SBIA Names Talon Innovations Corporation 2018 Portfolio Company of the Year
The Small Business Investor Alliance (SBIA), America’s leading trade association of lower middle market private equity funds and investors, recognized Sauk Rapids, MN-based Talon Innovations Corporation as the 2018 Portfolio Company of the Year during the organization’s annual National Summit for Middle Market Funds. Investors and SBIA members Graycliff Partners joined Talon executives, and Small Business Administration Administrator Linda McMahon for the awards presentation.
Talon provides solution-based engineering and machining, welding and assembly of critical parts for the semiconductor equipment, aerospace and defense, and medical device industries. Representative products include proprietary gas systems, specialty valves, custom weldments and seals, and surgical instruments and medical device analyzers, all of which, are manufactured to a high degree of specification.
Founded in 1994, the Sauk Rapids, MN-based Talon Innovations Corporation was acquired by private equity investment firm Graycliff Partners in September 2013. Talon had 98 employees when Graycliff invested $10.75 million of debt and equity capital in the business. At Graycliff’s exit to Ichor Holdings (NASDAQ:ICHR) in December of 2017, Talon employed 447 skilled workers. Graycliff worked closely with Talon’s leadership to develop a strategic plan, including strategies for organic and external growth and achieving operational excellence. This included augmenting the leadership team with exceptional talent; establishing internal processes and improving daily operations; and successfully executing two add-on acquisitions. Talon’s revenue prior to Graycliff’s investment was $15 million. At exit, the company’s revenues topped $76 million.
A licensed Small Business Investment Company (SBIC), Graycliff Partners is a member of SBIA and an independent investment firm focusing on middle market private equity and mezzanine investments in the United States. In December of 2011, the former HSBC Capital team spun out to form Graycliff. “Graycliff’s investment in Talon is just one example of how we strive to partner with families, entrepreneurs, and management teams to provide capital and resources to grow their business,” said Graycliff partner Duke Punhong. Adding, “We are continually seeking opportunities to provide creative capital to middle market companies in underserved communities.”
The SBIA Portfolio Company of the Year recognizes the impact of private equity financing and the impressive achievements resulting from partnerships between private investors and small businesses. This award has been presented to 38 outstanding SBIA-member portfolio companies since 1987. Previous award winners have included companies that are household names to include Intel, Callaway Golf, Symbol Technologies, McAlister’s Deli, Buffalo Wild Wings, and Build-A-Bear Workshop.
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