Tower Arch Capital Completes Recapitalization of ACS Manufacturing

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Sep 04, 2024, 09:45 ET

SALT LAKE CITY, Sept. 4, 2024 /PRNewswire/ -- Tower Arch Capital is pleased to announce that it has recapitalized ACS Manufacturing ("ACS") in partnership with its founder, Dan Knox.

Founded in 1995 and headquartered in Denison, TX, ACS is a specialty manufacturer of structural enclosures for mission-critical back up power systems primarily used in data centers, but also serve hospitals and utility campuses. ACS provides custom engineered solutions to fit specifications of the individual generator and the data center, including integrated electrical wiring and switchgear components manufactured in-house through a subsidiary, Tier Power Systems. ACS and its subsidiaries operate 475,000 square feet of manufacturing facilities in Texas, South Carolina, and Arizona. ACS works directly with data center owners and power generator OEMs that are serving data center owners and operators.

Dan Knox, President and CEO, said, "ACS has grown to become a leading provider of specialized enclosures for the largest power generator OEMs and their data center partners. No matter the complexity of the job, our team is committed to providing the highest quality products and services to our customers. We are very proud of our growth thus far and look forward to our partnership with Tower Arch Capital as we continue to expand to serve the data center and other growing infrastructure markets."

David Parkin, a Partner at Tower Arch Capital, added, "We are excited to partner with Dan Knox and the entire ACS team. Our partnership with ACS brings another exceptional founder led business into our portfolio and we are looking forward to helping fuel the next phase of growth for ACS." Rhett Neuenschwander, a Tower Arch Capital Partner, said, "This next chapter of growth will be very exciting as we support and invest in ACS to enhance their capabilities and geographic reach while preserving their exceptional customer relationships."

Terms of the transaction were undisclosed. Financing for the transaction was provided by Bank of America, Truist Bank, UMB Bank, and Zions Bank. Advisors for Tower Arch Capital included Caddo Lake Capital, Gibson, Dunn & Crutcher LLP and BDO USA, LLP. Advisors for ACS included Jackson Walker LLP.

About ACS Manufacturing

ACS Manufacturing is a Denison, TX based specialty manufacturer of acoustical equipment enclosures, fuel tanks, turbine systems and skids. ACS performs complex structural, electrical and manufacturing work to design, build, test, and commission its enclosures and related power generation products. ACS serves many of the largest generator manufacturers and data center owner/operators in the US and has been a trusted partner to its customers for over 25 years. For more information, please visit www.acsmanufacturing.com.

About Tower Arch Capital

Headquartered in Salt Lake City, Utah, Tower Arch Capital is a lower-middle market private equity firm. Tower Arch seeks to partner with and grow high-quality family and entrepreneur-owned companies to deliver long-term value for their management teams and investors. Tower Arch brings operational, consulting, and financial expertise to companies to help them improve their operations, scale, and grow. Target investments include control positions in entrepreneur and family-owned businesses with EBITDA between $5 million and $30 million. For more information, please visit www.towerarch.com.

SOURCE Tower Arch Capital