FML is pleased to congratulate client Compass Partners Capital LLC upon its recent acquisition of PRL, Inc. to help create a class-defining enterprise that will serve the United States Navy, as well as nuclear power and railroad industries. FML worked as advisors to Compass Partners Capital LLC during this process. Read the press release below.
Compass Partners Acquires PRL, Inc.
October 26, 2020 STAMFORD, CT | CORNWALL, PA | SOUTH WINDHAM, CT
Compass Partners Capital LLC (“Compass”), a Stamford-based investment firm, is pleased to announce the acquisition of PRL, Inc. (“PRL”), a leading manufacturer of high-tech alloy castings. PRL will be combined with Micro Precision Inc. (“MPI”), a Compass portfolio company, to create a best-in-class enterprise serving the United States Navy, nuclear power, and railroad industries. Vice Admiral John Morgan (USN, ret.), currently President & CEO of MPI, will serve as the Chief Executive Officer of the combined platform.
A former Deputy Chief of Naval Operations, Admiral Morgan stated, “We have no greater priority than our nation, our customers, and our employees. This combination demonstrates our steadfast commitment to all three with a concerted focus on the US submarine programs. We are building a trusted one-stop shop for critical components, with an unwavering dedication to quality and on-time delivery. These companies can and will grow as we serve the top priority programs in the Pentagon.” Headquartered in South Windham, CT, Micro Precision is a tier-one, Level 1/SUBSAFE supplier of critical components and assemblies for the US Navy’s Virginia and Columbia class submarines.
Family owned since 1972, PRL is headquartered in Cornwall, PA and comprised of PRL Industries, Regal Cast, and Lebanon Tool Company. A vertically-integrated enterprise, PRL and its subsidiaries have capabilities to pour a wide variety of ferrous and nonferrous alloy castings, conduct conventional to close tolerance machining on small to large components, and provide in-house non-destructive examination and upgrading services. Collectively, PRL’s team prides themselves on their decades of supplying high quality product and work to the US Navy and nuclear power industries.
Janis Herschkowitz, PRL’s President & CEO said, “The acquisition by MPI will not only provide additional resources to our talented workforce, but increases PRL’s visibility with the nuclear Navy, and will be instrumental in growing PRL to the next level. PRL is ecstatic to welcome Admiral John Morgan as the new CEO, as his leadership skills and values are second to none.”
“PRL’s employees have always been proud of the significant role we’ve played in our nation’s defense. To continue to do that with our partners at Compass gives us opportunity to expand and grow our role in providing the best Navy in the world with more diverse components,” added Patricicia Herschkowitz, a PRL, Inc. co-owner and Director of Public Relations, Government Affairs & Advertising. “I think our father would be proud of the direction we are headed.”
James Waters, Chief of Staff at Compass who led the deal team stated, “We are thankful to both Jan and Pat Herschkowitz and applaud them for building such a unique company. We are humbled to carry on their legacy, believe in Admiral Morgan, and are eager to make a positive impact for our country and the communities of Windham County, CT and Lebanon County, PA. Our patriotic investors deserve tremendous credit for making all of this possible.”
Bigelow LLC represented PRL in the transaction. PRL was also advised by Blank Rome LLP. Compass was advised by Willkie Farr & Gallagher LLP, Fiondella, Milone & LaSaracina LLP, and Trivista Business Group.
About PRL Inc.
Headquartered in Cornwall, Pennsylvania, PRL is comprised of PRL Industries, Inc., Regal Cast, Inc., and LTC, Inc.. PRL Industries provides customers with in-house poured castings, non-destructive examination and upgrading services on ferrous and nonferrous castings, as well as machining.
About Micro Precision LLC
Founded in 1981 and located in South Windham, CT, Micro Precision is a prime contractor supplying critical parts and mechanical assemblies to major submarine contractors, as well as the US Department of Defense and other government agencies.
Compass Partners Capital LLC is a private investment firm located in Stamford, CT. An independent sponsor, Compass focuses on defense and aerospace-related investments that are aligned with US national security strategy. About Bigelow LLC
Originally established in 1935, Bigelow LLC is widely known as the M&A Advisory Boutique that deals exclusively with private Entrepreneur Owner Managers. Bigelow has a reputation for having a unique understanding of the special requirements of the owner-managed, entrepreneurial operating company in building and ultimately capturing Enterprise Value.