NDTnet - Sep 2003, Vol.8 No.9

Thayer Capital Partners Acquires Interest in MISTRAS Holdings Group
Thayer Adds Leading Company in the $4.5 Billion Nondestructive Testing (NDT) Market to the Private Equity Firm's Portfolio

Press Release Source: Thayer Capital Partners
Monday September 8, 8:31 am ET

WASHINGTON, Sept. 8 /PRNewswire/ -- Thayer Capital Partners today announced that its investment fund, Thayer Equity Investors IV, L.P. (Thayer IV), has completed an investment in closely held MISTRAS Holdings Group, which develops, manufactures and employs nondestructive testing (NDT) technology to verify the integrity of customers' critical equipment, components and infrastructure. Thayer IV's investment facilitated MISTRAS' purchase of CONAM Inspection, one of the nation's largest NDT service companies. "By investing in this market through MISTRAS and its operating subsidiaries, and facilitating the CONAM acquisition, Thayer has developed an ongoing partnership with one of the world's foremost NDT companies," Thayer Managing Partner Dan Dickinson explained. "The NDT equipment and services market is a high-margin, high-growth niche within the $100 billion test and measurement industry," noted Thayer Managing Director Daniel Raskas.

Raskas added that, by extension, Thayer is also teaming with one of the NDT industry's pioneering leaders and most passionate advocates, MISTRAS President and CEO Dr. Sotirios J. Vahaviolos. The equity investment will further enhance Thayer's focus on companies that manufacture or service industrial components or equipment.

Utilizing acoustic emission, ultrasonic and vibration analysis technologies to identify fatigue or defects in metals and other materials, MISTRAS' technologies ensure structural quality during manufacturing processes and safety once a finished product -- such as an airplane, bridge, or pipeline -- is in use. MISTRAS serves a diverse set of end markets, including the transportation, construction, oil & gas, and power industries.

"Thayer Capital is known for its acumen in identifying and cultivating investments in companies with exceptional growth prospects, and we're pleased that the firm recognizes MISTRAS' potential to dramatically increase its share of the fragmented nondestructive testing market," said Vahaviolos, who is also MISTRAS' majority shareholder.

MISTRAS is headquartered in Princeton Junction, N.J. Terms of the transaction were not disclosed.

Thayer anticipates that the NDT market, and the larger testing and measurement industry, will begin to see growth accelerating from its historic mid to high single-digit growth rates, based on a number of emerging trends.

Constrained capital spending is encouraging companies to extend the useful life and functionality of existing assets, increasing demand for NDT technology. The need to avoid costly downtime in manufacturing encourages use of NDT technology to inspect operations without shutdowns and predict mechanical and other failures before they occur. More stringent regulations and heightened public concern for safety are forcing more thorough and frequent inspections, particularly in transportation and infrastructure, which can be completed more effectively and economically with NDT technology. Competition for manufacturers to maintain extraordinarily high quality standards, tight tolerances and low variability continues to fuel demand for NDT technology. About Thayer Capital Partners

Thayer Capital Partners is a rapidly growing private equity investment firm based in Washington, D.C. With two private equity funds totaling more than $1.4 billion, the firm manages buyouts and growth equity investments in two major sectors -- growth manufacturing (including electronics; industrial components and service; and outsourced manufacturing) and business services (including information technology and services; and outsourced business services). Thayer has made capital investments exceeding $950 million in value in more than 50 transactions in the last four years. The Company's web site can be found at www.thayercapital.com.

About MISTRAS Holding Group

The MISTRAS Holdings Group develops, manufactures and employs leading-edge technologies for advanced nondestructive testing and predictive maintenance, such as acoustic emission, automated ultrasonics, eddy current, vibration monitoring and resistivity systems. In addition, it provides on-line asset and integrity management systems and services that employ internet-based data acquisition and real-time assessment to monitor equipment and components in the world's industrial and public infrastructure.

MISTRAS Holdings has four subsidiaries/divisions in the United States: Physical Acoustics Corporation (PAC), NDT Automation, Vibra-Metrics and Quality Services Laboratories, Inc. (QSL-Plus) and trades globally under the name of "Physical Acoustics" with 10 additional worldwide subsidiaries. Visit the company's web site at www.mistrasholdings.com.

Source: Thayer Capital Partners

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