraging the strength of 55 Industries' contract pipeline, we are confident this partnership will lead to a stronger, more resilient supply chain for our Country."
About Leonid Capital Partners
Leonid Capital Partners is private credit firm focused on the US Government sector. The firm offers a variety of flexible financing options, including term loans, lines of credit, venture debt, and acquisition financing all tailored to the unique needs of government contractors. https://leonidfinance.io
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