Leonid Capital Partners (a leading private credit firm focused on the US Government sector) 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. And 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 delivers material support to the US Armed Forces and 100+ countries – sourcing from small business partners, purchasing specialists, and direct DLA sources. And they specialize in revitalizing obsolescent parts and provide quick-response solutions for mission-critical needs. And 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. This innovative approach has positioned 55 Industries as a sought-after partner, securing a strong backlog of government contracts and making them a highly desirable target for Teedup’s strategic acquisition.
Teedup, which is recognized for its focus on acquiring profitable, established, and high-growth companies within the Defense and commercial sectors, identified 55 Industries as a unique, off-market acquisition for their portfolio. And this strategic move expands Teedup’s reach within the National Security market, further leveraging 55 Industries’ established government contract network and expertise.
Understanding the critical role of 55 Industries’ contract pipeline in securing the acquisition’s success, Leonid Capital Partners crafted a custom financing solution critical to the deal’s closing. This 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.
KEY QUOTES:
“55 Industries’ innovative model and strong contract pipeline perfectly serves the kind of cash-flowing opportunity we strive to provide our investors. 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.”
- Adam Wood, Partner at Teedup
“We are proud to support Teedup’s vision and empower their acquisition of 55 Industries. 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.”
- James Parker, Founding Partner of Leonid Capital Partners
