Arlington Capital Partners To Acquire Eptec Defence

The leading defense vessel preservation specialist plays a critical role in servicing the Royal Australian Navy and allied fleets in the Pacific

WASHINGTON & SYDNEY--(BUSINESS WIRE)--Arlington Capital Partners (“Arlington”), a Washington, D.C.-area private investment firm specializing in government regulated industries, today announced it has entered into an agreement to acquire Eptec Defence (“Eptec” or “the Company”), a leading remediation and new build preservation services provider for Australian naval defense vessels. A key subcontractor to OEMs and defense primes, Eptec Defence is a standalone division of Eptec Group, an industrial and transportation-focused asset preservation company. The transaction is subject to customary closing conditions and regulatory approvals.

Headquartered in Sydney with locations at all major Australian naval hubs, Eptec fulfills a crucial role in the sustainment and new build value chains for the Royal Australian Navy by accelerating repair cycles and extending service life. Leveraging its deep technical expertise and over 350 specialized employees, the Company provides a wide range of preservation and repair services for the exterior and interior of naval vessels. Arlington has appointed Steve Zogas as the CEO, who will leverage more than a decade of leadership in the U.S. naval ship repair and maintenance industry, including his previous role as CFO of Vigor Marine, to drive organic and inorganic growth opportunities globally. The management team of Eptec Defence will continue to lead the business from an operational perspective.

“Access to specialized preservation services in strategic geographies will be critical to improving naval readiness,” said Peter Manos, a Managing Partner at Arlington Capital Partners. “With demand for such services increasing due to growing fleet sizes and higher operational tempo, we believe Eptec, paired with Arlington’s deep expertise building naval and defense businesses, is well-positioned to meet this challenge and reinforce its position as the ‘gold standard’ in the industry.”

Added Zogas: “I am incredibly impressed by Eptec’s scale, operational expertise, high-performing workforce and strong relationships with the leading global shipbuilders and repair companies that support Australia’s defense capability. I am excited to partner with Arlington and the Company’s management team to invest behind Eptec’s core competencies, infuse additional technology and global best practices into the preservation process and ultimately deliver greater value to our customers and career growth opportunities for our employees.”

Ben Ramundo, a Managing Director at Arlington Capital Partners, added: “As evidenced by AUKUS, the greater connectivity between Australia and other navies creates a significant opportunity for Eptec to become a trusted preservation provider to potential customers who may operate in the Pacific in the coming years. We are excited to create a global outsourced naval services platform, and a partnership with Eptec is the perfect place to start.”

Johnson Winter Slattery and Kirkland & Ellis served as legal advisors to Arlington Capital Partners. Moelis Australia acted as financial advisor and Corrs provided legal counsel to Eptec Group and the sellers.

About Eptec Defence
Eptec Defence is a specialist naval and defense preservation services provider with over 25 years of history serving the Royal Australian Navy. The company is headquartered in Sydney and has locations in the Adelaide, Perth, Cairns, Darwin and Brisbane metropolitan areas.

About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-area private investment firm specializing in government-regulated industries. Focused on the aerospace and defense, government services and technology, and healthcare sectors, the Firm partners with founders and entrepreneurs to build platforms of strategic importance to national priorities. Operating in markets with high barriers to entry, Arlington looks to partner with organizations within these industries that save lives, improve effectiveness, and reduce costs. Since inception in 1999, Arlington has invested in over 200 companies, raised over $14 billion in committed capital, and is currently investing out of its $6 billion Fund VII. For more information, visit Arlington’s website at http://www.arlingtoncap.com and follow Arlington on LinkedIn.