Blue Sea Forms New Platform

Blue Sea Capital has formed Thermal Spray Solutions Holdings as a new platform company focused on investments in the thermal spray services sector. The new platform has acquired its first company with the buy of Metallizing Service Company.

Metallizing Service Company (MSC) is a provider of niche thermal spray coatings to makers of aircraft engines and their first-tier and sub-tier suppliers.

MSC is NADCAP-certified (National Aerospace and Defense Contractors Accreditation Program) and specializes in plasma spray, HVOF and other specialized coatings for both military and commercial applications. HVOF stands for High Velocity Oxygen Fuel, a thermal process that applies molten or semi-molten materials at a high speed – 600 meters per second or more – on a substrate. MSC was founded in 1940 and is headquartered in Hartford, Connecticut.

“Thermal spray is a critical process within a supply chain that has stringent turnaround times and quality requirements,” said Scott Kirkendall, a partner at Blue Sea. “MSC has an enviable reputation for service and reliability among its customers and is the go-to supplier of complex coatings for many of the leading engine parts manufacturers.”

“Since its founding in 1940, MSC has focused on broad OEM approvals, and providing the highest level of customer service, which has allowed us to enjoy significant growth,” said David Gollob, a co-owner of MSC. “We are excited to partner with Blue Sea and believe their knowledge of aerospace coatings and our customer base will accelerate execution of our strategic plan. Blue Sea shares the same value systems we have embraced for well over two decades, including unparalleled customer service and industry-leading quality and technical resources.” Post-closing, Mr. Gollob will remain active with MSC as a member of the company’s board of directors.

West Palm Beach, Florida-based Blue Sea invests in companies that have up to $30 million of EBITDA and enterprise values of no more than $200 million. Sectors of interest include aerospace & defense, healthcare and industrial growth.

Twin Brook Capital Partners, the middle-market direct lending arm of Angelo Gordon, served as administrative agent on debt financing to support Blue Sea’s buy of MSC. Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.