SYDNEY: Arlington Capital Partners, a private investment firm focused on government regulated industries, said Tuesday it has agreed to acquire Eptec Defence, a provider of remediation and new build preservation services for Australian naval vessels.
The transaction, whose terms were not disclosed, is subject to customary closing conditions and regulatory approvals. Eptec Defence operates as a standalone division of Eptec Group, an industrial and transportation-focused asset preservation company.
Based in Sydney with locations across all major Australian naval hubs, Eptec Defence provides preservation and repair services for the exterior and interior of naval vessels. The company employs more than 350 specialized workers and serves as a key subcontractor to original equipment manufacturers and defense primes in the Royal Australian Navy’s sustainment and new build value chains.
Arlington has appointed Steve Zogas as CEO. Zogas brings more than a decade of leadership in the U.S. naval ship repair and maintenance industry, including his previous role as chief financial officer of Vigor Marine. The existing management team of Eptec Defence will continue to lead the business operationally.
“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.”
Zogas said he was impressed by Eptec’s scale, operational expertise and relationships with global shipbuilders and repair companies supporting Australia’s defense capability. He added that he looks forward to partnering with Arlington and the company’s management to invest in Eptec’s core competencies and integrate additional technology and global best practices.
Ben Ramundo, a managing director at Arlington Capital Partners, noted that initiatives such as AUKUS reflect greater connectivity between Australia and other navies, creating opportunities for Eptec to serve potential customers operating in the Pacific.
Johnson Winter Slattery and Kirkland & Ellis served as legal advisers to Arlington Capital Partners. Moelis Australia acted as financial adviser, and Corrs provided legal counsel to Eptec Group and the sellers.
Eptec Defence has more than 25 years of history serving the Royal Australian Navy. In addition to its Sydney headquarters, the company has locations in the Adelaide, Perth, Cairns, Darwin and Brisbane metropolitan areas.