June 21, 2022, Greenville / Charleston, South Carolina – Route 2 Capital Partners (“R2CP”) is pleased to announce its subordinated debt and equity investment supporting the acquisition of National Electronic Alloys (“NEA”) by Fox Three Partners and management.
Headquartered in Oakland, NJ, NEA is a ‘stocking’ specialty metal service center distributor providing a wide array of DFARS (Defense Federal Acquisition Regulation Supplement) compliant products across the U.S. and international markets. DFARS is a set of restrictions for the origination of raw materials intended to protect the US defense industry from the vulnerabilities of being overly dependent on foreign sources of supply. NEA has locations in NJ and CA and is supported by a team of tenured employees. The Company has a full-service operation with state-of-the-art precision slitting, shearing, saw, and cut-to-length machinery and a large inventory of controlled and low expansion alloys.
Spalding White, Managing Partner of R2CP, commented, “Route 2 is pleased to support Fox Three and partner with Nick Martin and the rest of the management team to continue the growth of NEA. The company has built a solid reputation in the industry and currently services over 700 customers across the US with mission critical products.”
Taylor Grant, Managing Partner at Fox Three stated, “We are excited to partner with existing management to support the continued growth of NEA. They have built an outstanding business delivering high quality products with outstanding customer service. We look forward to working with the team and appreciate the support from Route 2 in closing the transaction.”
Route 2 Capital Partners is a private investment firm providing flexible junior capital solutions to lower middle-market companies, primarily in the southern U.S. The firm’s partners possess over 100 years of combined investment, transactional, and operational experience. Route 2 Capital Partners seeks to invest in established companies with minimum annual revenues and EBITDA of $10 million and $2 million, respectively, that generate predictable and profitable cash flows. Route 2 Capital Partners’ investment proceeds will be used to execute growth and expansion plans, support business recapitalizations, and facilitate management buyouts. Route 2 Capital Partners reviews opportunities in niche manufacturing, consumer products and services, and specialty distribution. For more information, visit www.route2capital.com.