Aerospace & Defense

Arlington Capital Partners Announces Sale of TSI Group, Inc to B/E Aerospace

WASHINGTON, DC, October 4, 2010 — Arlington Capital Partners (, a Washington, DC based private equity firm, today announced the signing of a definitive agreement to sell one of its portfolio companies, TSI Group, Inc. to BE Aerospace (Nasdaq:BEAV), a leading manufacturer of aircraft cabin interior products and distributor of aerospace fasteners and consumables headquartered in Wellington, FL, for $310 million in cash.

TSI is the market leader in the design, engineering and manufacturing of customized, fully integrated, thermal management and interconnect solutions that address complex power management requirements of OEMs in the aerospace and defense industries. The Company has captured positions on over 125 defense and commercial aerospace platforms and over 70% of the Company’s revenues are derived from long-term, sole source agreements. Arlington Capital completed its initial platform investment in TSI in 2005.

“The successful exit of Arlington Capital’s investment in TSI is yet another strong illustration of the strategic value that we are able to build through a highly targeted buy-and-build strategy,” said Robert Knibb, Partner at Arlington Capital Partners. “Through eight total acquisitions in the thermal management sector, Arlington and the Company’s strong management team built TSI into the established market leader with unmatched design and production capabilities that will allow the Company to continue capturing positions on attractive long-term defense and aerospace programs.”

Peter Manos, Partner at Arlington Capital, said, “We are very proud of the success we achieved in our partnership with CEO Greg Tucker and the entire TSI management team. During our ownership, TSI’s revenues more than tripled and significantly increased its share of the thermal management market. We are pleased that this sale will result in attractive returns for our investors and allow TSI to be optimally positioned going forward as part of B/E Aerospace, one of the leading suppliers to the aerospace industry.”

Greg Tucker, TSI’s chief executive officer, said, “The entire TSI team is proud to have worked with Arlington Capital Partners in building a business with such strong long-term growth prospects. Arlington has been an ideal partner for the Company, as its relationships opened growth avenues for us and its financial and operational support provided valuable guidance during a time of rapid growth. Now, we look forward to leveraging the strengths of B/E Aerospace’s world-class leadership team and strong market position to create a powerhouse in the thermal and power management markets.”

The transaction is expected to close in the fourth quarter of 2010 and is subject to customary regulatory approvals.

About Arlington Capital Partners
Arlington Capital Partners is a Washington, DC based private equity fund with over $1 billion of committed capital focused on middle market buyout investment opportunities in growth industries including: defense/aerospace, government services, healthcare services, business services/outsourcing, media/information services, and education. The firm’s professionals have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field.

About B/E Aerospace
B/E Aerospace is the world’s leading manufacturer of aircraft cabin interior products and the world’s leading distributor of aerospace fasteners and consumables. B/E Aerospace designs, develops and manufactures a broad range of products for both commercial aircraft and business jets. B/E Aerospace manufactured products include aircraft cabin seating, lighting, oxygen systems, food and beverage preparation/storage equipment, and water and vacuum waste systems. The company also provides cabin interior design, reconfiguration and passenger-to-freighter conversion services. Products for the existing aircraft fleet – the aftermarket – generate approximately 50 percent of sales. B/E Aerospace sells and supports its products through its own global direct sales and product support organization.

About TSI Group Inc.
TSI Group, Inc. is recognized as a world class leader with the #1 market position in thermal management and electronics cooling, specializing in aluminum brazements, chassis, enclosures, heat exchangers, full box build and interconnect capability. The Company’s products are provided for military, commercial and security applications.

Contact: Robert Knibb or Peter Manos
Arlington Capital Partners
5425 Wisconsin Avenue, Suite 200
Chevy Chase, MD 20815
(202) 337-7500

SOURCE: Arlington Capital Partners